True Colors Ltd IPO

We do not have long-term agreements with a majority of our customers. Any changes or cancellations to our orders or our inability to forecast demand for our products may adversely affect our business, results of operations and financial condition.

Increases in the prices of raw materials required for our operations could adversely affect our business and results of operations.

We derive majority of our revenue from trading of Ink and digital printing machine business unit and any reduction in the demand of such segment could have an adverse effect on our business, results of operations and financial conditions.

Fluctuation in market trends for Digital Textile Printing.

Our operations are subject to high working capital requirements. If we are unable to generate sufficient cash flows to allow us to make required payments, there may be an adverse effect on our results of operations.

The majority of our product sales is concentrated in the regions namely, Gujarat and Punjab For the period ended for December 31, 2024 and for Fiscal 2024, 2023 and 2022 our revenue from sale of products in Gujarat and Punjab accounted for 75.22%, 84.95%, 89.04%, and 90.04% of our revenue from operations, respectively any adverse developments affecting our operations in these regions could have an adverse impact on our business, financial condition, results of operations and cash flows.

The restated examination report by our peer review auditor has provided a matter of emphasis paragraph for the company, regarding acceptance of loan from persons other than directors, their relatives, or related parties, except as permitted under the Act.

Our Promoter and Promoter Group are involved in a venture which is in the same line of business/unit as that of our Company.

Our Company has experienced negative cash flow in prior periods and net decrease in cash and cash equivalents which may continue to do so in the future, which could have a material adverse effect on our business, prospects, financial condition, cash flows and results of operations.

Our business is subject to seasonal fluctuations, which could adversely affect our financial performance.