PILOT PARTNERS Chartered Accountants

level 10, Waterfront Place 1 Eagle Si, Brisbane 4000

PO 80x 7095 Brisbane 4001 QCleenS\8nd Ai.Jstroli2

P +61 730231300 F +51 732291227

pilotpartners.com.au

Orford Refrigeration Pty Ltd (In Liquidation) ACN 009 790 265

Formerly trading as "Orford Refrigeration" and "Orford Sign Shop" (,'Orford Refrigeration")

Report to Creditors

We refer to our Report to Creditors dated 13 October 2011 and now provide creditors with an update on the winding up.

1. ANNUAL MEETING OF CREDITORS

1.1 We advise that the meeting of creditors for the abovenamed company will be held Pilot Partners, Level 10, 1 Eagle Street, Brisbane on Monday, 6 August 2012 at 11:00am.

1.2 The following documents are enclosed for your attention:

• Notice of Meeting; • Form 532 - Appointment of Proxy; and • Form 535 - Formal Proof of Debt or Claim.

1.3 You do not have to attend this meeting and your non-attendance will not affect the validity of your claim against the company. We will continue to keep you updated as to the progress of the administration.

1.4 Should you wish to appoint some person or the chairman to vote at the meeting on your behalf please complete the attached Proxy Form (Form 532).

1.5 If you have not already done so, please complete the attached Proof of Debt Form (Form 535) and return same to our office prior to the meeting, together with copies of the necessary supporting documentation (eg. invoices, statements, contract details, etc.) to support your claim. The Proof of Debt Form will be used for the purposes of voting at the aforementioned meeting. Please note that you are only required to submit a Form 535 if you have not already done so.

1.6 It is important that the completed Proxy Form and the Formal Proof of Debt Form (if applicable) are forwarded to our office (on or before 3 August 2012). This can be done by facsimile, post or delivery and will minimise any delay with the commencement of the meeting.

2. ASSET REALISATIONS

2.1 Debtors

Subsequent to our last report, the factored and unfactored debtor ledgers were reconstructed from the date of our appointment due to allocation errors found in the debtor

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ledgers previously prepared by the company. The opening debtor balance was reduced significantly as the intercompany debt of approximately $697,000 for Orford Sign Shop was recorded as a debtor.

We previously noted that the Sign Shop business was not accounted for separately in the company's books and records. Our investigations show that there was an intention to account separately for the Sign Shop's activities, but this was never implemented.

Below is a summary of the debtor collections as at 17 July 2012 with the revised debtor balance as at the date of liquidation:

Total debtors per company's records 3,821,237 179,870 4,001,107 Less: Total debtors collected by Liquidators 3,127,287 95,325 3,222,612 Offsets/Adjustments 641,097 84,545 725,642 Balance due 52,853 Nil 52,853

We note $392,168 of the Offsets/Adjustments amount relates to counterclaims made by one of the company's major debtors, Coca Cola Amatil ("CCAH

), against the company. We have reviewed the supporting documentation provided and adjudicated on CCA's claim and allowed the offset. CCA's claim is comprised of the following components:

1) $159,284 for penalty coolers owing to CCA as a result of penalty points accrued. A penalty points system was set up by CCA to avoid the company being late on its deliveries.

2) The balance of CCA's claim was in respect of spare parts in lieu of warranty. An agreement was entered into between the company and CCA whereby CCA forgoes general warranty for spares part in lieu.

The remaining Offsets/Adjustments relate to the following:

• Debtors who were also listed as creditors of the company had an entitlement to offset.

• A substantial quantity of fridge units had not been delivered as at the date of our appointment and was held with various transport companies. Debtors have been credited where delivery did not occur. The status of the goods held at transport companies is discussed at section 2.4 of this report.

• Where appropriate, an adjustment was made for warranty claims made but not recorded by the company and also minor adjustments were made in some cases for the company's inability to provide warranty on the units.

There are 6 debtors remaining to be collected, all of which have been referred to our solicitors for further recovery action. Difficulties have been encountered as some debtors are non-responsive or have failed to provide supporting documentation for their proposed warranty offset claim. We will continue to pursue the outstanding debtors with a view of settling the outstanding debts as soon as possible.

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2.2 Related Party Loans

2.2.1 We are currently pursuing the following related party loans owing to the company as at March 2011:

(a) Ian Orford (Deceased) - $184,282

A demand letter for the above amount, as shown on the company's management accounts as at March 2011, has been issued to the trustees of the deceased estate of Ian Orford. The trustees have disputed the loan owing on the following basis:

• the loan account was used to pay Ian Orford's salary for superannuation related benefits;

• at the end of each financial year, the loan account was reduced back to nil;

• the amount has remained on the company's management accounts as it was not finalised in preparation for audit of the company's accounts; and

• the loan account should have a nil balance from September 2008.

We will investigate further whether there is a basis for the above dispute. We have been unable to determine if the deceased estate of Ian Orford has been finalised. Our investigations will continue in this regard.

(b) Maureen Orford - $20,361

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The company's management accounts record the above amount as owing to the company as at March 2011.

We have not issued a demand to Mrs Orford in respect of this loan as she had lodged a claim against the company for $809,000 for funds allegedly loaned to the company.

We have reviewed the supporting documents provided and determined that Mrs Orford does not have a claim against the company. The payments totalling $800,000 she has claimed were transferred from Orose Pty Ltd ATF Ian & Maureen Orford Superannuation Fund to another related entity, Chilimint Pty Ltd C'ChillimintU) on 13 August 2009 and 28 August 2009, which therefore do not constitute a loan to the company.

Funds totalling $800,000 were then transferred from Chilimint to the company. Our investigations have shown that the $800,000 loan from Chilimint has already been reflected in the loan with Chilimint.

We will continue to pursue Mrs Orford in respect of the above loan.

Please refer section 3.4 of this report for voidable payments to be pursued from Mrs Orford.

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(c) Orford Refrigeration (NZ) Pty Ltd - $114,651

We have been advised by one of the directors of this company, Dean McKinlay, that this company was wound up in March 2011 as the company ceased to trade in or around June 2010. Mr McKinlay has advised that Orford Refrigeration (NZ) pty Ltd did not have any assets.

Our investigations have revealed that this company is still registered. We have requested copies of financial statements for this company from the company's external accountants and they have advised that financial statements have not been prepared for a number of years due to the cessation of trading.

As there appears unlikely to be any recovery from Orford Refrigeration (NZ) Pty Ltd, we do not intend to pursue this loan any further.

(d) Orford Bros Pty Ltd ATF Orford Logistic Trust - $117,145

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In our last report to creditors, we advised that payments of approximately $3.5 million appear to have been paid by the company to Orford Bros. Our investigations have revealed that these payments were made directly to employees in respect of wages and other entitlements in the ordinary course of business. Employees wages were paid by the company in batches and were labdled as "Orford Bros". we have confirmed no funds were actually paid to Orford Bros pty Ltd.

The company's balance sheet as at March 2011 shows that a loan of $117,145 is owing to the company.

