Company: MAGH
Filing Date: 2025-09-15
Form Type: 20-F
Source: 0001493152-25-013424
Chunk: 86

Company: Magnitude International Ltd
Filing Date: 2025-09-15
Form: 20-F
Item: Item 5
Chunk 86
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 controls BNL since its incorporation, even during the period when he holds less than half of the voting
right of BNL. In making the judgement, the Company considered the purpose and design of BNL, assessed that Mr. Lim has the key decision-making
authority in all the major strategic and operational decisions, Mr. Lim has the practical ability to direct relevant activities of BNL
unilaterally including the ability to use his power over BNL to affect the amount of the investor’s return, no major operational
and financial decisions that must be referred to a shareholder vote and operational barriers to remove Mr. Lim. Based on the assessment,
BNL is consolidated within the group.

Revenue
recognition from provision of electrical works and installation services

The
Group recognizes contract revenue and contract costs from provision of electrical works and installation services for construction projects
using input method, based on the actual costs incurred by the Group to date compared with the total budgeted costs for the project to
estimate the revenue recognized during the period. The estimated total contract costs are based on contracted amounts, and in respect
of amounts not contracted for, management’s estimates of the amounts to be incurred taking into consideration historical trends
of the amounts incurred and adjusted for any price fluctuations during the year, where applicable. Notwithstanding that management reviews
and revises the estimates of both revenue and total contract costs as the contract progresses, the actual outcome of the contract in
terms of its total revenue and costs may be higher or lower than the estimates and this will affect the revenue and profit recognized.

Management
reviews the construction contracts for foreseeable losses whenever there is an indication that the estimated contract revenue is lower
than the estimated total contract costs.

IFRS and Interpretations of IFRS issued but not
yet effective

At the date of authorization of these financial statements,
certain IFRS and Interpretations of IFRS were issued but not yet effective. Consequential amendments were also made to various standards
as a result of these new/revised standards.

The Group does not intend to early adopt any of the above new/revised standards,
interpretations and amendments to the existing standards. Management anticipates that the adoption of the aforementioned revised/new standards
will not have a material impact on the financial statements of the Group and Company in the period of their initial adoption.

  53  

ITEM
6. DIRECTORS, SENIOR MANAGEMENT AND KEY EMPLOYEES