pilo~ PILOT PARTNERS Chartered Accountants

LevelS, 175 EagLe St. Brisbane 4000 PO Box 7095 Brisbane 4001 Queensland Australia

P +61 7 3023 1300 F +61 7 3229 1227

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

ABN 60 063 687 7691 pilot is a registered trade mark licensed to Pilot Partners! Liability limited by a scheme approved under Professional Standards Legislation Mcmbllf of Ne xi a International, a wor!dwid~ network oflndepcndent accounting il:od consulting firms.

pilaf? Contents

1. MEETING OF CREDITORS ......................................................................................................................... 5

2. BACKGROUND INFORMATION ............................................................................................................... 5

2.1. History of the Company ............................................................................................................................ 5

2.2 Orford Sign Shop ("Sign Shop") .......................................................................................................... 6

2.3 Changes in Company Officers and Members .................................................................................. 6

2.4 Related Parties .............................................................................................................................................. 8

2.5 Subsidiaries .................................................................................................................................................... 9

3. REPORT AS TO AFFAIRS ........................................................................................................................... 9

4. BOOKS AND RECORDS OF THE COMPANY ..................................................................................... 1 4

5. LIQUIDATORS' DUTIES AND INVESTIGATIONS ........................................................................ 15

5.1 Matters Attended to by the Liquidators ......................................................................................... 15

5.2 Liquidators' Investigations to Date .................................................................................................. 16

5.3 Reasons for the Company's Failure .................................................................................................. 17

5.4 Related Party Loans ................................................................................................................................. 17

5.5 Sale of Intellectual Property ................................................................................................................ 18

5.6 The Company's Activities in China .................................................................................................... 19

5.7 Maureen Orford .......................................................................................................................................... 20

5.8 Chilimint Pty Ltd ("Chilimint") ............................................................................................................ 20

5.9 Orford Bros Pty Ltd ATF Orford Logistics Trust ("Orford Bros") ....................................... 21

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pilaf? 5.10. Unfair Preferences (Section 588FA) ................................................................................................ 22

5.11. Possible Public Examination ................................................................................................................ 22

6. INSOLVENT TRADING ............................................................................................................................. 22

7. RECOVERY FROM DIRECTORS ............................................................................................................. 25

8. RECEIPTS AND PAYMENTS ................................................................................................................... 26

9. LIKELY RETURN TO CREDITORS ........................................................................................................ 26

10. LIQUIDATORS' REMUNERATION ....................................................................................................... 27

11. FINALISATION OF THE LIQUIDATION ........................................................................................... 27

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Annexures

• Notice of Meeting of Creditors (Form 529) • Proxy Form (Form 532) • Proof of Debt Form (Form 535) • Summary of Receipts and Payments • Remuneration Report

Appendices

A. List of Creditors B. Listing of Intellectual Property C. Historical Profit and Loss Statements D. Historical Balance Sheets

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pilof7 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 10 May 2011 and now provide creditors with an update on the winding up to date.

1. MEETING OF CREDITORS

1.1 We advise that the meeting of creditors for the abovenamed company will be held at the Downs Room, Burke & Wills Hotel, 554 Ruthven Street, Toowoomba Qld 4350 on 31 October 2011 at l1:OOam.

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 28 October 2011). This can be done by facsimile, post or delivery and will minimise any delay with the commencement of the meeting.

2. BACKGROUND INFORMATION

2.1. History of the Company

2.1.1 As previously advised in our report to creditors dated 10 May 2011, the company operated as a manufacturer of commercial refrigeration products. The business operated by the company spanned four generations and had its origins in 1922 from its current premises located at 75 Vacy Street, Toowoomba, Queensland.

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2.1.2 The company was incorporated on 23 June 1969 as Orford Pty Ltd and subsequently changed its name to Orford Refrigeration Pty Ltd on 19 July 2000. We are advised that Ian Orford acquired John Orford's share of the business in 2001.

2.1.3 Orford Refrigeration Pty Ltd became the trustee for the Orford Family Trust on 1 July 1977. The trust deed was varied on 30 April 2003 to remove Orford Refrigeration Pty Ltd as trustee and appoint Commercial Icemakers Pty Ltd as the new Trustee.

2.1.4 The current directors, Corby and Liam Orford, commenced work in the family business in 2002 and were both appointed as directors of the company on 19 September 2008 when they acquired a majority stake in the business from their late father.

2.1.5 Both Corby and Liam Orford have controlled the company's affairs since September 2008.

2.1.6 Prior to being appointed as the managing director, Corby Orford held a number of positions in the business, including human resources manager, operations manager and sales manager. Liam Orford held the positions of the information technology manager and Orford Sign Shop general manager prior to being appointed as the executive director.

