Company: MAGH
Filing Date: 2025-03-20
Form Type: DRS/A
Source: 0001641172-25-000048
Chunk: 79

Company: Magnitude International Ltd
Filing Date: 2025-03-20
Form: DRS/A
Chunk 79
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 2 to the consolidated financial statements included elsewhere in this prospectus, we believe the following critical accounting policies involve the most significant estimates and judgments used in the preparation of our financial statements.

| ● | Use                          
 of Estimates and Assumptions |

The preparation of consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period presented. Significant accounting estimates in the period include the allowance for trade and other receivables, impairment of property, plant and equipment, fair value of financial instrument and incremental borrowing rate of leases and deferred tax valuation allowance. Actual results may differ from these estimates.

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| ● | Basis            
 of Consolidation |

The consolidated financial statements include the financial statements of the Company and its subsidiaries. All inter-company balances and transactions within the Group have been eliminated upon consolidation.

| ● | Foreign                              
 Currency Translation and Transaction |

Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the date of the balance sheet. The resulting exchange differences are recorded in the statement of profit or loss and other comprehensive income.

The Group reporting currency is the Singapore Dollar or “S$” and the accompanying consolidated financial statements have been expressed in S$. In addition, the subsidiaries are operating in Singapore, maintain their books and record in their local currency, Singapore Dollars or “S$”, which is a functional currency as being the primary currency of the economic environment in which their operations are conducted.

In general, for consolidation purposes, assets and liabilities of companies within the Group whose functional currency is not S$ are translated into S$, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the year. The gains and losses resulting from translation of financial statements of foreign subsidiaries are recorded as a separate component of foreign currency translation reserve within the consolidated statements of changes in equity.

Translation gains and losses that arise from exchange rate fluctuations from transactions denominated in a currency other than the functional currency are translated, as the case may be, at the rate on the date of the transaction and included in the results of operations as incurred.

| ● | Cash                 
 and Cash Equivalents |

Cash and cash equivalents consist primarily of cash