ORBIT GAR ANT DRILLING INC. NOTES TO THE CONSOLID A TED FINANCIAL ST A TEMENTS (Continued) (Amounts as at March 31, 2008 and for the nine and three months ended March 31, 2008 and for the six and three months ended March 31, 2007 are unaudited) 15. RELA TED P A R TY TR ANSACTIONS (Continued) During the year, the company entered into the following transactions with its related companies: March 31, March 31, March 31, March 31, June 30, 2008 2007 2008 2007 2007 (3 months) (3 months) (9 months) (6 months) (9 months) (unaudited) (unaudited) (unaudited) (unaudited) $$$$$ Sales ................................. 8,736 5,971 67,620 5,791 27,633 Purchases .............................. 861,464 217,770 1,809,039 217,770 551,514 R e n t ................................. 33,000 22,500 78,000 22,500 37,500 Management fees ......................... 62,500 62,500 187,500 125,000 187,500 Other ................................. — 50,000 100,000 50,000 50,000 These above transactions were made within the normal course of operations and have been recorded at the exchange amount which i s the amount of consideration established and agreed to by related parties. During the year ended June 30, 2007, the company paid to Ironbridge Equity P artners business acquisitions fees in the amount of $500,000. This transaction was not made within the normal course of operations and has been recorded at the exchange amount. As at March 31, 2008, accounts payable and accrued liabilities include a balance of $632,669 (June 30, 2007, $157,854) resultin g from these transactions. 16. FINANCIAL INSTRUMENTS Currency risk The company realizes a part of its activities in U.S. dollars and is thus exposed to foreign exchange fluctuations. The company does not actively manage this risk. As at March 31, 2008, the company has cash in U.S. dollars for an amount of $428,915 (June 30, 2007, $204,551) and accounts receivable in U.S. dollars for an amount of $271,659 (June 30, 2007, $449,685). Credit risk The company provides credit to its customers in the normal course of its operations. It carries out, on a continuing basis, cre dit checks on its customers and maintains provisions for contingent credit losses. T wo major customers represent 25% respectively by costu mer, 15% and 10% of the company’s trade accounts receivable as at March 31, 2008 (June 30, 2007, three major customers represent 34% respectively by costumer, 13%, 11% and 10%). T wo major customers represent 25% of the contract revenue for the 3 month period ended March 31, 2008, respectively by customer , 15% and 11%. T wo major customers represent 30% of the contract revenue for the 3 month period ended March 31, 2007, respectivel y by customer, 16% and 14%. T wo major customers represent 24% of the contract revenue for the 9 month period ended March 31, 2008 , respectively by customer 12% and 12%. Three major customers represent 40% of the contract revenue for the 6 month period ended March 31, 2007, respectively by customer, 12%, 12% and 16%. Three major customers represent 34% of the contract revenue for the 9 month period ended June 30, 2007, respectively by customer, 10%, 10% and 14%. Interest rate risk The company is subject to interest rate risk since a significant part of the long-term debt bears interest at variable rates. F air value The fair value of cash, accounts receivable, bank overdraft, bank loan, accounts payable and accrued liabilities, client deposi ts and advances from shareholders is approximately equal to their carrying values due to their short-term maturity. The fair value of the long-term debt bearing interest at variable rates is approximately equal to their carrying value due to t heir conditions that are comparable to similar loans. 17. SEGMENTED INFORMA TION The company operates in four geographic segments, Drilling Canada — surface, Drilling Canada — underground, Drilling US, Central and South America (‘‘other countries’’) — surface and Manufacturing Canada. The services provided in each of the reportable drill ing F-24