Galaxy Entertainment Corporation Limited (''the Company'') was
incorporated on August 13, 1981. It operates leisure and entertainment
centers across the country and as at the balance sheet date it has 28
centers offering a variety of facilities such as bowling, pool and
video games, restaurant services, bakery, food court, etc. Further,
during the year 2013-14, the company has undertaken trading activity.
2. Capital and Other Commitments
a) Capital Commitment
Estimated amount of contracts remaining to be executed on capital
account and not provided for (net of advances) Rs. 12,213,561 (Previous
Year Rs. Nil).
b) Other Commitment
The Company has entered into certain non-cancellable agreements with
landlord for premises. Commitment toward the same is Rs. NIL (Previous
Year Rs. 6,51,000).
3. Contingent Liabilities not provided for
a) In respect of guarantees given by Company''s banker on behalf of the
Company of Rs.11,298,459 (Previous Year Rs. 11,398,459).
b) In respect of disputed tax demand not provided as following:
Particulars 2013-2014 2012-2013
Entertainment Tax Demand 20,04,648 1,603,718
Indirect Tax Demand
2003-2004 16,68,316 2,168,316
2008-2009 74,92,720 7,492,720
A.Y. 2009-2010 33,56,688 Nil
c) Claims on accounts of service tax on rental premises consequent to
retrospective charge of service on renting activity by Finance Act
2010. Amount which is not demanded has not been provided.
d) The Company has imported Capital Goods under the Export Promotion
Capital Goods Scheme of the Government of India, at concessional rates
of duty, on an undertaking to fulfll export obligation by October 2015.
Outstanding as at balance sheet date is Rs. 66,316,951 (Previous Year Rs.
4. Going Concern Assumption
The enterprise is normally viewed as a going concern, that is, as
continuing in operation for the foreseeable future. It is assumed that
the enterprise has neither the intention nor the necessity of
liquidation or of curtailing materially the scale of the operations.
5. Segment Reporting
Since incorporation the Company operated in a single business segment
of Leisure and Entertainment services. However, during the year it has
done trading activity in Fabric also. Thus, this disclosure is
applicable. As per geographical segment, the Company operates in a
single reportable geographical segment, i.e. within India.
1) Segments have been identified in line with the Accounting Standard on
Segment Reporting (AS-17) taking into account the organization''s
structure as well as the differential risks and returns of these
2) The Company has disclosed Business Segment as the primary segment
and type of products and services in each segment.
3) The revenue and results figures given above are directly identifable
to respective segments and expenditure on common services incurred at
the corporate level are not directly identifable to respective segments
have been shown as Other Un-allocable Expenditure.
4) The Other Information figures given above are directly identifable to
respective segments and information for corporate services for head
office and investments related to acquisitions have been shown as
6. Deferred Tax Asset/(Liability)
On a conservative basis, the Company has not recognized any deferred
tax asset on unabsorbed business losses/unabsorbed depreciation during
the current year.
7. Related Party Disclosure
In accordance with the Accounting Standard 18 on Related Party
Disclosure notifed under the Companies (Accounting Standard) Rules,
2006, as amended, the relevant information for the year ended March 31,
2014 is as under. Names of related parties and description of
I. Entities where control exists - Subsidiaries:
a) Rain Fruits & More Pvt. Ltd. (RFMPL)
b) Galaxy Rain Restaurants Pvt. Ltd. (GRRPL)
II. Entity where control exists through substantial equity interest:
a) Future Retail Limited (FRL) (formally known as Pantaloon Retail
b) Future Value Retail Limited (FVRL) (Merged with Future Retail
8. Based on the available information with the management, the
Company does not owe any sum to suppliers who are registered as Micro,
Small, Medium Enterprise as at March 31, 2014 in terms of the
provisions of The Micro, Small, Medium Enterprise Development Act,
9. In respect of amounts payable to overseas creditors for import of
certain gaming machinery all liability has been provided in the
respective year of imports and the management believes no further
liability is to be recorded in respect of such imports.
10. Balances of Debtors and Creditors are subject to confirmations and
11. In the opinion of the Board, all assets other than fixed assets and
non-current investments have value on realization in the ordinary
course of business at least equal to the amount at which they are
12. The Company made investments in National Saving Certifcates (NSC)
in the name of Managing Director of the company and the same has been
pledged with excise authority at Mumbai (Maharashtra) on behalf of the
company. The interest accrued on such investment will be accounted for