Company: MAGH
Filing Date: 2025-06-25
Form Type: F-1/A
Source: 0001641172-25-016431
Chunk: 225

Company: Magnitude International Ltd
Filing Date: 2025-06-25
Form: F-1/A
Chunk 225
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 unlikely to be received, which could include default of contractual payments due for more than 60 days or there is significant difficulty of the counterparty.

To minimize credit risk, the Group has developed and maintained the Group’s credit risk gradings to categorize exposures according to their degree of risk of default. The credit rating information is supplied by publicly available financial information and the Group’s own trading records to rate its major customers and other debtors. The Group considers available reasonable and supportive forward-looking information which includes the following indicators:

| ● | Internal                                                                                    
 credit rating                                                                               |
| ● | External                                                                                    
 credit rating                                                                               |
| ● | Actual                                                                                      
 or expected significant adverse changes in business, financial or economic conditions that  
 are expected to cause a significant change to the debtor’s ability to meet its obligations  |
| ● | Actual                                                                                      
 or expected significant changes in the operating results of the debtor                      |
| ● | Significant                                                                                 
 increases in credit risk on other financial instruments of the same debtor                  |
| ● | Significant                                                                                 
 changes in the expected performance and behavior of the debtor, including changes in the    
 payment status of debtors in the company and changes in the operating results of the debtor |

Regardless of the analysis above, a significant increase in credit risk is presumed if a debtor is more than 30 days past due in making contractual payment.

The Group determined that its financial assets are credit-impaired when:

| ● | There                                                                                           
 is significant difficulty of the debtor                                                         |
| ● | A                                                                                               
 breach of contract, such as a default or past due event                                         |
| ● | It                                                                                              
 is becoming probable that the debtor will enter bankruptcy or other financial reorganization    |
| ● | There                                                                                           
 is a disappearance of an active market for that financial asset because of financial difficulty |

The Group categorizes a receivable for potential write-off when a debtor fails to make contractual payments more than 120 days past due. Financial assets are written off when there is evidence indicating that the debtor is in severe financial difficulty and the debtor has no realistic prospect of recovery.

| F-37 |

<div align='center'>MAGNITUDE INTERNATIONAL LTD AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS</div>

| 23. | Financial                   
 risk management (Continued) |

Credit risk(Continued)

The Group’s current credit risk grading framework comprises the following categories:

| Category |     | Definition                                                                                                                     
 of category                                                                                                                    |     | Basis                                      
 for recognising expected