Company: MAGH
Filing Date: 2025-09-15
Form Type: 20-F
Source: 0001493152-25-013424
Chunk: 84

Company: Magnitude International Ltd
Filing Date: 2025-09-15
Form: 20-F
Item: Item 5
Chunk 84
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 of funds generated from operations, bank
borrowing and shareholder’s loan, if necessary.

Based
on the above considerations, management is of the opinion that our Group has sufficient funds to meet its working capital requirements
and debt obligations, for at least the next 12 months. There are several factors that could potentially arise that could undermine the
Group’s plans, such as changes in the demand for our services, economic conditions, a deterioration in our operating results, and
our majority shareholder being unable to provide continued financial support.

We
maintain sufficient cash and cash equivalents, and internally generated cash flows to finance our activities and management is satisfied
that funds are available to finance the operations of our Group.

For
details of the liquidity risk, please refer to the notes to our consolidated financial statement included in this Annual Report under
the section headed “ Financial risk management.”

Market
risk

Market
risk is the risk that changes in market prices, such as interest rates and foreign exchange rates will affect our income. The objective
of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return on
risk.

For
details of the market risk, please refer to the notes to our consolidated financial statement included in this Annual Report under the
section headed “ Financial risk management.”

Foreign
currency risk

The
Group’s foreign exchange risk results mainly from cash flows from transactions denominated in foreign currencies. At present, the
Group does not have any formal policy for hedging against foreign currency risk. The Group ensures that the net exposure is kept to an
acceptable level by buying or selling foreign currencies at spot rates, where necessary, to address short-term imbalances.

  52  

Currently,
the Group has no transactional currency exposures arising from sales or purchases that are denominated in a currency other than the functional
currency of the Group, primarily Singapore Dollars (“ S$”)

The
Group’s financial assets and liabilities are substantially denominated in S$, and minimally financial assets and liabilities are
denominated in United States Dollar (“ US$). The Group considers that foreign exchange risk of US$ financial assets and liabilities
to the Group is not significant.

Interest
rate risk

Interest
rate risk is the risk that the fair value or future cash flows of the Group’s financial instruments will fluctuate because of changes
in market interest rates. The Group’s exposure to interest rate risk arises primarily from bank borrowings. We periodically review
our liabilities and monitor interest rate fluctuations to ensure that the exposure