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 17
centers offering a variety of facilities such as bowling, pool and
video games, restaurant services, bakery, food court, etc.
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. Nil (Previous Year
b) Other Commitment
The Company has entered into certain non-cancellable agreements with
landlord for premises. Commitment toward the same is Rs. 651,000
(Previous Year Rs. 2,170,000).
3. Contingent Liabilities not provided for:
a) In respect of guarantees given by Company''s banker on behalf of the
Company of Rs. 11,398,459 (Previous Year Rs. 11,533,959)
b) In respect of disputed tax demand not provided as following:
Particulars 2012-2013 2011-2012
Entertainment Tax Demand 1,603,718 1,603,718
Indirect Tax Demand
2003-2004 2,168,316 2,168,316
2008-2009 7,492,720 -
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 fulfill export obligation by October
2015. Outstanding as at balance sheet date is Rs. 529, 663,942
(Previous Year Rs. 529,663,942).
4. Going Concern:
The Statutory Auditors had made an observation in their audit report
for the year ending 31 March, 2012 as the going concern assumption due
to complete erosion of net worth. The Company has turned around during
the year and there is no negative net worth as on 31 March, 2013.
5. The Board of Directors of the Company has decided to transfer,
sell and/or dispose off 5 centres of Sports Bar Undertaking operated by
the Company in terms of business transfer agreement dated 28th March
2012, The approval of Shareholders of the Company under the provision
of section 293(1) (a) read with section 192A is also given, As the
agreement is subject to certain conditions, the disclosure required
under Accounting Standard 24-Discontinuing Operations will be made
after fulfillment of such conditions.
6. The Company operates in a single business segment of Leisure and
Entertainment services. Further, the Company operates in a single
reportable geographical segment, i.e. within India.
7. 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.
8. In accordance with the Accounting Standard 18 on Related Party
Disclosure notified under the Companies (Accounting Standard) Rules,
2006, as amended, the relevant information for the year ended March 31,
2013 is as under:
Names of related parties and description of relationship:
I. Entities where control exists - Subsidiaries: Rain Fruits & More
Pvt. Ltd. (RFMPL) Galaxy Rain Restaurants Pvt. Ltd. (GRRPL)
II. Entity where control exists through substantial equity interest:
Pantaloon Retail (India) Ltd. (PRIL)
III. Key Managerial Personnel:
M r. Rohinton Rabady (April – September)
9. 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, 2013 in terms of the
provisions of The Micro, Small, Medium Enterprise Development Act,
10. 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.
11. The agreement for certain premises occupied by the Company has
expired during the year the Company is in the process of executing
12. During the year the Company has assigned/transferred the Brand
Sports Bar Express. The brand was self generated and hence had no
cost of acquisition. The amount receivable on such assignment has been
disclosed under Other Operating Income.
13. Balances of Debtors and Creditors are subject to confirmations and
14. In the opinion of the Board, all assets other than fixed assets
and non-current investments have value on realisation in the ordinary
course of business at least equal to the amount at which they are