Company: MAGH
Filing Date: 2025-09-15
Form Type: 20-F
Source: 0001493152-25-013424
Chunk: 7

Company: Magnitude International Ltd
Filing Date: 2025-09-15
Form: 20-F
Item: Item 3
Chunk 7
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 of sales is comprised of subcontracting costs, material costs, project-related employee benefits expenses
and miscellaneous project expenses. During the fiscal year ended April 30, 2023, our subcontracting costs, material costs, project-related
employee benefit expenses and miscellaneous project expenses amounted to approximately S$12.1 million, S$5.5 million, S$1.3 million and
S$0.3 million, respectively, which accounted for approximately 63.0%, 28.8%, 6.8% and 1.4% of our respective total cost of sales.

During
the fiscal year ended April 30, 2024, our subcontracting costs, material costs, project-related employee benefit expenses and miscellaneous
project expenses amounted to approximately S$11.1 million, S$7.3 million, S$1.8 million and S$0.1 million, respectively, which accounted
for approximately 54.6%, 35.8%, 8.9% and 0.7% of our total cost of sales.

During the fiscal year ended April 30, 2025, our subcontracting costs, material costs, project-related employee benefit expenses and miscellaneous project expenses
amounted to approximately S$7.2 million, S$3.6 million, S$2.0 million and S$0.2 million, respectively, which accounted for approximately
55.3%, 28.0%, 15.2% and 1.5% of our total cost of sales. Other indirect costs include management costs, staff costs, administrative costs,
finance costs and sales and distribution expenses. If material costs, labor costs and/or other indirect costs increase, our subcontractors
may pass on the increase in their costs to us by increasing their subcontracting fees. If these costs continue to rise and we fail to
pass on the increase to our customers, it could adversely impact our financial condition, operating results and cash flows.

Changes
in existing laws, regulations and government policies, including those relating to environmental protection and labor safety, may cause
us to incur additional costs.

Our
business operations are governed by various laws, regulations and government policies in Singapore. The licensing requirements for contractors
in our industry, as well as environmental protection and labor safety requirements, may change from time to time in Singapore. We may
be unable to comply with all these requirements in time, or at all, or we may need to incur substantial costs to be compliant, which