Company: TGE
Filing Date: 2025-07-10
Form Type: 424B3
Source: 0001213900-25-062835
Chunk: 317

Company: Generation Essentials Group
Filing Date: 2025-07-10
Form: 424B3
Chunk 317
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 ECLs for financial assets
at amortized cost. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the
cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. The expected cash
flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

General approach

For credit exposures for which there has not been a significant
increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible
within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk
since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective
of the timing of the default (a lifetime ECL).

<div align='center'>F-59

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

| 2. | APPLICATION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS 
 (cont.)                                                    |

Financial assets at amortized cost are subject to impairment
under the general approach and they are classified within the following stages for measurement of ECLs except for accounts receivable
arising from IFRS 15 which apply the simplified approach as detailed below.

| Stage 1 | Financial assets                                                                                                                          
 for which credit risk has not increased significantly since initial recognition and for which the loss allowance is measured at an amount 
 equal to 12-month ECLs                                                                                                                    |

| Stage 2 | Financial assets                                                                                                                      
 for which credit risk has increased significantly since initial recognition but that are not credit-impaired financial assets and for 
 which the loss allowance is measured at an amount equal to lifetime ECLs                                                              |

| Stage 3 | Financial assets                                                                                                                           
 that are credit-impaired at the reporting date (but that are not purchased or originated credit-impaired) and for which the loss allowance 
 is measured at an amount equal to lifetime ECLs                                                                                            |

Simplified approach

For accounts receivable arising from IFRS 15 that do not contain
a significant financing component or when the Group applies the practical expedient of not adjusting the effect of a significant financing
component, the Group applies the