1.  BACKGROUND
 
 Galaxy Entertainment Corporation Limited (''the Company'') was
 incorporated on August 13, 1981. It operates leisure and entertainment
 centres across the country and as at the balance sheet date it has 20
 centers offering a variety of facilities such as bowling, pool and
 video games, restaurant services, etc.
 
 2.  Commitments
 
 Estimated amount of contracts remaining to be executed on capital
 account and not provided for (net of advances) Rs. Nil (Previous year
 Rs.Nil).
 
 3.  a) Contingent liabilities not provided for in respect of guarantees
 given by banks of Rs. 10,383,500 (Previous Year Rs. 10,937,600)
 
 b) 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).
 
 c) Claims on accounts of service Tax on rental premises consequent to
 retrospective charge of service on renting activity by Finance Act
 2010. Amount not ascertained.
 
 4. Improvements to Leasehold Premises at Colaba is depreciated at 5%,
 being the written down value rate applicable to Buildings as per
 Schedule XIV of the Companies Act, 1956. The lease agreement in respect
 of the premises is for 9 years respectively. The Company has, however,
 decided to depreciate the asset in accordance with the rates laid down
 in Schedule XIV, since the Company considers this to be, effectively, a
 long term arrangement and expects to renew the agreement for longer
 periods after the expiry of the agreement. In case of other centers,
 company has decided to depreciate the assets over a period of 9 years
 which is based on primary lease term.
 
 5. Vide Notification no: SO 301(E) dated 08/02/2011 issued by MCA.The
 Company has availed exemption from the disclosure requirements under
 para 3(i) (a) & 3(ii)(d) of Part III of Schedule VI with respect to
 figures of sales and purchases. The Board of Directors has given
 consent with regard to non-disclosure of information.
 
 6.  The Company operates in a single business segment of Leisure and
 Entertainment services. Further, the Company operates in a single
 reportable geographical segment.
 
 7.  Deferred Tax Asset/(Liability): - On a conservative basis, the
 Company has not recognized any deferred tax asset /(liability)
 pertaining to the current year.
 
 8. Related party disclosures
 
 In accordance with the Accounting Standard 18 on Related Party
 Disclosure issued by the ICAI, the relevant information for the year
 ended March 31,2011 is asunder:
 
 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. CGRRPL)
 
 II.  Entity where control exists through substantial equity interest:
 
 Pantaloon Retail (India) Ltd. (PRIL)
 
 III.  Key Managerial Personnel
 
 Mr.Rohinton Rabady
 
 9. The Company has classified various benefits provided to employees as
 under:
 
 II.  Defined Benefit Plans
 
 a.  Contribution to Gratuity Fund (Non-Funded Scheme)
 
 b.  Leave Encashment (Non - Funded Scheme)
 
 10.  Based on the available information with the management, the
 Company does not owe any sum to a small scale industrial undertaking as
 defined in clause (j) to section 3 of the Industries (Development and
 Regulation) Act, 1951 and there are no suppliers who are registered as
 Micro, Small, Medium Enterprise as at March 31,2011 in terms of the
 provisions of The Micro, Small, Medium Enterprise Development Act,
 2006.
 
 11.  In the opinion of the management, the current assets, loans and
 advances and current liabilities are of the value stated, if
 realized/paid in the ordinary course of business. The provision for
 depreciation on fixed assets and provision for all known liabilities is
 adequate and is not in excess of amounts considered reasonably
 necessary.
 
 12.  Previous year''s figures have been regrouped where necessary to
 conform to current year''s classification.