Company: TGE
Filing Date: 2025-07-10
Form Type: 424B3
Source: 0001213900-25-062835
Chunk: 318

Company: Generation Essentials Group
Filing Date: 2025-07-10
Form: 424B3
Chunk 318
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 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:

| ● | 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-60

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