Company: MAGH
Filing Date: 2025-09-15
Form Type: 20-F
Source: 0001493152-25-013424
Chunk: 2

Company: Magnitude International Ltd
Filing Date: 2025-09-15
Form: 20-F
Item: Item 3
Chunk 2
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 as workmanship and choice of materials, among other things, may occur in a project.
Any of these may also give rise to delays in completion of works or even unilateral termination of contracts by our customers due to
unsatisfactory performance. If we are unable to control our costs within our estimates or recover the extra costs and control the progress
of our projects, we may suffer cost overruns or even losses on our projects which may adversely affect our profit margin and results
of operations.

All
of our revenue is derived from competitive tendering and the contracts are not recurring in nature.

During
the fiscal years ended April 30, 2023, 2024 and 2025, we derived all of our revenue from contracts awarded through a competitive tender
process and the contracts are not recurring in nature. The growth of our business depends on our tendering successfully. Our existing
customers are not under any contractual obligation to give us the first right for any future projects nor are they obliged to enter into
any contracts with us or engage our services for their subsequent projects. We have to go through a new tender process with them for
each new project. Even if we are awarded with the contract in the end, there is no assurance that the terms and conditions of the new
contract will be substantially the same as the old one. New tender is generally more challenging as we are not familiar with the working
style and underlying requirements of new customers, thus our chances of success are more uncertain. For each new tender, there is no
assurance that (i) we would be able to meet the prerequisite requirements for tendering; (ii) we would be invited to or made aware of
the tender process; (iii) the terms and conditions of the new contracts would be comparable to the existing contracts or commercially
acceptable to us; and (iv) our tender would ultimately be selected by our existing or potential customer. In order to enhance our competitiveness
in the tender process, we may have to agree to a contract price that is lower than our proposed tender price and/or offer more favorable
terms to our customers. Even if we are prepared to do so, there is still no assurance that we will be awarded with the contract, thus
we cannot guarantee that there will be sufficient new and sizeable projects in our pipeline to sustain our business and maintain or improve
our current results of operations and financial conditions.

   2  

We
depend on our key management personnel, particularly Mr. Lim, and project management staff, and