Company: TGE
Filing Date: 2025-07-03
Form Type: F-1/A
Source: 0001213900-25-061211
Chunk: 358

Company: Generation Essentials Group
Filing Date: 2025-07-03
Form: F-1/A
Chunk 358
---
 to
recover overdue debts. Also, the management of the Group has delegated a team responsible for determination of credit limits and credit
approvals. In this regard, the management considers that the Group’s credit risk is significantly reduced.

<div align='center'>F-94

THE GENERATION ESSENTIALS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2022, 2023 AND 2024</div>

| 33. | FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES 
 (cont.)                                           |

The Group performs impairment assessment under ECL model on
other accounts receivable collectively and grouped based on shared credit risk characteristics by reference to the Group’s past
due status of outstanding balances, nature, size and industry of debtors and external credit ratings. The Group assesses the ECL of accounts
receivable based on historical observed default rates over the expected life of the debtors and forward-looking information (including
macroeconomic data such as GDP growth and unemployment rate) that is available without undue cost or effort.

Bank balances and restricted cash

Credit risk on bank balances and restricted cash is limited
because the counterparties are reputable banks with high credit ratings assigned by international credit agencies. The Group assessed
12-month ECL for bank balances and restricted cash by reference to information relating to probability of default and loss given default
of the respective credit rating grades published by external credit rating agencies. Based on the average loss rates, the 12-month ECL
on bank balances and restricted cash is insignificant and therefore no loss allowance was recognized.

Amounts due from joint ventures

The Group regularly evaluates the business performance of
joint ventures. The Group’s credit risks in these balances are considered low due to the strong financial positions of these entities.
The management believes that there are no significant increases in credit risk of these amounts since initial recognition and the Group
provided impairment based on 12-month ECL. The Group assessed the ECL for amounts due from joint ventures to be insignificant and
thus no loss allowance is recognized.

Deposits and other receivables

For deposits and other receivables, the Group makes periodic
individual assessment on the recoverability of other receivables and deposits based on historical settlement records, past experience,
and also quantitative and qualitative information that is reasonable and supportive forward-looking information. The Group believes that
there is no significant increase in credit risk of these amounts since initial recognition and the Group provided