Company: MAGH
Filing Date: 2025-01-02
Form Type: DRS
Source: 0001493152-25-000010
Chunk: 61

Company: Magnitude International Ltd
Filing Date: 2025-01-02
Form: DRS
Chunk 61
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 – Our aggregate sales generated from our top five customers   
 were approximately 88% and 85% of our revenue for the financial years ended April 30, 2023   
 and 2024, respectively. Sales to our largest customer amounted to S$12,637,595, representing 
 approximately 52% of our revenue for the financial year ended April 30, 2024. Our sales are  
 significantly affected by the demands of our largest customer which are largely influenced   
 by the overall costs to complete the project on time, without comprising on the quality of   
 works.                                                                                       |

| 49 |

| ● | Stiff                                                                                             
 competition in the market – The mechanical and electrical works industry in Singapore             
 is highly regulated with strict safety standards, and companies are expected to have a strong     
 track record of delivering high-quality projects. There are 2,161 contractors registered          
 with the BCA under the ME05 (Electrical Engineering) (of which 27 are of Grade L3 and 144         
 are of Grade L5), similar to the operating subsidiaries of the Group. The industry players        
 generally will compete against each other on market position, industry reputation, track          
 record, financial standing and relationship with main-contractors and project owners. Some        
 competitors have more manpower and resources, more qualifications that entitle them to provide    
 a wider scope of building solution services, longer operating histories, more financial strength, 
 stronger relationships with clients and owners and more established brand names and market        
 recognition than us. When we price our quotations/tenders or fix price contracts with our         
 clients and owners, we may face keen competition and significant downward pricing pressure,       
 thereby reducing our profit margins, which will have an adverse effect on our profitability       
 and results of operations.                                                                        |

| ● | Delay                                                                                             
 in completion of long-term projects – Completion of long-term projects can be delayed             
 due to reasons such as poor planning and inefficient execution by the project team. Delay         
 may result in cost overrun due to extended labor expenses, prolonged equipment rentals, increased 
 administrative overhead, and fluctuations in costs. The cost overrun will result in the actual    
 cost of the project to exceed the initially budgeted estimates used to bid on project during      
 the tender process.                                                                               |

| ● | Inflation                                                                                     
 risk – Inflationary factors including increased costs associated with higher material         
 costs, subcontracting costs, project related employee benefits expenses and miscellaneous     
 project expenses could have a material adverse effect on our operating results. A high rate   
 of