Company: MAGH
Filing Date: 2025-09-15
Form Type: 20-F
Source: 0001493152-25-013424
Chunk: 52

Company: Magnitude International Ltd
Filing Date: 2025-09-15
Form: 20-F
Item: Item 4
Chunk 52
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 the CEO and the COO. In this meeting, the designated project team will perform value engineering
to identify ways to achieve the project scope at the lowest possible costs. After that, our contract department will enter details of
the project into our enterprise resource planning system, which set down the approval required for different types of project expenses
and the system for budget control and facilitate us to track real-time project costs.

Preparation
of work plan

After
the second kick-off meeting, the designated project team will evaluate and confirm the feasibility and profitability of the project,
and achieve a common understanding on the project scope and estimated profit. They will also review and fine tune the electrical system
design and project specifications received from our customer and formulate detailed electrical system installation design and work programs
that include working drawings and detailed particulars of materials and/or equipment to be used in the project and submit the same to
our customer or its consultant team for approval. Our project team will also prepare and submit a master program for the project setting
out key milestone dates (e. g. commencement date and date of practical completion) to our customer or its consultant team for approval.
The master program is reviewed and updated regularly during project implementation.

Procurement

Our
purchasing department is in charge of procurement for project execution, and they are also responsible for budget and supplier management
to ensure that the project will meet contract specifications and schedule within the limit of the agreed budget.

  33  

We
are responsible for completing material and/or equipment planning at the commencement of a project to ensure the materials and/or equipment
are delivered ahead of time and material expenditure and wastage are under control. Our material plan generally includes details of the
material suppliers and total quantities required. Our major raw materials are electrical wiring and equipment/systems (such as generators,
high and low tension systems, switchboards, transformers, capacitor banks, fire alarms and electric vehicle chargers).

In
general, we order materials and/or equipment from our suppliers in advance based on each project’s schedule and confirm the order
at least five working days prior to delivery. Our project team would coordinate with our suppliers to deliver the raw materials purchased
to the worksite directly. Our project manager would inspect the materials and/or equipment delivered onsite together with our project
engineer. We generally negotiate a two to five year warranty period from our suppliers for generators, switchboards, security equipment,
fire stopping materials, LED drivers for lighting and cabling to match the defect liability period in our contract with our customers