Company: TGE
Filing Date: 2025-11-21
Form Type: POS AM
Source: 0001213900-25-113604
Chunk: 264

Company: Generation Essentials Group
Filing Date: 2025-11-21
Form: POS AM
Chunk 264
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 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-37

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