It is noted that the only director remaining for this company is ran Orford (deceased). On 4 August 2011, Liam Orford, Maureen Orford and Corby Orford resigned as directors of this company. The other directors, Dean o rfo rd , Gary Fitzgerald and Brendan Graham resigned as directors on 6 October 2011 and we were advised by Dean Orford that all three directors were unaware that they were listed as directors ofthis company.

A demand letter has been issued and the trustees for the deceased estate of Ian Orford, who have disputed the loan on the following basis:

• the figures in the management accounts are incorrect and have been since 2003; and

• there are no actual cash transactions for this loan.

Our investigations have shown that the 2008 financial accounts for the Orford Logistics Trust, signed off by the directors, show a loan owing to the company in the amount of $171,047.10 however the trust does not appear to own any assets. Our investigations have revealed that the trust has a bank account with a balance of approximately $40,000 as at 18 July 2012.

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We will conduct further investigations to identify any movements of the loan from 30 June 2008 to determine if a loan remains owing to the company as at the date of liquidation and options available to the company, as the sole shareholder of the trustee company, to recover the debt. In the event that other debts exist in this company, it may need to be liquidated. Our investigations will continue in this regard.

(e) IM Realty pty Ltd (nIM Realty") - $3,489,956

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The company's records indicate that a loan of $3,489,956 is owing to the company as at March 2011.

IM Realty has previously lodged a claim against the company in the amounts of $1,156,976 for a loan owing by the company to IM Realty of $99,458 and an estimate of the company's Westpac debt guaranteed by IM Realty in the amount of $1,057,518. Supporting documentation in respect of their claim against the company has been requested from IM Realty and payment of the undisputed amount of $2,332,980. No documents or payments have been forthcoming to date. Our investigations will continue in this regard.

We note IM Realty is the registered owner of the following properties:

Lot 2, RP 117406, County of Aubigny, Parish of Dray ton, Title Reference 14368104 (Street address unknown) 79 Vacy Street, Toowoomba

Anzac Avenue, Toowoomba 86 Anzac Avenue, Toowoomba 81 Vacy Street, Toowoomba 71 Vacy Street, Toowoomba (also known as 256 Herries Street)

Statutory charge by the Commissioner of State Revenue

Statutory charge by the Commissioner of State Revenue Westpac Westpac Westpac Westpac

Receivers and Managers were appointed by Westpac in November 2011 over properties which are encumbered to the Bank.

A formal marketing campaign for the company's former site will commence in early August 2012, with submissions closing in early September 2012. The Receivers have advised that delays were encountered as contamination and other property reports were sought to assist in the sale of the property.

Our investigations have revealed that IM Realty has recently received demands from its creditors, in particular the Australian Taxation Office, and the directors are considering placing the company into Voluntary Administration. We will continue our investigations as to whether an external administrator is appointed to IM Realty and take the necessary actions in due course, should one be appointed.

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(f) Dean Orford - $22,471

As previously advised, Dean Orford has lodged a claim against the company for approximately $300,000 in respect of his employment termination which he claims was agreed with his late father, Ian Orford. The termination agreement comprised of a $300,000 cash payment, various goods and reimbursement of work expenses incurred.

We have reviewed the documentation provided by Dean Orford and determined that the $300,000 cash payment is an agreement made between Dean and Ian Orford, therefore it is not a claim against the company. Dean Orford has also advised that he has not received various items of goods promised to him. The value of these items, if any, is yet to be determined however, these will be claims against the company, along with the work expenses once they have been particularised.

Subject to the quantum of his claims, it appears Dean Orford is likely to have a right of offset against the above loan. The balance, if any, will be pursued.

(g) Liam Orford - $24,894

The company's records indicate a loan of $24,894 is owed to the company as at March 2011.

We advise Liam Orford has lodged a claim against the company for a loan allegedly made to the company in the amount of $180,000. Mr Orford has disputed the loan owing by him to the company on the following basis:

• the loan account was used for various company expenses processed by employees on his company credit card; and

• the company's accounts are incorrect as a result of the "inaccurate and unfinished accounting practices at Orfords".

The supporting documentation provided to evidence Mr Oford's claim against the company for funds loaned are insufficient. We will request Mr Orford to provide further and better evidence to support his claim.

A title search conducted revealed that Liam Orford jointly owns a property with his spouse, which is subject to a mortgage held by St George Bank Limited and a caveat held by Onesteel Trading Pty Ltd. We note he has substantial claims from creditors holding personal guarantees.

We will undertake further investigations to determine the recoverability of this loan.

2.3 Plant & Equipment & Motor Vehicles

2.3.1 Realisation of the company's plant and equipment and motor vehicles has now been finalised. The gross sale proceeds received totals $1,794,808.

2.3.2 The net proceeds from the sale of these assets are subject to the fixed and floating charge held by Westpac. These funds have been remitted to Westpac.

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2.3.3 A number of items of IT equipment are yet to be realised as these items are required for our ongoing investigations. The expected sale proceeds from these items are minimal. The net proceeds from the IT equipment will be remitted to Westpac pursuant to their security.

2.4 Stock/Finished Goods on Hand

2.4.1 All stock and finished goods located at the company's premises have now been realised. Gross proceeds from stock and finished goods are $421,330 and $528,518 respectively. No further realisation from these items are anticipated.

2.4.2 We previously advised that transport companies engaged by the compa:oy have claimed liens over goods stored at their depots at the date of liquidation for debts owing. The debt owing to these transport companies at the date of liquidation was in the vicinity of $255,000.

2.4.3 At the date of liquidation, approximately 182 fridge units with a cost price of approximately $402,000 and various spare parts of approximately $41,000 (to the extent we were able to identify these) were stored at the depots.

2.4.4 We have requested an accounting of the sale proceeds for finished goods sold to by the transport companies subject to their liens to date with surplus funds to be remitted to our office.

2.4.5 One of the transport companies has recently provided us with a MYOB extract of the company's transactions with them which shows net sale proceeds of approximately $187,900, which equates to a realisation of approximately 47% of cost. We note that $35,743 of the net sale proceeds were for sale of goods to "The Orford Group" and "Orford Sales" in the period between November 2011 and February 2012.

We will undertake a further review of the information provided however it would appear there does not appear to be any surplus funds to be remitted to this administration from this transport company.

2.4.6 We are yet to receive an accounting from the other transport company.

2.5 Intellectual Property (nIP")

2.5.1 As creditors may be aware, the company's intellectual property was sold by the directors to a related entity, Roderick Abif Pty Ltd ("Roderick Abif"), a day prior to the company being placed into liquidation. The directors of the company are also directors of Roderick Abif.

2.5.2 The purchase price for the IP was to be determined by a valuation undertaken by an independent valuer, with the purchase price to be paid over a 2 year period. As advised in our previous report, the valuation for the company's IP was completed in August 2011. The purchase price pursuant to the agreement entered into prior to our appointment is unlikely to be paid.

2.5.3 The IP falls under Westpac's security and the Liquidators have been engaged by the Bank as its agent to deal with the recovery of the asset. Our solicitors have been liaising with solicitors acting for Roderick Abif with a view of voiding the IP sale agreement.

