Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 49

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 49
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PubCo’s annual report in PubCo’s second annual report on Form 20-F after becoming a public company. In addition, once PubCo
ceases to be an “emerging growth company” as such term is defined in the JOBS Act, PubCo’s independent registered public
accounting firm must attest to and report on the effectiveness of PubCo’s internal control over financial reporting. Moreover, even
if PubCo’s management concludes that PubCo’s internal control over financial reporting is effective, PubCo’s independent
registered public accounting firm, after conducting its own independent testing, may issue an adverse opinion on the effectiveness of
internal control over financial reporting if it is not satisfied with PubCo’s internal controls or the level at which PubCo’s
controls are documented, designed, operated or reviewed, or if it interprets the relevant requirements differently from PubCo. In addition,
PubCo’s reporting obligations will place a significant strain on PubCo’s management, operational and financial resources and
systems for the foreseeable future. PubCo may be unable to timely complete its evaluation testing and any required remediation.

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During the course of documenting
and testing PubCo’s internal control procedures, in the event that PubCo identifies weaknesses and deficiencies in PubCo’s
internal control over financial reporting, and fails to maintain the adequacy of its internal control over financial reporting, as these
standards are modified, supplemented, or amended from time to time, PubCo may not be able to conclude on an ongoing basis that it has
effective internal control over financial reporting in accordance with Section 404. Generally speaking, if PubCo fails to achieve
and maintain an effective internal control environment, it could result in material misstatements in PubCo’s financial statements
and could also impair PubCo’s ability to comply with applicable financial reporting requirements and related regulatory filings
on a timely basis. As a result, PubCo’s businesses, financial condition, results of operations and prospects, as well as the trading
price of the ordinary shares, may be materially and adversely affected. Additionally, ineffective internal control over financial reporting
could expose PubCo to increased risk of fraud or misuse of corporate assets and subject PubCo to potential delisting from the stock exchange
on which PubCo lists, regulatory investigations and civil or criminal sanctions. PubCo may also be required to restate its financial statements
from prior periods. PubCo will incur increased costs as a result of being a public company.

PubCo is a