Company: MAGH
Filing Date: 2025-05-28
Form Type: F-1
Source: 0001641172-25-012644
Chunk: 283

Company: Magnitude International Ltd
Filing Date: 2025-05-28
Form: F-1
Chunk 283
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 that are not past due make up majority of the receivables.

Subsequent to the financial period ended October 31, 2024:

- More than 98% of trade receivables were collected.

- Except for those retention receivables which monies will only be released upon the expiry of the defect liability period as specified in the contracts, more than 59% of the contract assets have been billed and collected. The remaining contract assets is expected to be billed and settled by April 30, 2025.

Other receivables(Note 2)

The Group assessed the latest performance and financial position of the counterparties, adjusted for the future outlook of the industry in which the counterparties operate in, and concluded that there has significant increase in the credit risk since the initial recognition of other receivable from third parties amounted to SGD399,807 (equivalent to USD302,197). Accordingly, the Group recognized the impairment loss allowance using Lifetime ECL. As of April 30, 2024 and October 31, 2024, the other receivable from a third party was fully impaired. The net other receivables are considered to be low credit risk and subject to immaterial credit loss. Credit loss for these assets has not been increased significantly since their initial recognition. Consequently, they are measured at the 12-month ECL.

Cash and cash equivalents(Note 3)

The Group held cash and bank balances with banks which are rated AA1 and A1 based on Moody’s and are considered to have low credit risk. The cash balances are measured on 12-month expected credit losses and subject to immaterial credit loss.

Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Group’s performance to developments affecting a particular industry.

Exposure to credit risk

The Group has no significant concentration of credit risk other than balances with 3 customers (April 30, 2024: 3 customers) which represent 57% (April 30, 2024: 76%) of total trade receivables. Retention sum from 2 customers (April 30, 2024: 1 customer) represented 60% (April 30, 2024: 78%) of total retention sum receivables