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2.5.4 We have demanded the return of all of the company's IP from Roderick Abif. Some IP records were returned however a number of trade marks and patents are yet to be transferred back into the company's name despite our numerous requests. We have also sought a written undertaking from Roderick Abif that the company's IP will not be infringed however this has not been forthcoming.

2.5.5 An offer of $5,000 made by Roderick Abif to retain the IP was rejected by the Liquidators and Roderick Abif have since requested that a counter offer be made in order for them to retain the IP. Our solicitors have recommended that a counter offer for an amount equal to the highest offer received for the IP to date be made. We do not have instructions from the secured creditor to make a counter offer. We have demanded the return of the company's IP prior to considering making any counter offers.

2.5.6 A formal marketing campaign for the sale of the IP has not been undertaken as some components of the IP are still to be recovered from Roderick Abif. We have reason to believe that certain items of the IP continues to be used by Roderick Abif and they are yet to transfer various trademark and patents back into the company's name despite our numerous requests.

2.5.7 As a result of the directors actions and the period of time that has lapsed, the value of the IP would be diminished significantly, if any.

3. CONDUCT OF THE WINDING UP

3.1. Unfair Preferences (Section 588FA of Corporations Act 2001 ("the Act"»

3.1.1. Subsequent to our last report, 7 demands for unfair preference claims totalling $2,321,793 has been issued to various creditors.

3.1.2. Numerous creditors are defending their position using the running balance defense and that payments were received in good faith as they were not aware that the company was in financial difficulties. It should be noted that legal action may be required in pursuing recovery of these transactions.

3.1.3. Demands for further potential unfair preference claims of $530,000 against 16 creditors will be issued in due course.

3.2. The Company's Activities in China

3.2.1. Our last report stated that the company had a long standing interest seeking production from China.

3.2.2. We noted in our last report that payments totalling $80,000 were made to Chinese manufacturer, Qindao Haili Commercial Appliances Co. ("Qingdao") as follows:

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Date Paid 1 April 2011 8 April 2011 15 April 2011 21 April 2011 Total

Amount $20,000 $20,000 $20,000 $20,000 $80,000

3.2.3. These payments were coded to research and development costs in the company's accounting system.

3.2.4. The payments to Qingdao may constitute voidable transactions recoverable by a Liquidator.

3.2.5. We previously noted there is little documentation available regarding the nature of the transactions or any evidence to suggest that these payments are linked to the directors' new business venture.

3.2.6. We are of the opinion that the prospects of recovering these payments are minimal for the following reasons:

• Cross border issues; • Significant legal costs are required to pursue these payments; • Qingdao is unlikely to have knowledge of the company's solvency; and • There is insufficient evidence for us to pursue these payments.

3.2.7. Based on the above, it appears uncommercial for us to pursue these payments further, however, the above transactions may assist in our investigations and any recovery actions against the directors in respect of the phoenix activity.

3.3. Chilimint

3.3.1. The records of the company show the company is indebted to Chilimint for $1,013,273 as at March 2011.

3.3.2. We advised in our last report that $800,000 was loaned by Chilimint to the company in August 2009. Our investigations revealed that these funds were initially transferred from Ian and Maureen Orford Superannuation Fund (refer section 2.2 - Maureen Orford above).

3.3.3. Our investigations have identified transactions totalling $380,887 (cash payments of $217,000 and sale of refrigeration units at cost price for $163,88 entered into with Chilimint in the week preceding liquidation.

3.3.4. The reduction in Chilimint's loan by $380,887 in the week preceding liquidation is likely to constitute an unreasonable director-related transaction, uncommercial transaction and an unfair preference pursuant to sections 588FA, 588FB and 588FDA of the Act.

3.3.5. We further note that by entering into the transactions with Chilimint, the directors may have breached their duties as outlined in sections 180 to 184 of the Act, as they have not acted in the best interests of the company.

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3.3.6. A title search conducted does not reveal any properties owned by the company.

3.3.7. A demand to Chilimint will be issued in respect of the above voidable transactions.

3.4. Maureen Orford

3.4.1. We advised in our last report that demands had been issued to Mrs Orford in respect of payments totalling $223,000 made to her between November 2010 and May 2011.

3.4.2. Mrs Orford had disputed our demand as she claimed the debt owing by the company to her exceeded the amount demanded. We have reviewed the documentation provided by Mrs Orford in respect of her claim against the company and have determined that she does not have a valid claim against the company. Refer section 2.2.1(b) ofthis report for further details.

3.4.3. We have instructed our solicitors to continue pursuing Maureen Orford for the payments made to her.

3.5. Insolvent Trading

3.5.1. We stated in our last report to creditors that the company appeared to have been trading whilst insolvent since mid-2008 and note that our position has not changed.

3.5.2. Based on known creditor claims to date, excluding claims by related parties, the potential claim in respect of insolvent trading against the directors is likely to be in the vicinity of $5 million to $9 million.

3.5.3. The director's have a duty to prevent insolvent trading by the company. If it is proven that a director is guilty of an offence it may be possible to recover from the director an amount equal to the loss or damage suffered by the company.

3.5.4. As previously noted, our enquiries have revealed as follows:

• Corby Orford has no registered land holdings in her name.

• Liam Orford and his spouse jOintly own a property which is mortgaged. In addition, we note Onesteel Trading Pty Ltd a major creditor of the company has lodged a caveat over Liam Orford's interest in the property in respect of their debt.

• Both directors have provided personal guarantees to major creditors including a significant debt owing to the secured creditor, Westpac.

• They appointed reconstruction experts in March 2008 to assist with the restructure of the company.

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3.5.5. In order to recover funds from the company's directors or associated entities, bankruptcy or liquidation proceedings may need to be undertaken.

3.5.6. We do not propose to commence an insolvent trading action against the directors until we have finalised our investigations and determined that there are assets available to satisfy any claim.

3.6. Possible Public Examination

3.6.1. There are numerous matters outlined in this report which require further explanation and investigation. One option available to the liquidators is to make an application to the Court to publically examine the directors, officers and key staff in respect of the company's affairs pursuant to section 596B of the Act. Such examinations have been found to be useful in order to obtain further records or explanations regarding transactions entered into by the company.

3.6.2. At this stage, there is no requirement for us to conduct a public examination. We would not propose to conduct such an examination until such time as we have determined that further information or documentation, if any, is required to assist with our recovery actions.

3.7. Reports to ASIC

3.7.1. A report has been lodged with ASIC in accordance with section 533 of the Act which outlines any offences that may have been committed by the company's officers. ASIC have advised that no further action will be taken by them however the Liquidators are able to lodge a supplementary report in respect of the various offences identified. We intend to lodge a supplementary report pursuant to section 533 of the Act and are currently in the process of finalising the report.

4. RECEIPTS AND PAYMENTS

4.1 Attached is a summary of the Liquidators' receipts and payments for the period 6 May 2011 to 18 July 2012.

4.2 Pursuant to section 539(5) of the Act, we advise that our account of receipts and payments has been lodged with ASIC for each 6 month period since our appointment.

