Technopaints and Chemicals Limited

• Funding capital expenditure towards setting up a greenfield paints manufacturing and innovation facility₹149 Cr
• Part funding the incremental working capital requirements of our Company₹80.0 Cr
• General corporate purposes

Except as stated below, there are no outstanding criminal proceedings, actions by statutory or regulatory authorities, taxation claims, or other pending litigations/arbitration proceedings involving the Company, Directors, Promoters, Key Managerial Personnel, Senior Management, or Group Companies. There are no disciplinary actions imposed by SEBI or stock exchanges against Promoters in the last five financial years. The Board has adopted a Materiality Policy to identify material outstanding litigation.

• We derived 91.25%, 89.20% and 81.81% of our revenue from operations from the execution of Turnkey Paint Projects in Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. Any adverse developments in our ability to secure, execute or complete such projects could materially and adversely affect our business, results of operations, financial condition and cash flows.(Operational Execution)

• Turnkey Paint Projects expose us to a number of risks that are distinct from, and in addition to, those associated with standalone product sales. The execution of Turnkey Paint Projects requires us to coordinate manufacture of paint, logistics, site-level application, quality assurance, and project completion within contractually stipulated timelines and cost parameters. Any failure or delay in project execution, whether attributable to labour shortages, adverse weather conditions, supply chain disruptions, site access issues, regulatory or permitting delays, or other factors beyond our control, may result in cost overruns, liquidated damages, contractual penalties, or disputes with customers, any of which could materially and adversely affect our profitability.(Operational Execution)

• We derived 76.72%, 33.99% and 21.79% of our revenue from Turnkey Paint Projects from paint projects relating to government programmes in Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. A reduction in demand for such projects, our inability to successfully secure projects through competitive bidding processes, or any adverse change in government policies, priorities or budgetary allocations could adversely affect our business, results of operations, financial condition and cash flows.(Regulatory & Policy)

• Turnkey Paint Projects often require significant upfront investment in materials, mobilization and working capital before milestone-based or completion-based payments are received. For further details, see “– We have significant working capital requirements and any interruption in sufficient cash flow, or in accessing suitable financing to meet capital requirements, may have an adverse effect on our business, financial condition and results of operations.” on page 31.(Financial Management)

• We face competition from entities seeking to enter or expand their presence in the turnkey paint projects market, which could intensify competitive pressure, erode our pricing power, compress our margins, and reduce our ability to secure new Turnkey Paint Projects or retain existing customers. Any such entry or expansion could also reduce the differentiation we currently derive from our integrated business model.(Competition)

• Our top 10 customers contributed 81.90%, 64.62% and 56.96% of our revenue from operations in Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. Further, we do not have long-term agreements with our customers and they are under no obligation to award future projects to us. Any loss of, or reduction in business from, any of these customers could adversely affect our business, results of operations, financial condition and cash flows.(Customer Concentration)

• We enter into separate agreements or work orders with our customers in respect of each project awarded to us, and we do not have master service agreements, framework agreements or other long-term arrangements with our customers which provide for committed volumes or the award of future projects. Our arrangements with customers are project-specific in nature and do not extend beyond the completion of the relevant project. Accordingly, our customers are under no obligation to award further projects to us, and any repeat business is dependent on the continuation of our relationships with such customers and on our performance in respect of projects previously awarded.(Customer Concentration)

• Any failure or delay in the execution of a project, any defect in our products or their application, or any dispute in relation to a project, could result not only in the loss of the relevant project but in the discontinuation of the customer relationship in its entirety, including the loss of future business opportunities with that customer.(Operational Execution)

Each bar is a fixed formula applied to the figures shown above, scored 0–100. This is a reading of what the company disclosed — not a recommendation to apply or avoid, not a price target, and not a prediction of listing performance. Dimensions that could not be extracted are excluded rather than assumed, so coverage varies between documents.