Company: MAGH
Filing Date: 2025-06-25
Form Type: F-1/A
Source: 0001641172-25-016431
Chunk: 227

Company: Magnitude International Ltd
Filing Date: 2025-06-25
Form: F-1/A
Chunk 227
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 |     |                          11,834 |     | (8,716  | ) |     |                                3,118 |     |                                2,289 |
|                     |     |                       4,465,426 |     | (53,239 | ) |     |                            4,412,187 |     |                            3,235,691 |

Contract assets that are not past due make up majority of the receivables.

Subsequent to the financial year ended April 30, 2024:

| - | More                                                                                        
 than 98% of trade receivables were collected.                                               |
| - | Except                                                                                      
 for those retention receivables which monies will only be released upon the expiry of the   
 defect liability period as specified in the contracts, more than 90% of the contract assets 
 have been billed and collected.                                                             |

| F-39 |

<div align='center'>MAGNITUDE INTERNATIONAL LTD AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS</div>

| 23. | Financial                   
 risk management (Continued) |

Credit risk(Continued)

Other receivables(Note 2)

The Group assessed the latest performance and financial position of the counterparties, adjusted for the future outlook of the industry in which the counterparties operate in, and concluded that there has significant increase in the credit risk since the initial recognition of an other receivable due from a third party amounted to SGD398,607 (equivalent to USD292,319). Accordingly, the Group recognized the impairment loss allowance using Lifetime ECL. As of April 30, 2024, the other receivable from a third party was fully impaired. The net other receivables are considered to be low credit risk and subject to immaterial credit loss. Credit loss for these assets has not been increased significantly since their initial recognition. Consequently, they are measured at the 12-month ECL.

Cash and cash equivalents(Note 3)

The Group held cash and bank balances with banks which are rated AA1 and A1 based on Moody’s and are considered to have low credit risk. The cash balances are measured on 12-month expected credit losses and subject to immaterial credit loss.

Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic