Company: MAGH
Filing Date: 2025-03-20
Form Type: DRS/A
Source: 0001641172-25-000048
Chunk: 254

Company: Magnitude International Ltd
Filing Date: 2025-03-20
Form: DRS/A
Chunk 254
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|                                             |     |       SGD |   |     |       SGD |   |     |       USD |   |
| Keyman life                                 
 insurance policy, at fair value             |     |           |   |     |           |   |     |           |   |
| At beginning of year                        |     |   172,412 |   |     |   439,817 |   |     |   332,439 |   |
| Addition                                    |     |   322,220 |   |     |         - |   |     |         - |   |
| Insurance premium charged to profit or loss |     |   (64,412 | ) |     |         - |   |     |         - |   |
| Increase in fair value through other profit 
 or loss                                     |     |     7,280 |   |     |     7,681 |   |     |     5,806 |   |
| Foreign exchange adjustment                 |     |     2,317 |   |     |   (12,601 | ) |     |    (9,525 | ) |
| At end of year/period                       |     |   439,817 |   |     |   434,897 |   |     |   328,720 |   |

On December 10, 2018 and November 20, 2023, the Group entered into life insurance policies with an insurance company to insure against the death or diagnosis of a terminal illness of a director. Under the policies, the basic sum assured is USD500,000 and USD750,000 respectively. The contracts will be terminated on the occurrence of the earliest of the death of the key management personnel insured or other terms pursuant to the contracts. The Group has paid out total insurance premium with an aggregate amount of USD151,340 and USD235,617 (equivalent to SGD322,220) respectively at the inception of the policies, of which USD111,999 and USD169,000 respectively was financed through bank borrowings (Note 12). The Group may request a surrender of the contracts after the free look period and receive cash back based on the cash value at the date of withdrawal.

The initial cash value of the policy is recognized as a financial assets at fair value through profit or loss. The difference between the premium paid and initial cash surrender value of SGD64,412, which represents the prepayments is not significant to the financial statements. The