Company: MAGH
Filing Date: 2025-09-15
Form Type: 20-F
Source: 0001493152-25-013424
Chunk: 85

Company: Magnitude International Ltd
Filing Date: 2025-09-15
Form: 20-F
Item: Item 5
Chunk 85
---
 to interest rate risk is within acceptable levels.
We do not expect any significant effect on our profit or loss arising from the effects of reasonably expected changes to interest rates
on interest bearing financial instruments at the end of the reporting period.

For
details of the interest rate risk, please refer to the notes to our consolidated financial statement included in this Annual Report under
the section headed “ Financial risk management.”

Critical
Accounting Policies and Estimates

Our
consolidated financial statements and accompanying notes have been prepared in accordance with International Financial Reporting Standards
(“ IFRS”).

The
preparation of these financial statements and accompanying notes requires us to make estimates and judgments that affect the reported
amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We base our estimates
on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of
which form the basis of making judgments about the carrying values of assets and liabilities that are not readily apparent from other
sources. We have identified certain accounting policies that are significant to the preparation of our financial statements. These accounting
policies are important for an understanding of our financial condition and results of operation. Critical accounting policies are those
that are most important to the portrayal of our financial conditions and results of operations and require management’s difficult,
subjective, or complex judgment, often as a result of the need to make estimates about the effect of matters that are inherently uncertain
and may change in subsequent periods. Certain accounting estimates are particularly sensitive because of their significance to financial
statements and because of the possibility that future events affecting the estimate differ significantly from management’s current
judgments. While our material accounting policies are more fully described in Note 2 to the consolidated financial statements included
elsewhere in this Annual Report, we believe the following critical accounting policies involve the most significant estimates and judgments
used in the preparation of our financial statements.

Control
over BNL

BNL
was incorporated in November 2012 by Mr. Lim and a non-controlling interest. Immediately before Mr. Lim acquired the non-controlling
interest’s stake on April 5, 2023, BNL’s share capital totaled SGD 250,000, comprising 100,000 issued shares held by Mr.
Lim and 150,000 issued shares held by the non-controlling interest, representing SGD100,000 and SGD150,000 of BNL’s share capital,
respectively.

The
Company has concluded that Mr. Lim