Company: MAGH
Filing Date: 2025-02-24
Form Type: DRSLTR
Source: 0001493152-25-008054
Chunk: 3

Company: Magnitude International Ltd
Filing Date: 2025-02-24
Form: DRSLTR
Chunk 3
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 for larger value of government projects. Although Mr. Lim only contributed 40% of initial capital due to his self-financial constraints in 2012, he has the sole decision-making power to execute all the decisions for the best interest of the Company.

Conclusion: BNL is a registered L5 grade electrical engineering contractor with BCA that is eligible to tender for higher value of public sector project. Therefore, the relevant activities are those main electrical engineering contract in private or public construction sector.

| 2. | Power    
 over BNL |

| Mr                                                                                                             
 Lim demonstrates key decision-making authority in all the major strategic and operational decisions including: |                                                                                                      |
| -                                                                                                              | Purchase                                                                                             
 of property (capital investment decisions)                                                           |
| -                                                                                                              | Key                                                                                                  
 staff appointment such as General Manager (determining leadership and management structure)          |
| -                                                                                                              | Tendering                                                                                            
 work and contracts (control over revenue-generating activities)                                      |
| -                                                                                                              | Signing                                                                                              
 works variation orders and request for skilled labour (controls over costs activities)               |
| -                                                                                                              | Signing                                                                                              
 Letter of indemnity (influence over compliance and risk management)                                  |
| -                                                                                                              | Signing                                                                                              
 Non-Disclosure Agreement on potential M&A deal (control over the strategic direction of the Company) |
| -                                                                                                              | Attending                                                                                            
 to BNL legal affairs (influence over compliance and risk management)                                 |

No majority voting or director’s resolution is requested to approve the direction of the relevant activities. The relevant activities are solely directed by Mr. Lim. The Company also considers operational barriers ie. those key management personnel actively involving in operation have closed working relationship with Mr. Lim, and major customers are secured by Mr. Lim through his personal contacts and network that would prevent the business partner to exercising his right to remove Mr Lim. The business partner has no power over BNL.

Conclusion: Despite owning only 40%, Mr. Lim exercises dominant decision-making power, which satisfies the Power criterion under IFRS 10.

| 3. | Exposure                                                    
 or rights to variable returns from its involvement with BNL |

| - | Mr.                                                                                             
 Lim owns 40% of the company, meaning he is entitled to 40% of the profits and returns. However, 
 BNL incurred losses over the years, no dividend has been declared in the past.                  |
| - | Control                                                                                         
 over tendering and contracts directly affect revenue generation, indicating