v3.26.3
Contract assets/liabilities
 12 Months Ended
Apr. 30, 2026
Contract Assetsliabilities  
Contract assets/liabilities

 

9. Contract assets/liabilities

 

   April 30, 2025   April 30, 2026   April 30, 2026 
   SGD   SGD   USD 
             
Contract assets   4,210,736    5,859,977    4,600,390 
Less: Allowance for expected credit losses   (18,117)   (46,348)   (36,386)
Contract assets   4,192,619    5,813,629    4,564,004 
                
Contract liabilities   153,113    1,312,679    1,030,522 

 

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, 2025   April 30, 2026   April 30, 2026 
   SGD   SGD   USD 
             
Retention receivables   1,204,920    2,195,666    1,723,713 
Others*   3,005,816    3,664,311    2,876,677 
Contract assets   4,210,736    5,859,977    4,600,390 

 

* 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

 

9. 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 was primarily attributable to increased project activity in 2026 as certain projects progressed from the preliminary stage in the prior year. As a greater volume of electrical installation works was completed towards the end of the year, the related work had not yet been fully certified by customers, resulting in higher revenue recognized in excess of amounts billed.

 

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, 2025   April 30, 2026   April 30, 2026 
   SGD   SGD   USD 
Contract assets               
At beginning of financial year   3,303    18,117    14,223 
Addition   14,814    28,231    22,163 
At end of financial year   18,117    46,348    36,386 

 

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 increase in contract liabilities was primarily due to the prompt certification of work by a customer in respect of materials delivered to the project site. As the Company had not yet satisfied its remaining performance obligation to install the materials, the amounts certified were recognized as contract liabilities until the related installation services are performed.

 

Set out below is the amount of revenue recognized from:

 

   April 30, 2025   April 30, 2026   April 30, 2026 
   SGD   SGD   USD 
             
Amounts included in contract liabilities at the beginning of the year   581,767    153,113    120,202 
Performance obligations satisfied in previous years   -    -    - 

 

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, 2025 and 2026 may be recognized as revenue in the next reporting periods as follows:

 

   April 30, 2026   April 30, 2027   April 30, 2028   April 30, 2029    April 30, 2030  
   SGD   SGD   SGD   SGD    SGD  
Unsatisfied and partially unsatisfied performance obligations as at:                            
April 30, 2026   -    30,730,757    29,162,223    18,206,493      6,925,000  
April 30, 2025   18,810,005    15,951,564    15,562,861    6,730,809     

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MAGNITUDE INTERNATIONAL LTD AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS