Company: MAGH
Filing Date: 2025-09-15
Form Type: 20-F
Source: 0001493152-25-013424
Chunk: 83

Company: Magnitude International Ltd
Filing Date: 2025-09-15
Form: 20-F
Item: Item 5
Chunk 83
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 our consolidated financial statements. Furthermore, we do not have any retained or contingent interest in assets
transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. Moreover, we do not have
any variable interest in an unconsolidated entity that provides financing, liquidity, market risk or credit support to us or engages
in leasing, hedging or research and development services with us.

Quantitative
and Qualitative Disclosure About Financial Risk

Credit
risk

We
have adopted a policy of only dealing with creditworthy counterparties. We perform ongoing credit evaluation of our counterparties’
financial condition and generally do not require a collateral.

We
consider the probability of default upon our initial recognition of an asset and whether there has been a significant increase in credit
risk on an ongoing basis throughout each reporting period.

  51  

We
have determined the default event on a financial asset to be when internal and/or external information indicates that the financial asset
is unlikely to be received, which could include default of contractual payments due for more than 60 days or there is significant difficulty
of the counterparty.

To
minimize credit risk, we have developed and maintained credit risk gradings to categorize exposures according to the degree of risk of
default. The credit rating information is supplied by publicly available financial information and our own trading records to rate our
major customers and other debtors.

For
details of the credit risk, please refer to the notes to our consolidated financial statement included in this Annual Report under the
section headed “ Financial risk management.”

Customer
concentration risk

Revenue
generated from our top five customers accounted for 87.9%, 85.5%, and 76.7% of our total revenue for the financial years ended April
30, 2023 and 2024 and 2025 respectively. We do not have long-term agreements with any of our top five customers, and their engagement
of our services are made on an award basis.

For
details of the customer concentration risk, please refer to the section headed “ Risk Factors - Risks Relating to Our Business
and Industry - We rely on a limited number of major customers, of which may reduce or discontinue engagement of our services.”

Liquidity
risk

Our
exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. It is managed by matching
payment and receipt cycles. We finance our working capital requirements through a combination