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5. LIKELY RETURN TO CREDITORS

5.1 Below is a summary of the estimated return to the various classes of creditors:

Estimated Statement of Position

Fixed asset subject to secured creditor'S charge:

Estimated Realisations: Plant & Equipment Motor Vehicles Factored Debtors Intellectual Property Total Estimated Realisations

Less: Debt owing to Secured Creditor (as at 9 May 2011) Costs of realising and maintaining fixed assets

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Estimated Surplus/(Shortfall) to Secured Creditor

Floating assets: Estimated Realisations: Unfactored Debtors Stock/Spare Parts Finished Goods Insolvent Trading Claim Unfair Preferences Related Party Loans Voidable Transactions Total Estimated Realisations Less: Liquidators' Disbursements & Remuneration (Paid) Estimated Liquidators' Disbursements (incl legal costs) Estimated Liquidators' Remuneration

Amount Available for Priority Creditors

Debt owing to Priority Creditors: Wages & Super Annual Leave (including leave loading) Long Service Leave Payment in Lieu of Notice Redundancy

Total Priority Creditors Estimated Return to Priority Creditors

Amount available for Unsecured Creditors

Unsecured Creditor Claims

Estimated Return to Unsecured Creditors

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Best Case $

1,715,983 78,825

3,238,303 Unknown

5,033,111

8,056,277 870,070

8,926,347 (3,893,236)

95,325 421,330 528,518

Unknown 2,000,000

600,000 Unknown

3,645,173

706,601 35,000

200,000 941,601

2,703,572

324,025 457,365 521,779 402,004 983,822

2,688,996 1.00

14,576

13,377 ,833

0.001

Worst Case $

1,715,983 78,825

3,150,645 Nil

4,945,453

8,056,277 890,000

8,946,277 (4,000,824 )

95,325 421,330 528,518

Unknown Nil Nil Nil

1,045,174

706,601 140,000 250,000

1,096,601

Nil

324,025 457,365 521,779 402,004 983,822

2,688,996 Nil

Nil

13,377,833

Nil

5.2 We are aware of unsecured creditor claims of approximately $13,377,833 to date, including related entities. The exact amount due to unsecured creditors will not be determined until such time as all creditors have lodged their Proof of Debt in the administration, and we have completed the process of adjudication.

5.3 The above estimate indicates that in the best case scenario, priority creditor claims will be fully paid whilst a return of approximately 0.1 cents in the dollar is anticipated for unsecured creditors. We note that the above estimate is subject to recovery of unfair preferences and potential voidable transactions. If no such funds are realised, there will not be a return to unsecured creditors.

5.4 It should be noted that our recovery action will need to be finalised and/or settled before being in a position to estimate the likely return from unfair preferences and voidable transactions. Significant legal costs may be required in pursuing recovery of these transactions if these claims are defended.

6. LIQUIDATORS' REMUNERATION

6.1 Please find attached our Remuneration Report.

6.2 At the meeting of creditors to be held on 6 August 2012, creditors will be asked to approve the remuneration of the Liquidators, their partners and staff as follows:

• 10 October 2011 to 18 July 2012 in the amount of $223,060.75(including GST); and • Prospective remuneration from 19 July 2012 to May 2013 a maximum of $275,000

(including GST).

6.3 We anticipate our remuneration over the course of the next ten (1) months of the liquidation to be in the order of $275,000.00 (including GST) for the following matters:

• Pursue demands issued for unfair preference claims and assess creditors' defense; • Issue a further 16 demands for unfair preference claims; • Preparation of solvency report and commence insolvent trading action, if required; • Preparation and lodgement of a supplementary 533 report with ASIC; • Pursue voidable transactions (Maureen Orford, Chillimint, etc); • Further investigate the recoverability of related party loans; • Conduct a public examination of the directors, if required; and • Calculation and payment of a potential priority dividend, subject to sufficient funds

being available.

6.4 Work undertaken to date is detailed in the attached Remuneration Report and throughout th is report.

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7. FINALISATION OF THE LIQUIDATION

7.1 We will expedite the finalisation of this administration pendi"g:

a) Finalise collection of the company's outstanding debtors and commence legal action if required;

b) Review the accounting of sale proceeds of finished goods subject to liens by transport companies;

c) Reconstruct loans and recovery of the related party loans; d) Recovery of payments made to Maureen Orford considered to be void and recoverable

pursuant to section 588FE of the Act; e) Investigate payments made and fridges sold to Chilimint and commence recovery

action; f) Brief solicitors and assist them with legal actions on foot; g) Settling legal matters with solicitors; h) If sufficient funds exist from realisations, calculate and pay a dividend to priority

creditors; i) Conducting a public examination of the company's officers and other parties involved in

the identified voidable transactions, if required; j) Conducing an insolvent trading action against the directors, if required; k) Completion and lodgement with the ATO of Business Activity Statements as required; I) Completion and lodgement with the ASIC of six monthly form 524's "Summary of

Receipts and Payments" until the administration is finalised; m) Attend to all statutory matters; n) Convene final meeting of creditors, if required; and 0) Application to the ASIC to have the company deregistered.

Should you have any queries in relation to this matter or information that may assist in our investigations, please do not hesitate to contact Liz Yang (eyang@pilotpartners.com.au) or Cameron Woodcroft (cwoodcroft@pilotpartners.com.au) of this office.

Dated this 20th day of July 2012.

NIGH MARKEY For and on behalf f the joint and several Liquidators

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CORPORATIONS ACT 2001

NOTICE OF MEETING OF CREDITORS PURSUANT TO SECTION 508(1)

Orford Refrigeration Pty ltd (In liquidation) ACN 009 790 265

Formerly trading as "Orford Refrigeration" and "Orford Sign Shop"

NOTICE is hereby given pursuant to Section 508 of the Corporations Act 2001, that a Meeting of Creditors of the abovenamed company will be held at the offices of Pilot Partners, Level 10, 1 Eagle Street, Brisbane, on 6 August 2012 at 11.00am.

Agenda: (i) To determine whether a quorum exists; (ii) To consider the Liquidators' Report to Creditors and to receive and discuss any

recommendations of the Liquidators; (iii) To consider the remuneration of the Liquidators for the period 10 October 2011 to 18

July 2012 in the amount of $223,060.75 (GST inclusive); (iv) To consider the future remuneration of the Liquidators; (v) Questions to the Liquidator; (vi) Any other business.

Creditors are advised that the Liquidators' account of receipts and payments are attached.

DATED this 20th day of July 2012.

NIGEL MARKE For and on beh If of the joint & several liquidators

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FORM 532 Regulation 5.6.29

Corporations Act 2001

Australian Company Number: 009 790 265

APPOINTMENT OF PROXY

*IJ*We ........................................................... (if a firm, strike out "I" and set out the full name of the firm) of ................................................... (address), a creditor of Orford Refrigeration pty Ltd (In Liquidation) appoint ....................................... (name, address and description of person appointed) or in his or her absence ....................................................... as *myJ*our *general/*special proxy to vote at the meeting of creditors to be held on 6 August 2012 or at any adjournment of that meeting (if a special proxy add the words "to vote for" or the words "to vote against" and specify the particular resolution).

