Company: MAGH
Filing Date: 2025-09-15
Form Type: 20-F
Source: 0001493152-25-013424
Chunk: 48

Company: Magnitude International Ltd
Filing Date: 2025-09-15
Form: 20-F
Item: Item 4
Chunk 48
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, expected duration of project and completion time, preliminary design drawings and a set of submission criteria including
time, date and place of submission. We are generally required to submit a tender proposal with schedule of rates for each item of work
or equipment required.

Preliminary
feasibility assessment

Upon
receiving the tender documents, our COO would conduct a preliminary feasibility assessment on the potential project to decide whether
to proceed with preparation for the tender. The preliminary feasibility assessment will include the following: (i) determining the scale
of the project in terms of contract value; (ii) reviewing the customer’s requirements, specifications and schedule of the project;
(iii) determining the scope of works required; (iv) reviewing contractual risks and obligations; (v) assessing the customer’s credit
profile to ascertain its ability to pay based on the proposed payment terms; (vi) reviewing all other risks, including financial, operational,
cash flows and regulatory; (vii) assessing the required capital and whether we can cumulate positive cash flows after we have commenced
the project for a designated period and achieve at least the minimum gross profit margin we desire; and (viii) evaluating our existing
commitments, available resources and competency. Where appropriate, we will clarify any ambiguities and inconsistencies in the tender
documents with the potential customer and attend the site show round.

If
our COO considers the potential project commercially feasible for our Group, our contract department will include the project in the
ongoing tender record list and form a tender team comprising members of our contract department and purchasing department to prepare
for the tender. If the information we collected in relation to the tender does not present favorable contract conditions, they will write
to the potential customer to reject the tender invitation.

Tender
pricing and preparation

During
tender preparation, our contract department and purchasing department will ascertain the pricing of the tender by estimating internal
costing and budgetary evaluation on costs such as labor, materials and equipment, and where applicable, work with subcontractors and
suppliers to obtain pricing for base price determination and to ensure that our tender bid price is competitive and realistic. Throughout
the tender preparation process, our contract department will continue to maintain/develop a relationship with the potential customer
to obtain budget and job intelligence and other market intelligence on competitors and forward the relevant information to the tender
team for pricing refinement.

We
adopt a cost estimate plus mark-up pricing model for pricing our tenders. Contracts with our major customers are generally at not