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 8736 5971 67620 5791 27633 Purchases 861464 217770 1809039 217770 551514 R e n t 33000 22500 78000 22500 37500 Management fees 62500 62500 187500 125000 187500 Other 50000 100000 50000 50000 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 500000 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 632669 June 30 2007 157854 resultin g from these transactions 16 FINANCIAL INSTRUMENTS Currency risk The company realizes a part of its activities in US 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 US dollars for an amount of 428915 June 30 2007 204551 and accounts receivable in US dollars for an amount of 271659 June 30 2007 449685 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 companys 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 longterm 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 shortterm maturity The fair value of the longterm 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 F24