Company: TGE
Filing Date: 2025-07-03
Form Type: F-1/A
Source: 0001213900-25-061211
Chunk: 313

Company: Generation Essentials Group
Filing Date: 2025-07-03
Form: F-1/A
Chunk 313
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 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 simplified approach in calculating ECLs. Under the simplified approach, the Group does not track changes
in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date.

Significant increase in credit risk

In assessing whether the credit risk has increased significantly
since initial recognition, the Group compares the risk of a default occurring on the financial instrument As of the reporting date with
the risk of a default occurring on the financial instrument As of the date of initial recognition. In making this assessment, the Group
considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward-looking
information that is available without undue cost or effort.

In particular, the following information is taken into account
when assessing whether credit risk has increased significantly:

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