Company: MAGH
Filing Date: 2025-06-25
Form Type: F-1/A
Source: 0001641172-25-016431
Chunk: 104

Company: Magnitude International Ltd
Filing Date: 2025-06-25
Form: F-1/A
Chunk 104
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 suppliers for our projects from this list unless there are other subcontractors and suppliers recommended by our customers. In general, our purchasing department would obtain quotations from at least three subcontractors or suppliers (as the case may be) and prepare a cost comparison table for our COO to approve.

Taking out performance bonds and insurance

Approximately one-third of our projects during the fiscal years ended April 30, 2023 and 2024 required us to provide performance bonds issued by a bank or insurance company backed by cash or other collaterals and/or guarantees in favor of our customers to secure our performance under contracts, which is common in our industry. The amount of the performance bond required for each project is typically 10.0% of the notional contract sum for such project. Our performance bonds normally expire or are released upon completion of the projects or as otherwise specified in the contracts.

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As we generally act as the main electrical contractor in a construction project, the main contractor’s insurance policies will normally cover us and our subcontractors for the electrical project work we conduct for them, and we normally just have to take out insurance policies to cover the exclusions and excesses which we are required to pay under the insurance policies of the main contractor. In cases where we are the main contractor, we will normally be required to take out contractor’s all risks, work injury compensation and public liability insurance to comply with the applicable laws and regulations and the requirements under the contracts to cover ourselves as well as our subcontractors.

Project execution process

The project team conducts regular meetings with subcontractors to ensure that site work progresses according to schedule. Daily site inspections (including visual inspections and measurements) are conducted to ensure that works are carried out according to proper procedures. Site safety and construction quality are our critical focus areas, and hence our project manager closely monitor work sites during the project execution process and we also engage independent licensed engineer to inspect our electrical works at different stages of the project. In particular, we provide personal protective equipment such as helmets, safety boots, safety goggles, ear plugs and safety harness to our employees, and to ensure their proper usage of such personal protective equipment. We also ensure our subcontractors will do the same for their employees.

The project manager conducts regular project reviews with our COO who is generally responsible for supervising project implementation. Our COO together with the project manager will present and review project status with our CEO on a monthly basis. In terms of the financial management of the project, our chief financial officer, or CFO, will