Company: MAGH
Filing Date: 2025-05-28
Form Type: F-1
Source: 0001641172-25-012644
Chunk: 107

Company: Magnitude International Ltd
Filing Date: 2025-05-28
Form: F-1
Chunk 107
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) all building electrical system installed in accordance with the approved plans by Singapore Civil Defence Force are required to be inspected, tested and endorsed by registered inspectors under the Fire Safety Act 1993; (ii) fibre readiness certification, or FRC, is a pre-requisite for all property developers or owners intending to acquire the Temporary Occupation Permit for a new property and the communication network installed in the building have to be inspected and tested by Netlink Trust before a FRC will be issued; and (iii) to apply for electrical connection for a new electrical installation, a licensed electrical worker, or LEW, has to issue a certificate of compliance and a certificate of readiness on the installation before the installation would be first energized by SP Group, and SP Group will issue a Statement of Turn-On of Electricity immediately after the successful first energization of the service connection. After the successful testing of the electrical system (where applicable), the completed works would be officially handed over to our customers. Our customer’s consultant team will conduct inspection to check whether the works are satisfactorily completed, and if they are satisfied, the authorized person of the project will issue the certificate of practical completion of the project to us certifying that the project is substantially completed and is approved for handover. Upon the issue of such certificate, half of the retention money is usually released to us and the performance bond, if any, is normally also released.

Defects liability period

Our customers normally specify a defect liability period in the contract, during which we are responsible to rectify defects identified in the electrical systems we installed at our cost. During the fiscal years ended April 30, 2023 and 2024, the defect liability period of our projects typically lasted for 12 to 18 months after the issue of the certificate of practical completion. Generally, we require a back-to-back defect liability period from our subcontractors for risk management purposes so that our subcontractors are generally responsible for rectifying the defects in their works or materials procured at their costs. Upon the expiry of the defect liability period, the other half of the retention money will be released to us.

Warranty period

Some of our customers may require a warranty period for generators, switchboards, security equipment, fire stopping materials, LED drivers for lighting and cabling after practical completion during which we are responsible to make good all defects, damages or other faults arising from the choice of materials and the performance of the works which are our responsibilities under the relevant project contracts. The warranty period is generally a period of two