Dated the day of

Signature of individual (Individual creditors only)

OR

20 .

if a company signature of 2 directors, OR 1 director and 1 secretary OR a representative properly authorised pursuant to Section 250D of the Corporations Act 2001

CERTIFICATE OF WITNESS

(This certificate is to be completed only if the person giving the proxy is blind or incapable of writing. The signature of the creditor, contributory, debenture holder or member must not be witnessed by the person nominated as proxy)

I .................................................... (name), of .......................................... (address), certify that the above instrument appointing a proxy was completed by me in the presence of and at the request of the person appointing the proxy and read to him or her before he or she signed or marked the instrument.

Dated the

Signature of Witness Description Place of residence

*Omit if not applicable

379797-1

day of 20 .

Australian Company Number: 009 790 265

FORM 535 Subregulation 5.6.49(2) Corporations Act 2001

FORMAL PROOF OF DEBT OR CLAIM (GENERAL FORM)

To the Liquidators of Orford Refrigeration Pty Ltd (In Liquidation)

1. This is to state that the company was on 6 May 2011, and still is, justly and truly indebted to ..................................................................... for $ ................................ and ......................... cents.

Date Consideration Amount Remarks (state how the (include details of

debt rose) $ c voucher substantiating

payment)

2. To our knowledge or belief the creditor has not, nor has any person by the creditor's order, had or received any satisfaction or security for the sum or any part of it except for the following:

Date Drawer Acceptor Amount Due Date $ c

*3. We are employed by the creditor and authorised in writing by the creditor to make this statement. We know that the debt was incurred for the consideration stated and that the debt, to the best of our knowledge and belief, remains unpaid and unsatisfied.

*4. We are the creditor's agent authorised in writing to make this statement in writing. We know that the debt was incurred for the consideration stated and that the debt, to the best of our knowledge and belief, remains unpaid and unsatisfied.

Dated

Signature Occupation Name Address Phone

day of 20

*Do not complete if this proof is made by the creditor personally.

ORFORD REFRIGERATION PTY LTD (IN LIQUIDATION) ACN 009790 265

FORMERLY TRADING AS "ORFORD REFRIGERATION" AND "ORFORD SIGN SHOP"

Receipts

SUMMARY OF RECEIPTS AND PAYMENTS FOR THE PERIOD 6 MAY 2011 TO 18 JULY 2012

Cash at Bank (Unfactored Debtor Receipts & Prepaymenls) Cash on Hand Employee Cash Float GEERS Advance GST Refund interest Income Pre-Appointment Debtors (Factored) Pre-Appointment Debtors (Unfactored) Refund Sale of Finished Goods Sale of Motor Vehicles Sale of Plant & Equipment Sale of Spare Parts Sundry Receipts

Total Receipts

Payments

Agent's Commission Asset Realisation Costs Bank Fees Cleaning Debt Collection Expense Electricity & Gas GST GEERS Distribution to Employees Insurance Interest ITlWebsite Costs Leasing Legal Fees Liquidators' Disbursements Liquidators' Remuneration Locksmith Mail Redirection PAYG Withholding Tax Payment to Secured Creditor - Factored Debtor Receipts Payment to Secured Creditor - Fixed Asset Realisations Post-ApPointment Wages and Superannuation Refunds Reversal of Deposit Security Storage Sundry Expenses Telephone Transport Valuation WorkCover

Total Payments

Net Position

Represented by Cash at Bank Cash at Bank - At Call Debtor Finance Facility Total

$

$ $ $ $

Total $

27,635.18 652.50

1,000.00 2,437,383.75

19,860.00 10,066.40

3,127,287.43 95,325.34 17,065.50

528,518.24 78,824.90

1,715,983.00 421,330.11

9,568.08

8,490,500.43

196,916.82 170,208.89

351.70 25,569.35

8,077.17 36,762.51

155,716.00 1,985,771.75

33,234.86 410.27

15,220.75 614.67

52,484.39 31,445.52

675,156.36 1,749.83

49.00 454,225.00

3,088,409.70 995,463.66

25,340.87 8,950.03

693.00 19,611.45 11,785.23

312.31 15,620.03 2,168.21

11,385.00 1,607.59

8,025,311.92

465,188.51

22,850.86 440,023.21

2,314.44 465,188.51

REMUNERATION REPORT

Orford Refrigeration pty Ltd (In Liquidation) ACN 009 790 265

PILOT PARTNERS Chartered Accountants

Level 10, Waterfront Place 1 Eagle St, Brisbane 4000

PO 80x 7095 Bnsb,me 4001 Queensl,md Austraha

P +61 730231300 F +51 '7 3229 1227

pitotpartnefs.com,au

Formerly trading as "Orford Refrigeration" and "Orford Sign Shop" ("the Company")

In accordance with the Insolvency Practitioners Association of Australia Code of Professional Practice and the requirements of the Corporations Act 2001 ("the Act"), we set out below our remuneration report.

This report is set out as follows:-

1. Liquidators' Remuneration 2. Description of Work 3. Disbursements 4. Queries and Information Sheets

1. Liquidators' Remuneration

1.1 The Liquidators' remuneration can be calculated by a number of methods such as time based, quoted, fixed fee, percentage of assets or on a contingency basis as follows:

Time based I hourly rates This is the most common method. The total fee charged is based on the hourly rate charged for each person who carried out the work multiplied by the number of hours spent by each person on each of the tasks performed.

Fixed Fee The total fee charged is normally quoted at the commencement of the liquidation and is the total cost for the liquidation. Sometimes a Practitioner will finalise a liquidation for a fixed fee.

Percentage The total fee charged is based on a percentage of a particular variable, such as the gross proceeds of assets realisations.

Contingency The practitioner's fee is structured to be contingent on a particular outcome being achieved.

1.2 We propose to charge on a time basis as:

o It ensures that creditors are only charged for work that is performed. Our time is recorded and charged in six minute increments.

IMM!..

• We are required to perform a number of tasks which do not relate to the realisation of assets, for example responding to creditor enquiries, reporting to ASIC, distributing funds in accordance with the provisions of the Act.

o We are unable to estimate with certainty the total amount of fees necessary to complete all tasks required in this administration.

!'Wit " ~ t'i"j'l ",,,,'k!/ P,i'>t t,t'f. il Pty LV.! -'le,,; le;:. ).37 vGl {·S":'~ 11.I.ll~;1. 9-'6 L,,:b i,ty i'~1 ,'J~ l'v 0 "('WI~'O Dp;>rc,·t'(J.r hr :';oft''l~lQ~a' Stardard$ '"'~i!'$!~:'?" Morn!;or of NOKIi! 'nt~HMtlonnl, ~ w~rl\lWW" nntwark of inooplmdent <lccoudmr, <'lOO (;onsultinf, firms.

Orford Refrigeration pty Ltd (In Liquidation) Remuneration Report

1.3 The time based method of calculating the remuneration of the Liquidators is a fee for services rendered according to the time spent on the particular administration by the Liquidators, their partners and their staff. The amount of such fee is in accordance with the role of the particular person, his or her qualifications and experience.

