Company: MAGH
Filing Date: 2025-03-20
Form Type: DRS/A
Source: 0001641172-25-000048
Chunk: 77

Company: Magnitude International Ltd
Filing Date: 2025-03-20
Form: DRS/A
Chunk 77
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 consolidated financial statement included in this prospectus under the section headed “Financial risk management.”

Customer concentration risk

Revenue generated from our top five
customers accounted for 87.9%, 85.5%, 91.8% and 72.5% of our total revenue for the financial years ended April 30, 2023 and 2024 and the six months ended October 31, 2023 and 2024 respectively.We do not have long-term agreements with any of our top five customers, and their engagement of our services are made on an award basis.

For details of the customer concentration risk, please refer to the section headed “Risk Factors – Risks Relating to Our Business and Industry – We rely on a limited number of major customers, of which may reduce or discontinue engagement of our services.”

Liquidity risk

Our exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. It is managed by matching payment and receipt cycles. We finance our working capital requirements through a combination 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 prospectus 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 optimising the return on risk.

For details of the market risk, please refer to the notes to our consolidated financial statement included in this prospectus 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