Company: MAGH
Filing Date: 2025-06-10
Form Type: F-1/A
Source: 0001641172-25-014489
Chunk: 104

Company: Magnitude International Ltd
Filing Date: 2025-06-10
Form: F-1/A
Chunk 104
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 are delivered ahead of time and material expenditure and wastage are under control. Our material plan generally includes details of the material suppliers and total quantities required. Our major raw materials are electrical wiring and equipment/systems (such as generators, high and low tension systems, switchboards, transformers, capacitor banks, fire alarms and electric vehicle chargers).

In general, we order materials and/or equipment from our suppliers in advance based on each project’s schedule and confirm the order at least five working days prior to delivery. Our project team would coordinate with our suppliers to deliver the raw materials purchased to the worksite directly. Our project manager would inspect the materials and/or equipment delivered onsite together with our project engineer. We generally negotiate a two to five year warranty period from our suppliers for generators, switchboards, security equipment, fire stopping materials, LED drivers for lighting and cabling to match the defect liability period in our contract with our customers.

Subcontracting

As we generally act as the main electrical contractor in a construction project, we typically work with subcontractors for flexible manpower management and to minimize our fixed costs of employing a large labor force. Depending on the scale of the project, the availability of our resources at the material time and the labor-intensiveness of the work involved, it may be more cost effective for us to delegate part of the labor-intensive installation work to suitable subcontractors. Our subcontractors are neither our employees nor agents and they are responsible for paying their own labor costs incurred from providing the necessary manpower for the subcontracted works.

Under the main contract with our customer, we are liable to pay the cost of our subcontractors and we are generally liable to our customers for the acts, defaults or neglects of our subcontractors. As such, we closely monitor the performance of our subcontractors to ensure that their site work progresses according to schedule and will meet our customers’ quality and safety standards as well as the applicable local laws and regulations.

Selection of subcontractors and material suppliers

Our purchasing department maintains and regularly review and update a list of qualified subcontractors and material suppliers that meet our stringent requirements, including their track record, their ability to meet our design, quality and/or safety specifications and our time schedule for supply of services and materials as well as the competitiveness of its pricing. As of April 30, 2024, there were 13 qualified subcontractors and 50 qualified suppliers on the list and we select subcontractors and suppliers for our projects from this list unless there are other subcontractors and suppliers recommended by our customers. In general, our