1.4 The scale of rates charge by our firm is attached and is in accordance with the rates charged from time to time by Pilot Partners.

1.5 At the forthcoming meeting of creditors to be held on 6 August 2012, creditors will be asked to approve the remuneration of the Liquidators and to pass the following resolutions:

Liquidators Past Remuneration "That the remuneration of the joint and several Liquidators, their partners and staff be hereby approved for the period 10 October 2011 to 18 July 2012 in the sum of $223,060.75 (including GST) and that the joint and several Liquidators be authorised to draw their remuneration from funds available. "

It is noted that at the meeting of creditors held on 31 October 2011, creditors approved the future remuneration of the Liquidators to a maximum of $285,000.00 (inclusive of GST). The Liquidators have drawn an amount of $223,832.95 in respect of the past remuneration for this period.

We anticipate our prospective remuneration for the liquidation until May 2013 to be in the order of $275,000.00 (including GST).

Liquidators Prospective Remuneration "That the future remuneration of the jOint and several Liquidators, their partners and staff from 19 July 2012 be approved to a maximum of $275,000 (including GST) and that they be calculated by reference to the hourly rates set down from time to time by Pilot Partners; and such remuneration be subject to review by the Court on the application of any creditor and that the joint and several Liquidators be authorised to draw their remuneration from funds available."

2. Description of Work

2.1 The tasks undertaken by the Liquidators can be broadly divided into eight (8) categories as follows:

• Assets • Employees • Investigation • Administration • Creditors • Trade On • Dividend • Statutory

2.2 Attached as Annexures "A1 and A2" is a calculation of the Liquidators' remuneration together with a summary of the type and purpose of work undertaken for the period from 10 October 2011 to 18 July 2012.

2.3 Attached as Annexure "B" is a summary of the type and purpose of future work to be undertaken by the Liquidators over the next ten months of the liquidation.

3. Disbursements

3.1 Disbursements are divided into three types: A, Bl, B2.

380101-1

Orford Refrigeration pty Ltd (In Liquidation) Remuneration Report

• A disbursements are all externally provided professional services and are recovered at cost. An example of an A disbursement is legal fees.

• 81 disbursements are externally provided non-professional costs such as travel, accommodation and search fees. 81 disbursements are recovered at cost.

e 82 disbursements are internally provided non-professional costs such as photocopying and document storage. 82 disb'lrsements are charged at cost except for photocopying, printing and telephone calls which are charged at a rate which is intended to recoup both variable and fixed costs.

3.2 Full details of disbursements on this appointment are as follows:

Disbursements Advertising Courier

Faxes

Postage Photocopying Storage and Destruction (subject to no. of boxes) Storage Retrieval and Refile

Rate (GST Exclusive) At Cost At Cost

$9.46 first page and $2.82 subsequent pages

At Cost $0.75 per page

At Cost $30.00 per box

3.3 Creditor approval for the payment of disbursements is not required, however we must account to creditors. Creditors have the right to question the incurring of the disbursements and can challenge disbursements in court.

4. Queries and Information Sheets

4.1 The above information is provided to assist creditors consider the appropriateness of the remuneration claim that is being made.

4.2 Creditors should feel free to contact the Liquidators' office to seek further information concerning the remuneration claim if they so need.

4.3 The IPA have produced a document entitled "Creditor Information Sheet: Approving remuneration in external administrations" that can be down loaded from the IPA web site www.ipaa.com.au or alternatively a copy can be obtained if you contact this office.

Dated this 20th day of July 2012.

For and on behal of the joint & several Liquidators

380101-1

Pilot Partners Hourly Firm Rates

We have summarised below the rates we, our partners and staff charge:

Description Description of Level of Experience Firm Charge Out Rate $/Hour Rate of Staff (Excl GST) Member Effective

1 Julll 1 Jan 12 1 Jul 12

Appointee / Official Liquidator/ Registered Liquidator and/or 470 470 485 Director Trustee, Partner bringing his or her specialist skills to

the administration or insolvency task.

Associate More than 10 years of experience, at least 5 years at 410 410 410 Director manager level, capable of controlling all aspects of an

administration. May be appropriately qualified to take appointments in his/her own right.

Manager More than 5 years experience in insolvency or 250 - 390 250 - 390 260 - 400 associated fields. Answerable to the appointee but otherwise responsible for all aspects of administration. Experienced at all levels and considered very competent. Control staff and their training.

Supervisor Between 4 to 6 years insolvency experience. Qualified 200 - 250 200- 250 200- 250 CA or CPA program, undertaken IPA course. Will have had conduct of minor administrations and experience in control of 1-3 staff. Assists planning and control of medium to larger jobs.

Senior Between 2 to 4 years insolvency experience or 150 - 200 170 - 200 170 - 200 equivalent. CA or CPA program completed in this period. Assists planning and control of small to medium sized jobs as well as performing some of the more difficult work on larger jobs.

Intermediate 0-2 years. Graduate with little or no professional or 105 - 145 120 - 170 120 - 170 insolvency experience. Required to assist in day-to-day fieldwork under supervision of more senior staff.

Junior Plans to undertake at least part-time degree or 95 95 85 - 100 diploma. Required to assist in administration and day-to-day fieldwork under supervision of more senior staff.

Administrator Appropriate skills including secretarial support, 130 130 130 machine usage, books and records management, recording banking and accounts processing on administrations.

Computer Appropriate skills including machine usage. 95 95 95 Operator

The hourly rates used by us and the partners and staff of Pilot Partners reflect our own particular cost structure, the risks associated with the work undertaken and the type of administration being carried on by us. Our scale of hourly rates recognise the nature of the work, the extent and urgency of the work, the degree of skill required and the degree of responsibility undertaken.

Our firm rates change from time to time (usually annually) to reflect increased costs of operating. The last such increase became effective on 1 July 2012.

Annexure Al

1i~ ;~~~jl!1i7;::; Pilot Staff PosItion $/hour Total Total Task Area

(~ adual ($l Assets CredItors Employees Trade on Investigation Dividends AdmInistration Statutory GST) hours h~ , h~ , h~ , h~ • hrn , h" , h" • h" ,

Ann Fordyce Appointee 470 10.8 5,076.00 0.2 94.00 7.7 3,619.00 0.5 235.00 2.4 1,128.00 · Ann Fordyce Appointee 485 0.6 291.00 0.5 242.50 0.1 48.50 · · Nlgel Markey Appointee 470 119.3 56,071.00 7.2 3,384.00 15.7 7,379.00 0.1 47.00 3.0 1,410.00 83.2 39,104.00 0.6 282.00 7.0 3,290.00 2.5 1,175.00

Nlgel Markey Appointee 485 2.B 1,358.00 · 2.6 1,261.00 0.2 97.00 · lane Leeuwendal Manager 390 1.0 390.00 · . 1.0 390.00 · Elizabeth Yang Manager 250 140.7 35,175.00 35.9 9,225.00 43.7 10,925.00 0.' 225.00 36.7 9,175,00 1.1 275.00 18.0 4,500.00 3.4 850.00

Elizabeth Yang Manager 270 48.0 12,960.00 8.5 2,295.00 18.5 5,022.00 0.1 27.00 15.2 4,104.00 1.1 297.00 2.1 567.00 2.4 648.00

Elizabeth Yang Manager 260 11.0 3,080.00 1.8 504.00 6.7 1,875.00 2.3 644.00 0.2 56.00

Cameron Wood croft Intermediate 150 246.2 36,930.00 27.2 4,080.00 62.4 9,360.00 2.5 375.00 62.4 9,360.00 0.6 90.00 91.1 13,665.00

Cameron Woodcroft Senior 170 23.3 3,961.00 0.5 85.00 0.3 51.00 19.6 3,332.00 · 2.9 493.00 · Cameron Wood croft Senior 185 13.9 2,571.50 · 6.B 1,258.00 7.1 1,313.50 · .

