FOR AGES GAR ANT FR ERES INC BALANCE SHEETS September 30 June 30 2006 2006 2005 restated restated CURRENT A ccounts receivable Note 4 3534382 4011428 3869914 A dvances to the parent company noninterest bearing 409193 409193 365129 A dvances to a company under common control noninterest bearing 673400 468900 353937 Income taxes receivable 33670 Inventories 3007416 3037324 2464868 P repaid expenses 101609 27085 32011 7726000 7953930 7119529 LONG TERM INVESTMENTS portfolio at cost fair value 39379 38226 CAPIT AL A SSETS Note 5 2939717 3166571 3458485 10665717 11120501 10616240 LIABILITIES CURRENT Bank overdraft 158211 320136 748477 Bank loan Note 6 2750000 2750000 A ccounts payable and accrued liabilities 1909701 2588378 1845397 Income taxes payable 389950 515553 A dvances from a private trust fund noninterest bearing October 2006 3476611 Bonuses payable 1150000 Current portion of longterm debt Note 7 50456 240448 247874 5984929 6414515 6741748 LONG TERM DEBT Note 7 27468 894942 1125193 FUTURE INCOME T A XES Note 9 245856 256902 175352 6258253 7566359 8042293 SHAREHOLDERS EQUITY Share capital Note 8 1253100 253100 253100 R etained earnings 3154364 3301042 2320847 4407464 3554142 2573947 10665717 11120501 10616240 APPRO VED B Y THE BO ARD Signed M ICHEL M ATHIEU Signed J AMES C J OHNSON Director Director F47