Company: TGE
Filing Date: 2025-11-21
Form Type: POS AM
Source: 0001213900-25-113604
Chunk: 265

Company: Generation Essentials Group
Filing Date: 2025-11-21
Form: POS AM
Chunk 265
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 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:

| ● | an actual or expected                                                              
 significant deterioration in the financial instrument’s external (if available) or 
 internal credit rating;                                                            |

| ● | significant deterioration                                                                       
 in external market indicators of credit risk, e.g. a significant increase in the credit spread, 
 the credit default swap prices for the debtor;                                                  |

| ● | existing or forecast                                                                     
 adverse changes in business, financial or economic conditions that are expected to cause 
 a significant decrease in the debtor’s ability to meet its debt obligations;             |

| ● | an actual or expected                                             
 significant deterioration in the operating results of the debtor; |

| ● | an actual or expected                                                                       
 significant adverse change in the regulatory, economic, or technological environment of the 
 debtor that results in a significant decrease in the debtor’s ability to meet its debt      
 obligations.                                                                                |

Irrespective of the outcome of the
above assessment, the Group presumes that the credit risk has increased significantly since initial recognition when contractual payments
are more than 30 days past due, unless the Group has reasonable and supportable information that demonstrates otherwise.

<div align='center'>F-38

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.)                                |

The Group regularly monitors the effectiveness
of the criteria used to identify whether there has been a significant increase in credit risk and revises them as appropriate to ensure
that the criteria are capable of identifying significant increase in credit risk before the amount becomes past due.

Definition of default

For internal credit risk management,
the Group considers an event of default occurs when information developed internally or obtained from external sources indicates that
the debtor is unlikely to pay its creditors, including the Group, in full (without