Neil Mitchell Intermediate 140 45.4 6,356.00 0.2 28.00 · 0.3 42.00 44.9 6,286.00

Nell Mitchell Intermediate 150 0.3 45.00 · · 0.3 45.00 · · · Shaun Lu Intermediate 130 0.4 52.00 · · · 0.4 52.00

Angus Boyd Intermediate m 119.2 14,900.00 30.3 3,787.50 26.5 3,312.50 6.4 800.00 18.1 2,262.50 31.1 3,887.50 6.8 850.00

Angus Boyd IntermedIate 130 113.8 14,794.00 28.4 3,692.00 18.2 2,366.00 2.' 377.00 12.1 1,573.00 37.6 4,888.00 14.6 1,898.00

Angus Boyd Intermediate 140 4.0 560.00 1.5 2lD.00 0.' 126.00 0.8 112.00 · 0.6 84.00 0.2 28.00

Patrick Sweeney IntermedIate m 1.0 125.00 0.3 37.50 0.6 75.00 · · 0.1 12.50

Wlrlya Plukavec Intermediate 120 15.3 1,836.00 · 3.6 432.00 · 4.1 492.00 7.6 912.00

Usa Lochlin Junior 100 2.4 240.00 · · · · · 2.0 200.00 0.4 40.00

Kyle Greenough Junior 85 1.3 110.50 · · · 1.3 110.50

Cralg Seaton Junior 85 1.4 119.00 · 1.4 119.00

Elizabeth Dyett Secretary/WPO 130 19.7 2,561.00 0.1 13.00 7.4 962.00 0.1 13.00 · 7.1 923.00 5.0 650.00

Lucy Dulgnan Secretary/WPO 95 33.9 3,220.50 0.8 76.00 0.4 38.00 · · 32.7 3,106.50

975.7 $202,782.50 143.6 $27,677,50 220.0 $46,888.00 14.60 $2,324.00 3.00 $1,410.00 261.0 $72,531.00 3.40 $944.00 285.9 $43,846.50 44.2 $7,161.50

GST $20,278.25 $2,767.75 $4,688.80 $232.40 $141.00 $7,253.10 $94.40 $4,384.65 $716.15

TOTAL (Including GST) I 975.7 $223,060.75 143.6 $30,445.25 220.0 $51,576.80 14.6 $2,556.40 3.0 $1,551.00 261.0 $79,784.10 3.4 $1,038.40 285.9 $48,231.15 44.2 :p,877.65

.Average hourly rate $228.62 /$ 212.01 , /$ 234.44 I H 175.10 , h 517.00 , /$ 305.69' 1$ 305.41 , ,. 168.70 , 1$ 178.23

\ Orford Refrigeration pty Ltd (In liiquidation)

Remuneration Report

Annexure A2

Orford Refrigeration Pty Ltd (In Liquidation) ACN 009 790 265

Formerly trading as "Orford Refrigeration" and "Orford Sign Shop" ("the Company")

Summary of the type and purpose of work undertaken for the period from 10 October 2011 to 18 July 2012

Task Area Descrintion Includes Plant and Equipment Liaising with valuers, auctioneers and interested parties

Reviewing asset listings

Assets subject to specific All tasks associated with realising a charged asset, including charnes intellectual property Debtors Correspondence with debtors

Reviewing and assessing debtors ledgers Liaisina with debt collectors and solicitors

Stock Conducting stock takes Reviewing stock values

Assets Liaising with purchasers $30,445.25 Liaisin~ with transnort companies reoardino ooods subiect to liens

Other Assets Tasks associated with realisino other assets Leasing Reviewing leasing documents

Liaising with owners/lessors Tasks associated with disclaimina leases

Insurance Identification of potential issues requiring attention of insurance specialists Correspondence with insurers regarding ongoing insurance requirements Reviewing insurance policies Corresoondence with orevious brokers

Creditor Enquiries Receive and follow up creditor enqukies via .... telephone Maintaining creditor enquiry register Review and prepare correspondence to creditors and their representatives via facsimile, email and post CorresDondence with committee of creditors members

Retention of Title Claims Receive notification of creditor's intention to claim Provision of retention of title claim form to creditor Receive completed retention of title claim form Maintain retention of title file Meeting claimant on site to identify goods Adjudicate retention of title claim Forward correspondence to claimant notifying outcome of adiudication

Creditors Secured creditor reporting Preparing reports to secured creditor

Responding to secured creditor's queries $51,576.80 Dealinn with fixed or floatino charoes or both

Creditor reports Preparing reports, circulars, notices to creditors notice of meetings, agendas/ remuneration for fee approval meetina and aeneral reDorts to creditors

Dealing with proofs of debt Receipting and filing POD's when not related to a dividend Corresponding with OSR and ATO regarding POD's when not related to a dividend

Meeting of Creditors Preparation meeting notices, proxies and advertisements Forward notice of meeting to all known creditors Preparation of meeting file, including agenda, certificate of postage, attendance register, list of creditors/ reports to creditors, advertisement of meeting and draft minutes of meeting. Preparation and certificate of resolution of minutes of meetings Resnond to stakeholder nueries and nuestions immediatelv

380101-1

Task Area Description

Employees enquiry

GEERS Employees $2,556.40

Calculation of entitlements

Workers compensation claims Other employee issues

Trade On Trade On Management $1,551.00

Conducting investigation, Searches etc.

