Gconnect Logitec

Risks

• The Company has been formed specifically for the purpose of acquisition of the business of "Prithvi Enterprises" thus the company have limited operating history as a Company which may make it difficult for investors to evaluate its historical performance or future prospects.

• Further, any future acquisition may not be beneficial to the Company, its may have to pay a certain amount of premium to the outgoing management / shareholders for synergic benefits that the company may accrue compared to valuations of those firms / businesses / companies. Its inability to identify suitable acquisition opportunities in the future, or adequately priced acquisitions, entering into agreement with such parties or obtaining the necessary financing to make such acquisitions could adversely affect its future growth.

• Any disruptions to its logistics and transportation facilities could have a material adverse effect on the company`s business, financial condition, cash flows and results of operations.

• The company is dependent on its customers` business performance and developments in their markets and industries and their continuing outsourcing of logistics operations.

• The company is dependent on third party carriers and inland transportation companies to transport its client`s cargo.

• The Company operates in a highly competitive industry and face intense competition, which could adversely affect its results of operations and market share.

• Delays or defaults in payment by the company is customers or the tightening of payment periods to its suppliers could affect it cash flows and may adversely affect The Company is financial condition and operations.

• The Company & the sole proprietorship has experienced negative cash flows in some prior periods and may do so in the future, which could have a material adverse effect on its business, prospects, financial condition, cash flows and results of operations.

• The company`s top 10 customers contribute majority its revenues from operations for the period ended March 31, 2023. Any loss of business from one or more of them may adversely affect its revenues and profitability.

• The company does not verify the contents of the parcels transported by it, thereby exposing the company to the risks associated with the transportation of goods in violation of applicable regulations.

• Dependence on third-party vendors could have an adverse effect on its business financial condition and results of operations.

• The company may be unable to sufficiently obtain, maintain, protect, or enforce its intellectual property and other proprietary rights.

• Its Directors, and Promoters are party to certain litigation and claims. Any adverse decision may make its Directors and Promoters liable to penalties/ liabilites and may adversely affect the company reputation, business and financial status. A classification of these legal and other proceedings is given below.

• The company has not registered its name and corporate logo. The company may not be able to adequately protect its intellectual property rights, such as the use of its corporate logo, which could harm its competitiveness.

• The Company has not taken any insurance which may expose it from potential losses to which its may be subject to risk and this may have a material effect on its business and financial condition.

• The company does not own its Registered Office. A failure to renew its existing rent agreement at commercially favorable terms or at all may have a material adverse effect on its business, financial condition, and results of operations.

• The company has entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest.

• The company depends on the skills and experience of its Promoters, Key Managerial Personnel, Senior Management and employees with technical expertise for its business and future growth.

• Its Promoters and certain of the company`s Directors (some of whom are its Key Managerial Personnel) may have interests in the Company other than reimbursement of expenses incurred or normal remuneration or benefits. Further, the company has rented property from its Promoters and Directors.

• Its Promoters, who are also the company`s Directors will continue to hold a significant equity stake in the Company after the Issue and their interests may differ from those of the other shareholders.

• The Objects of the Issue for which funds are being raised have not been appraised by any bank or financial institution. The deployment of funds is entirely at the discretion of its management and as per the details mentioned in the section titled "Objects of the Issue". Any revision in the estimates may require it to reschedule its expenditure and may have a bearing on the company expected revenues and earnings.

• The company has not identified any alternate source of raising the funds required for the object of the Issue and the deployment of funds is entirely at its discretion and as per the details mentioned in the section titled "Objects of the Issue".

• Any variation in the utilization of the Net Proceeds as disclosed in this Prospectusshall be subject to certain compliance requirements, including prior Shareholders` approval.

• In the event there is any delay in the completion of the Issue, there would be a corresponding delay in the completion of the objects / schedule of implementation of this Issue which would in turn affect its revenues and results of operations.

• Breakdown, mishaps or accidents could result in a loss or slowdown in operations and could also cause damage to life and property.

• The company requires certain approvals, licenses, registrations and permits for its business, and failure to obtain or renew them in a timely manner may adversely affect its operations.

• The company experience the effects of seasonality, which may result in its operating results fluctuating significantly.

• The Company`s ability to pay dividends in the future will depends on a number of factors, including but not limited to the Company`s earnings, capital requirements, contractual obligations, applicable legal restrictions and overall financial position.

• The Company, in the past, has delayed in the payment of statutory dues.

• The average cost of acquisition of Equity Shares by its Promoters could be lower than the Issue Price.

• The company may not be able to detect or prevent fraud or other misconduct committed by its employees or third parties.

• Industry information included in this Prospectus has been derived from industry reports. There can be no assurance that such third-party statistical, financial, and other industry information is either complete or accurate.

• This Prospectus contains certain non-GAAP financial measures and certain other selected statistical information related to its operations and financial performance. These non-GAAP measures and statistical information may vary from any standard methodology that is applicable across the manufacturing industry, and therefore may not be comparable with financial or statistical information of similar nomenclature computed and presented by other manufacturing companies.

• Any future issuance of Equity Shares, or convertible securities or other equity linked securities by it and any sale of Equity Shares by its Promoter may dilute your shareholding and adversely affect the trading price of the Equity Shares.

• If there is any change in tax laws or regulations, or their interpretation, such changes may significantly affect its financial statements for the current and future years, which may have a material adverse effect on its financial position, business and results of operations.

• There is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.