Company: MAGH
Filing Date: 2025-02-24
Form Type: DRS/A
Source: 0001493152-25-008050
Chunk: 82

Company: Magnitude International Ltd
Filing Date: 2025-02-24
Form: DRS/A
Chunk 82
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, at the rate on the date of the transaction and included in the results of operations as incurred.

| ● | Cash                 
 and Cash Equivalents |

Cash and cash equivalents consist primarily of cash in readily available current accounts. Cash and cash equivalents consist of highly liquid investments that are readily convertible to cash and that mature within three months or less from the date of purchase. The carrying amounts approximate fair value due to the short maturities of these instruments. We maintain most of our bank accounts in Singapore. There are no material accounts of the Company or any subsidiary in other jurisdictions.

| 64 |

| ● | Trade Receivable, net |

Trade receivables, net includes amounts billed under the contract terms. Depending on the established process between each individual client and the Group, payment terms are set forth in either the purchase orders, the Letter of Award (LOA), or the contract; the typical payment terms require settlement 35 days after the work has been certified. The contract receivable amounts are stated at their net realizable value. The Group maintains an allowance for doubtful accounts to provide for the estimated number of receivables that will not be collected. The Group considers several factors in its estimate of the allowance, including knowledge of a client’s financial condition, its historical collection experience, the age of the accounts receivable balances, current economic conditions, and other factors relevant to assessing the collectability of such receivables. In applying the foregoing accounting policy for receivables, management regularly assesses gross outstanding receivables and the related allowance for bad debt by first considering certain qualitative factors, such as seeing how much is owed by the client and whether the balance is overdue or delinquent. In the event that the balance is overdue, management will conduct a root cause analysis to determine why it is overdue. Potential causes may include a dispute regarding the amount due because of agreed upon deliverables or product quality (amounts that are carried in contracts receivable should not be subject to dispute over quality or amount because all such amounts accounted for as contract receivable are only accrued if they are reasonably expected to be collected). Further, in the management’s assessment, if the client is still an ongoing client, which means that it is either regularly making payment in entirety or material partial payments against his balance, or the Group is still performing working on a project and that the client has historically made payment(s), management typically considers these type of clients and their related receivables as collectable and in good standing.

| ● | Contract 
 Assets   |

Projects