Company: MAGH
Filing Date: 2025-09-15
Form Type: 20-F
Source: 0001493152-25-013424
Chunk: 170

Company: Magnitude International Ltd
Filing Date: 2025-09-15
Form: 20-F
Item: Item 19
Chunk 170
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412,370  

24. Financial risk management

The
Group’s activities expose it to a variety of financial risks from its operation. The key financial risks include credit risk, liquidity
risk and market risk (including foreign currency risk and interest rate risk).

The
director s

The
following sections provide details regarding the Group’s exposure to the abovementioned financial risks and the objectives, policies
and processes for the management of these risks.

There
has been no change to the Group’s exposure to these financial risks or the manner in which it manages and measures the risks.

MAGNITUDE
INTERNATIONAL LTD AND ITS SUBSIDIARIES

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS

  24.      Financial                    
           risk management (Continued)  
 ────────────────────────────────────────

Credit
risk

Credit
risk refers to the risk that the counterparty will default on its contractual obligations resulting in a loss to the Group. The Group’s
exposure to credit risk arises primarily from trade and other receivables. For other financial assets (including cash), the Group minimizes
credit risk by dealing exclusively with high credit rating counterparties.

The
Group has adopted a policy of only dealing with creditworthy counterparties. The Group performs ongoing credit evaluation of its counterparties’
financial condition and generally do not require a collateral.

The
Group considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit
risk on an ongoing basis throughout each reporting period.

The
Group has determined the default event on a financial asset to be when internal and/or external information indicates that the financial
asset is unlikely to be received, which could include default of contractual payments due for more than 60 days or there is significant
difficulty of the counterparty.

To
minimize credit risk, the Group has developed and maintained the Group’s credit risk gradings to categorize exposures according
to their degree of risk of default. The credit rating information is supplied by publicly available financial information and the Group’s
own trading records to rate its major customers and other debtors. The Group considers available reasonable and supportive forward-looking
information which includes the following indicators:

  Internal                                                                                                                               
  External                                                                                                                               
  Actual                                                                                                                                 
  Actual                                                                                                                                 
  Significant                                                                                                                            
  Significant                                                                                                                            

Regardless
of the analysis above, a significant increase in credit risk is presumed if a debtor is more than 30 days past due in making contractual
payment