Company: MAGH
Filing Date: 2025-09-15
Form Type: 20-F
Source: 0001493152-25-013424
Chunk: 50

Company: Magnitude International Ltd
Filing Date: 2025-09-15
Form: 20-F
Item: Item 4
Chunk 50
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70.0% and 70%, respectively. In cases where we are unsuccessful
with the tender, the contract department will prepare an evaluation report for our COO to review and determine the areas which we need
to improve on to increase our competitiveness.

The
award of contract normally comes in the form of a letter of award or letter of intent setting out basic details of the project, including
scope of work awarded and notional contract sum, which has to be countersigned by us. The award of tender would be legally binding on
the parties after we have counter-signed the letter of award or letter of intent. After that, the parties would typically proceed to
negotiate a formal contract with the following terms:

  Location                                  The location(s)                                                                                                                            
  Duration                                  The period during which                                                                                                                    
  Nature and scope of contracted works      Specification of the electrical                                                                                                            
  Notional contract sum                     The notional                                                                                                                               
  Progress payment                          We generally receive monthly                                                                                                               
  Schedule of rates                         Specifications of the contracted                                                                                                           
  Retention money                           A portion of progress payment                                                                                                              

  31  

  Variation orders             We shall complete contracted                                                                                                            
                               works varied in the form, character, quality or quantity as may be instructed by our customers in writing, and be valued at the same    
                               unit rate of similar work set out in the schedule of rates in the original contract.                                                    
  Performance bonds            Whether                                                                                                                                 
                               we need to take out a performance bond to be issued by a bank or insurance company equal to 5.0% to 10.0% of the notional contract      
                               sum to secure our Group’s due performance of the contract is subject to negotiation. Our largest customer, which accounted              
                               for approximately 70.4%, 52.2% and 30.6% of our revenue during the fiscal years ended April 30, 2023, 2024 and 2025, respectively,      
                               generally waive the requirement of performance bonds as we have established rapport with them.                                          
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Liquidated damages           If completion of a project                                                                                                              
  Defect liability period      A period during which we                                                                                                                

Project
implementation

Formation
of project team and handing over

After
we have been formally awarded with the contract, the tender team in charge of the tender will hand over the project