FOR AGE ORBIT INC NOTES TO THE CONSOLID A TED FINANCIAL ST A TEMENTS Continued Y ears ended January 31 2007 and 2006 13 RELA TED P A R TY TR ANSACTIONS Continued Amounts receivable resulting from these transactions are disclosed separately in Note 3 During the year the company acquired a land and a building from its parent company 28673820 Qu ebec Inc for a total value of 350000 This related party transaction has been accounted for at net book value amounting to 199116 F ollowing this transac tion an amount of 109239 net of future income taxes of 41645 has been debited as R elated P arty T ransactions A djustments in reta ined earnings Also during the year the company sold to its parent company 28673820 Qu ebec Inc a building for an amount of 45000 This related party transaction has been accounted for at net book value amounting to 36042 F ollowing this transaction an amount of 895 8 has been credited as R elated P arty T ransactions A djustments in retained earnings On January 30 2007 the company acquired by issuance of 100000 class F shares see Note 9 from 2 shareholders of the compa ny an investment in 91619254 Qu ebec Inc for a total value of 100000 This related party transaction has been accounted for at net book value amounting to 28888 F ollowing this transaction an amount of 71112 has been debited as R elated P arty T ransaction A djustment in retained earnings 91619254 Qu ebec Inc was woundup in the company and its only asset was a investment in a company subject to significant influence 6483976 Canada Inc in an amount of 128788 and its only liability was an advance p ayable to F orage Orbit Inc of 100000 On January 30 2007 the company transferred to the parent an investment in Eenou Drilling Inc in the amount of 25000 as consideration of an advance in the amount of 25000 14 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 January 31 2007 the company has accounts receivable in US dollars for an amount of 15519 3 January 31 2006 239234 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 One major customer represents 12 2006 17 of the companys trade accounts receivable and two customers represents 23 of the contract revenue for the year ended January 31 200 7 2006 10 Interest rate risk A significant part of the longterm debt bears interest at variable rates and was reimbursed immediately after yearend Conseq uently the cash flow exposure is not significant F air value The fair value of cash accounts receivable bank overdraft accounts payable and accrued liabilities and client deposits is ap proximately equal to their carrying values due to their shortterm maturity The fair value of longterm debts bearing interest at prime rate is approximately equal to their carrying value due to their in terest rate based on the market rate The fair value of the investment in ExplorateursInnovateurs de Qu ebec inc could not be determined due to the fact that it is a private company The fair value of the retractable shares could not be determined due to absence of specific terms of redemption 15 SEGMENTED INFORMA TION The company operates in four geographic segments Drilling Canada surface Drilling Canada underground Drilling Central and South America other countries surface and manufacturing The services provided in each of the reportable drilling segment s are essentially the same The accounting policies of the segments are the same as those described in Note 3 Management evaluates F41