Company: MAGH
Filing Date: 2025-09-15
Form Type: 20-F
Source: 0001493152-25-013424
Chunk: 16

Company: Magnitude International Ltd
Filing Date: 2025-09-15
Form: 20-F
Item: Item 3
Chunk 16
---
 in quota for foreign workers or any additional restriction on the types of foreign
labor that we can employ, may materially and adversely affect our operations and financial performance. Any increase in FWL will also
increase our operating expenses and affect our results of operations and financial condition. Any increased difficulty in recruiting
and/or retaining foreign labor or any material adverse change in the relevant laws and regulations in relation to the employment of foreign
labor in Singapore could affect our ability and costs to recruit, retain or replace foreign workers and if we do not have sufficient
workforce to implement our current or future projects in a timely manner within our budget, our business, results of operations, financial
condition and business prospects will be materially and adversely affected.

   9  

Our
business operations are subject to adverse weather conditions and other construction risks which could affect our ability to meet scheduled
commitments.

Most
of our project contracts are subject to specific completion schedule requirements with a liquidated damages penalty if we fail to meet
the schedule. Such liquidated damages are typically levied at an agreed upon rate of the contract sum for each day of delay caused by
us or by our subcontractors. We may be unable to extend the contractual time allowed for completing a project undertaken by us even though
additional time is required due to (i) bad weather conditions and other acts of God; (ii) construction risks such as accidents, fire,
suspension of water and electricity supplies and shortage of labor, materials and equipment; (iii) additional variations to the agreed
upon plans as requested by customers; (iv) changing technical needs; (v) disputes with suppliers or subcontractors; or (vi) changes in
market conditions and other unforeseen problems that are beyond our control. In the event that delay is caused by the aforesaid circumstances,
we may have to accelerate our work progress so as to meet the scheduled time for completion, and such accelerated works will typically
incur additional costs (such as overtime payments to our workers), thereby adversely affecting the profitability of our business. Any
delay in a project will affect our billing, revenue, operating cash flows and financial condition. Moreover, there may be an overlap
in time between the completion of the delayed projects and the commencement of subsequent projects, which may create pressure on our
Group’s manpower and financial resources. Further, if there is a delay in completion of our projects which subjects us to the payment
of liquidated damages under the project contracts, this may adversely affect our liquidity and