Company: TGE
Filing Date: 2025-07-03
Form Type: F-1/A
Source: 0001213900-25-061211
Chunk: 316

Company: Generation Essentials Group
Filing Date: 2025-07-03
Form: F-1/A
Chunk 316
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 of debtors; and |

| ● | External credit ratings where available. |

The grouping is regularly reviewed by management to ensure
the constituents of each group continue to share similar credit risk characteristics.

Interest income is calculated based on the gross carrying
amount of the financial asset unless the financial asset is credit-impaired, in which case interest income is calculated based on amortized
cost of the financial asset.

The Group recognizes an impairment gain or loss in profit
or loss for all financial instruments by adjusting their carrying amount, with the exception of accounts receivable from contracts with
customers where the corresponding adjustment is recognized through a loss allowance account.

Classification as debt or equity

Debt and equity instruments are classified as either financial
liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability
and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual
interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognized at
the proceeds received, net of direct issue costs.

Financial liabilities at amortized cost

Financial liabilities including accounts payable, borrowings,
other payables and accruals, amounts due to subsidiaries’ non-controlling shareholders and amount due to ultimate holding company
are subsequently measured at amortized cost, using the effective interest method.

The Group derecognizes financial liabilities when, and only
when, the Group’s obligations are discharged, cancelled or have expired. The difference between the carrying amount of the financial
liability derecognized and the consideration paid and payable is recognized in profit or loss.

Derivative financial instruments

Derivatives are initially recognised at fair value at the
date when derivative contracts are entered into and are subsequently remeasured to their fair value at the end of the reporting period.
The resulting gain or loss is recognised in profit or loss.

<div align='center'>F-62

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.)                                                    |

Cash and cash equivalents are defined as cash plus highly
liquid and related certificates of deposits or commercial paper with an original term to maturity of three months or less.

A provision is recognized when a present obligation (legal
or constructive