v3.25.4
Contract assets/liabilities
 12 Months Ended
Apr. 30, 2025
Contract Assetsliabilities  
Contract assets/liabilities

8. Contract assets/liabilities

 

   April 30, 2024   April 30, 2025   April 30, 2025 
   SGD   SGD   USD 
             
Contract assets   3,422,121    4,210,736    3,225,629 
Less: Allowance for expected credit losses    (3,303)   (18,117)   (13,879)
Contract assets   3,418,818    4,192,619    3,211,750 
                
Contract liabilities   581,767    153,113    117,292 

 

Contract assets

 

Amounts of contract assets represent the Group’s rights to considerations from customers for the provision of construction services, which arise when: (i) the Group completed the relevant services under such contracts; and (ii) the customers withhold certain amounts payable to the Group as retention money to secure the due performance of the contracts for a period of generally 12 months (defect liability period) after completion of the relevant works. Any amount previously recognized as a contract asset is reclassified to trade receivables at the point at which it becomes unconditional and is invoiced to the customer.

 

The Group’s contract assets are analyzed as follows:

 Schedule of contract assets

   April 30, 2024   April 30, 2025   April 30, 2025 
   SGD   SGD   USD 
             
Retention receivables   1,839,910    1,204,920    923,027 
Others*   1,578,908    2,987,699    2,288,723 
Contract assets   3,418,818    4,192,619    3,211,750 

 

*It represents the revenue not yet billed to the customers which the Group has completed the relevant services under such contracts but yet certified by representatives appointed by the customers.

 

 

MAGNITUDE INTERNATIONAL LTD AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

 

8. Contract assets/liabilities (Continued)

 

Contract assets (Continued)

 

The Group’s contract assets include retention receivables to be settled, based on the expiry of the defect liability period of the relevant contracts or in accordance with the terms specified in the relevant contracts, at the end of the reporting period. The balances are classified as current as they are expected to be received within the Group’s normal operating cycle.

 

The increase in contract assets is primarily attributable to new electrical projects secured at the end of April 30, 2024 or at the beginning of the financial year ended April 30, 2025, for which the Group has performed preliminary electrical works that have not yet been certified by the main contractor.

 

The movement in allowance for expected credit losses of contract assets computed based on lifetime ECL was as follows:

 

 Schedule of allowance for expected credit losses of contract assets

   April 30, 2024   April 30, 2025   April 30, 2025 
   SGD   SGD   USD 
Contract assets               
At beginning of financial year   2,491    3,303    2,530 
Addition   812    14,814    11,348 
At end of financial year   3,303    18,117    13,878 

 

Contract liabilities

 

The contract liabilities represent the Company’s obligation to transfer services to customers for which the Company has received consideration (or an amount of consideration is due) from the customers.

 

The decrease in contract liabilities is primarily attributable to the completion of certain electrical projects carried forward from April 30, 2024, which were completed during the financial year ended April 30, 2025.

 

Set out below is the amount of revenue recognized from:

 

   April 30, 2024   April 30, 2025   April 30, 2025 
   SGD   SGD   USD 
                
Amounts included in contract liabilities at the beginning of the year   1,079,387    581,767    445,662 
Performance obligations satisfied in previous years   47,081    -    - 

 

Transaction price allocated to remaining performance obligations

 

Management expects that the transaction price allocated to remaining unsatisfied (or partially unsatisfied) performance obligations as at April 30, 2024 and 2025 may be recognized as revenue in the next reporting periods as follows: 

 

   April 30, 2025   April 30, 2026   April 30, 2027   April 30, 2028   April 30, 2029 
   SGD   SGD   SGD   SGD   SGD 
Unsatisfied and partially unsatisfied performance obligations as at:                         
April 30, 2025   -    18,810,005    15,951,564    15,562,861    6,730,809 
April 30, 2024   9,681,291    3,911,656    3,911,656    3,911,656    -

-

 

 

 

MAGNITUDE INTERNATIONAL LTD AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS