Company: TGE
Filing Date: 2025-11-21
Form Type: POS AM
Source: 0001213900-25-113604
Chunk: 266

Company: Generation Essentials Group
Filing Date: 2025-11-21
Form: POS AM
Chunk 266
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 taking into account any collaterals held by the Group).

Irrespective of the above, the Group
considers that default has occurred when a financial asset is more than 90 days past due unless the Group has reasonable and supportable
information to demonstrate that a more lagging default criterion is more appropriate.

Credit-impaired financial assets

A financial asset is credit-impaired
when one or more events that have a detrimental impact on the estimated future cash flows of that financial asset have occurred. Evidence
that a financial asset is credit-impaired includes observable data about the following events:

| a) | significant                                         
 financial difficulty of the issuer or the borrower; |

| b) | a                                                        
 breach of contract, such as a default or past due event; |

| c) | the                                                                                           
 lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s     
 financial difficulty, having granted to the borrower a concession(s) that the lender(s) would 
 not otherwise consider; or                                                                    |

| d) | it                                                                                              
 is becoming probable that the borrower will enter bankruptcy or other financial reorganization. |

Write-off policy

The Group writes off a financial asset
when there is information indicating that the counterparty is in severe financial difficulty and there is no realistic prospect of recovery,
for example, when the counterparty has been placed under liquidation or has entered into bankruptcy proceedings. Financial assets written
off may still be subject to enforcement activities under the Group’s recovery procedures, taking into account legal advice where
appropriate. A write-off constitutes a derecognition event. Any subsequent recoveries are recognized in profit or loss.

Measurement and recognition of ECL

The measurement of ECL is a function
of the probability of default, loss given default (i.e. the magnitude of the loss if there is a default) and the exposure at default.
The assessment of the probability of default and loss given default is based on historical data and forward-looking information. Estimation
of ECL reflects an unbiased and probability-weighted amount that is determined with the respective risks of default occurring as the
weights.

Generally, the ECL is the difference
between all contractual cash flows that are due to the Group in accordance with the contract and the cash flows that the Group expects
to receive, discounted at the effective interest rate determined at initial recognition.

Lifetime ECL for accounts receivable
from contract with customers are considered on a collective basis taking into consideration past due information and relevant credit
information such as forward looking macro