Investigation $79,784.10

Legal Matters

Dividend Adjudicating proofs of $1,038.40 debt

Correspondence with others

Document maintenance/file

Administration review/checklist

$48,231.15 Bank account administration

380101-1

Orford Refrigeration Pty Ltd (In Liquidation) Remuneration Report

Includes following meeting Receive and follow up employee enquiries via telephone Maintain employee enquiry register Review and prepare correspondence to creditors and their representatives via facsimile, email and post Preparation of letters to employees advising of their entitlements and options available Receive and prepare correspondence in response to employees obiections to leave entitlements Correspondence with GEERS Preparing notification spreadsheet Preparing GEERS quotations Preparing GEERS distributions Calculating employee entitlements Reviewing employee files and company's books and records Reconciling superannuation accounts Reviewing awards Liaisinq with solicitors reqardinq entitlements Liaising with claimant and their representative in respect of claim

Correspondence with Child Support Corresoondence with Centrelink Liaising with suppliers Attendance on site Review onaoina costs associated with comoanv oremises Searches (ASIC, titles, Motor vehicle, credit file etc.) Meeting with directors Correspondence to directors Demand and collection of c::'mpany books and records Reviewing books and records Conducting and summarising statutory searches Preparation of deficiency statement Review of specific transactions and liaising with directors regarding certain transactions Liaising with directors regarding certain transactions Preparation of investigation file or notes Investigate phoenix company activity by the directors Investigate related party transactions Recovery of unfair preference claims Preparation of supplementary 533 report to ASIC Internal meetings to discuss status of litigation Preparing brief to solicitors Liaising/correspondence with solicitors regarding recovery actions Attending to negotiations Attendina to settlement matters Adjudicating PODs Request further information from claimants regarding POD Preparation of correspondence to claimant advising outcome of adjudication

Other correspondences not specific to other milestones

General administration including 6 monthly administration review Preparation of file notes and internal memos Fiting of documents File reviews Updatinq checklists Preparing correspondence opening and closing accounts Requesting bank statements Bank account or Cash Book reconciliations Correspondence with bank regarding specific transfers Banking, Drawing Cheques / depositing funds Summary of Receipts and Payments

Task Area Description Books and records / storage

Strategic Planning / Review Acpointment

Statutory ASIC Form 524 and other $7,877.65 forms

ASIC, ATO & other statutory reporting (533, BAS etci

380101-1

Orford Refrigeration Pty Ltd (In Liquidation) Remuneration Report

Includes Dealing with records in storage Sending job files to storage Archiving and Storage of records Discussions regarding status of administration Manaqement Review Strateqic Planninq Statutory Lodgements Preparing and lodging ASIC forms including SOS, 524, 508, 911 Lodging Minutes of meeting of creditors Correspondence with ASIC reqardinq statutory forms Taxation ego Preparing BAS

Annexure B

Orford Refrigeration Pty Ltd (In Liquidation) Remuneration Report

Orford Refrigeration Pty Ltd (In liquidation) ACN 009 790 265

Formerly trading as "Orford Refrigeration" and "Orford Sign Shop" ("the Company")

Summary of the type and purpose of work undertaken for the period from 19 July 2012 to May 2013

Task Area Description Includes Plant and Equipment Liaising with valuers/ auctioneers and interested parties

Reviewing asset I1stings Assets subject to specific All tasks associated with realising a charged asset including

Assets charqes intellectual property [$10,000] Debtors Reviewing and assessing debtor ledgers

Liaising with debt collectors and solicitors Stock Reviewing stock values

Liaisina with transDort comoanies reqardinq aoods 5ubiect to liens other Assets Tasks associated with realising other assets

Creditor Enquiries Receive and follow up creditor enquiries via telephone Maintaining creditor enquiry register Review and prepare correspondence to creditors and their representatives via faCSimile, email and post Correspondence with committee of creditors members

Secured creditor reporting Preparing reports to secured creditor Responding to secured creditor's queries Dealing with fixed or floating charges or both

Creditor reports Preparing reports, circulars, notices to creditors notice of meetings, agendas, remuneration for fee approval

Creditors meetinq and qeneral reports to creditors [$20,000] Dealing with proofs of Receipting and filing POD's when not related to a dividend

debt Corresponding with OSR and ATO regarding POD's when not related to a dividend

Meeting of Creditors Preparation meeting notices, proxies and advertisements Forward notice of meeting to all known creditors Preparation of meeting file, including agenda, certificate of postage, attendance register, list of creditors, reports to creditors, advertisement of meeting and draft minutes of meeting. Preparation and certificate of resolution of minutes of meetings Respond to stakeholder queries and questions immediately following meetina

Employees enquiry Receive and follow up employee enquiries via telephone Maintain employee enquiry register Review and prepare correspondence to creditors and their representatives via faCSimile, email and post

Employees Preparation of letters to employees advising of their entitlements [$5,000] and options available

Receive and prepare correspondence in response to employees objections to leave entitlements

GEERS Correspondence with GEERS Other employee issues Correspondence with Child Support

Correspondence with Centrelink

380101-1

Task Area Description Conducting investigation, Searches etc.

Investigation [$189,000]

Examinations

Legal Matters

Adjudicating proofs of debt

Dividend [$33,000 subject

Dividend procedures to sufficient funds being realised] (advertising etc.)

Correspondence with others Document maintenance/file review/checklist

Bank account Administration administration [$10,000]

Finalisation

Strategic Planning I Review ADD ointment

380101-1

Orford Refrigeration Pty Ltd (In Liquidation) Remuneration Report

Includes Correspondence to directors Reviewing books and records Review of specific transactions and liaising with directors regarding certain transactions Liaising with directors regarding certain transactions Preparation of investigation ..• e or notes Recovery of voidable transactions(unfair preference claims, uncommercial transactions, unreasonable director related transactions) Investigate phoenix company activity by· the directors Recovery of related party transactions Preparation of supplementary 533 report to ASIC Preparing brief to solicitor Liaising with solicitors regarding examinations Attendance at examination Reviewing examination transcripts Liaising with solicitors regarding outcome of examinations and further actions available Internal meetings to discuss status of litigation Preparing brief to solicitors Liaising/correspondence with solicitors regarding recovery actions Attending to negotiations Attendinq to settlement matters Preparation of correspondence to potential creditors inviting lodgement of POD Receipt of PODs Maintain POD register Adjudicating PODs Request further information from claimants regarding POD Preparation of correspondence to claimant advising outcome of adjudication Preparation of correspondence to creditors advising of intention to declare dividend Advertisement of intention to declare dividend Obtain clearance from ATO to allow distribution of company's assets Preparation of dividend calculation Preparation of correspondence to creditors announcing declaration of dividend Advertise announcement of dividend Preparation of distribution, dividend file and payment vouchers Preparation of correspondence to creditors enclosing payment of dividend Other correspondences not specific to other milestones

General administration including 6 monthly administration review Preparation of file notes and internal memos Filing of documents File reviews Updating checklists Preparing correspondence opening and closing accounts Requesting bank statements Bank account or Cash Book reconciliations Correspondence with bank regarding specific transfers Banking, Drawing Cheques / depositing funds Summary of Receipts and Payments Notifying ATO of finalisation Cancelling ABN I GST I PAYG registration Completing checklists Finalisinq WIP Discussions regarding status of administration Manaaement Review Strateaic Plannina

Task Area Description Books and records / storage

Statutory ASIC Form 524 and other [$8,000] forms

ASIC, ATO & other statut0J' reporting (533, BAS ete

380101-1

Orford Refrigeration pty Ltd (In Liquidation) Remuneration Report

Includes Dealing with records in storage Sending job files to storage Archiving and Storage of records Statutory Lodgements Preparing and lodging ASIC forms Lodging Minutes of meeting of creditors CorresDondenee with ASIC regarding statutory forms Taxation ego Preparing SAS