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.

We are subject to the significant influence of, and restrictions imposed by OEMs pursuant to the terms of our dealership or agency agreements that may adversely impact our business, results of operations, financial condition and prospects, including our ability to expand into new territories and acquire additional dealerships.

We are heavily dependent on the import for our machinery and ink divisions. A significant portion of our import is derived from selected geographies such as China and Japan. Any adverse developments in this market could adversely affect our business.

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 and services sales is concentrated in the regions namely, Gujarat and Punjab. For the period ended for Fiscal 2025, 2024 and 2023 our revenue from sale of products and services in Gujarat, Maharashtra and Punjab accounted for 90.63%, 93.32%, and 92.34% 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.