Company: TGE
Filing Date: 2025-11-21
Form Type: POS AM
Source: 0001213900-25-113604
Chunk: 314

Company: Generation Essentials Group
Filing Date: 2025-11-21
Form: POS AM
Chunk 314
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Group’s exposure the changes in fair value of financial assets. The derivative financial asset is initially recognized at fair
value and are subsequently remeasured at fair value. Any gains or losses arising from changes in fair value of derivative financial asset
are taken directly to profit or loss.

<div align='center'>F-71

THE GENERATION ESSENTIALS GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2022, 2023 AND 2024</div>

| 33. | FINANCIAL RISK MANAGEMENT OBJECTIVES AND 
 POLICIES (cont.)                         |

No sensitivity analysis is prepared
on unlisted equity shares and movie income right investments as the directors of the Company consider that the impact on the price risk
of the Group is insignificant.

Certain transactions of the Group are
denominated in foreign currencies which are different from the functional currency of group entities, and therefore the Group is exposed
to foreign currency risk. The Group currently does not have a foreign currency hedging policy. However, management monitors foreign exchange
exposure and will consider hedging significant foreign exchange exposure should the need arise.

The Group’s key currency risk
exposure primarily arises from accounts receivable, accounts payable and bank balances denominated in other currencies. As of December 31,
2022, 2023 and 2024, the Group had no significant exposure to foreign currency risk. Consequently, no sensitivity analysis has been performed
and disclosed.

The Group is exposed to cash flow interest
rate risk in relation to variable-rate bank balances and variable-rate borrowings. The Group aims to keep borrowings at variable rates.
The Group manages its interest rate exposures by assessing the potential impact arising from any interest rate movements based on interest
rate level and outlook. The management will review the proportion of borrowings in fixed and floating rates and ensure they are within
reasonable range.

No sensitivity analysis has been presented
for variable rate bank balances and variable rate borrowings as the bank balances and borrowings as the cash flow interest rate risk
exposure is insignificant.

Credit risk refers to the risk that
a counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group has adopted a policy of
only dealing with creditworthy counterparties, as a means of mitigating the risk of financial loss from defaults. The Group’s exposure
of its counterparties is continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties