Company: MAGH
Filing Date: 2025-07-18
Form Type: F-1/A
Source: 0001641172-25-020173
Chunk: 91

Company: Magnitude International Ltd
Filing Date: 2025-07-18
Form: F-1/A
Chunk 91
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 particular milestone is reached, the customer is sent a relevant statement of work signed by the customer’s assessor and an invoice for the related milestone payment. The Group will previously have recognized a contract asset for any work performed. Any amount previously recognized as a contract asset is reclassified to trade receivables at the point at which it is invoiced to the customer. If the milestone payment exceeds the revenue recognized to date under the cost-to-cost method then the Group recognizes a contract liability for the difference. There is not considered to be a significant financing component in a construction contracts with customers as the period between the recognition of revenue under the cost-to-cost method and the milestone payment is always less than one year.

Ad-hoc services includes various types of electrical
addition and alteration works that are generally completed within 30 days, revenue from which is recognized at a point in time when control
of the asset has been transferred to its customer, being when the customer has accepted the services in accordance with the sales contract
or the Group has objective evidence that all criteria for acceptance have been satisfied. There is no element of significant financing
component in the Group’s revenue transaction as customers are required to pay with a credit term of 30 days from the invoice date.

| ● | Cost of Sales |

Cost of sales primarily consist of material costs, subcontracting costs, project related employee benefits expenses and miscellaneous project expenses

| ● | Distribution Costs |

Distribution costs mainly consist
of advertisement expenses, local transportation expenses, entertainment expenses, gifts and donations, subscriptions and memberships
and sponsorships.

| ● | Administrative Expenses |

Administrativeexpenses consist primarily of bank charges, staff costs, director’s renumerations, depreciation, insurance expenses, professional fees and other miscellaneous administrative expenses.

| ● | Employee Benefits Expenses |

Defined contribution plan

The Company participates in the national pension schemes as defined by the laws of Singapore’s jurisdictions in which it has operations. Contributions to defined contribution pension schemes are recognized as an expense in the period in which the related service is performed.

| 68 |

Government grants

Government grants are compensation for expenses already incurred or for the purpose of giving immediate financial support to the Group. The government evaluates the Group’s eligibility for the grants on a consistent basis, and then makes the payment. Therefore, there are no restrictions on the grants.

Government grants, are recognized when received and all the conditions for their receipt have been met and are recorded as part of “other income.”

| ● | Related Parties’ 
 Transaction      |

Parties, which can be a