2.2 Orford Sign Shop ("Sign Shop")

2.2.1 Orford Refrigeration also carried on a sign business under the business name "Orford Sign Shop" which produced vinyl decals and performed screen printing services from the Vacy Street premises. Its operations ceased along with those of Orford Refrigeration upon our appointment. While the Sign Shop's main business was producing decals for the company's refrigeration cabinets, work was also sourced beyond the company with the Sign Shop producing vinyl decals, transfer prints and promotional street and building signage for both regular and one-off customers.

2.2.2 Our review of the companys' books and records indicate that the Sign Shop had been successful in securing the business of a number of significant customers including Cad bury Schweppes, Coca Cola Amatil and Wanless, in addition to Orford Refrigeration itself.

2.2.3 The Sign Shop 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. The Sign Shop did not hold a significant amount of assets and utilised a relatively small number of employees in its operations. Due to the scale of the business and the inherent complications of its accounting records, we do not intend to reconstruct the accounts of the Sign Shop.

2.3 Changes in Company Officers and Members

2.3.1 A search with the Australian Securities and Investments Commission ("ASIC") reveals the following past and present directors of the company:

Name Appointment Date Cease Date Corbv An n 0 rford 19 September 2008 Present director Liam Francis Orford 19 September 2008 Present di rector Ian Francis Orford 1 July 1969 19 September 2008

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pilof7 Name Appointment Date Cease Date Corby Ann Orford 19 September 2008 Present director Maureen Merle Orford 6 May 2003 28 September 2004 Maureen Merle Orford 23 February 1988 9 May 2001 Maureen Merle Orford 1 June 2008 19 September 2008 Dean Cameron Orford 9 May 2001 1 June 2008 Gary Charles Fitzgerald 20 February 2002 1 June 2008 Corby Ann Orford 6 June 2003 1 June 2008 Liam Francis Orford 6 June 2003 1 June 2008 Brendan Scott Graham 28 September 2004 1 June 2008 John Henry Orford 1 July 1969 6 May 2003 Mark Joh n Orford 9 May 2001 6 May 2003 Glenda Orford 23 February 1988 9 May 2001 Eric Georqe Orford 1 Julv 1969 24 November 2000

2.3.2 We note that there are currently 15,010 ordinary shares on issue. A search with ASlC reveals the following past and present members of the company:

Member Name Number of Holding as percent Current or Former Shares Held of issued shares Member

lM Realty Pty Ltd 7504 49.90% Current John Henry Orford 1 0.10% Current Chilimint Ptv Ltd 7505 50.00% Current Maureen Merle Orford 1850 Unknown Former lan Francis Orford 5655 Unknown Former Glenda Orford 1850 Unknown Former Glenda Orford 925 Unknown Former John Henry Orford 2825 Unknown Former Eric Georqe Orford 5 Unknown Former Maureen Merle Orford 925 Unknown Former lan Francis Orford 2825 Unknown Former

2.3.3 lM Realty Pty Ltd ("lM Realty")

lM Realty was incorporated on 23 June 1969 as Orford Realty Pty Ltd and subsequently changed its name to lM Realty Pty Ltd on 4 January 2007. Liam and Corby Orford are the sole directors of this company which owns the land at 75 Vacy Street from which Orford Refrigeration operated. We note that there is a significant inter-company loan between Orford Refrigeration and lM Realty, which is discussed further in section 5.4 of this report.

2.3.4 Chilimint Pty Ltd ("Chilimint")

Chilimint was incorporated on 19 September 2008. Liam and Corby Orford are both directors and have equal shareholdings.

The relationship between Chilimint and Orford Refrigeration is discussed further at section 5.8.

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2.4 Related Parties.

2.4.1 There are a number of related individuals and entities, some of which have had dealings with the company in recent years. The following table outlines the relationship between these parties:

Related Partv Relationshio Directors Secretary Chilimint Pty Ltd Associated entity, member Corby Orford Corby Orford

Uam Orford IM Realty PtYj~td (Formerly Orford Associated entity 1 member Corby Orford None Realtv Ptv Ltd Liam Orrord Orford (IP) pty Ltd Associated entity Corby Orford Liam Orford

Liam Orford Orford Asset Management pty Ltd Associated entity Corby Orford Liam Orford

Liam Orford Orford Bros. Pty Ltd Associated entity I lan Orford (deceased) lan Orford

subsidiary Maureen Orford (deceased) Corby Orford Liam Orford Gary Fitzgerald Brendan Graham Dean Orford

Orford Logistics Pty Ltd Associated entity Corby Orford Liam Orford Liam Orford Dean Orford

o~~rd NZ Pty Ltd (incorporated in Associated entity I Dean KcKinlay Dean McKinlay NZ subsidiarY Corbv Orford Orford Sales Pty Ltd Subsidiary lan Orford (deceased) ~~n Orfor~)

deceased Orford WA Pty Ltd Associated entity Corby Orford Corby Orford

Liam Orford Roderick Abif pty Ltd Associated entity Corby Orford Liam Orford

Uam Orford Roderick Abif 1 pty Ltd Associated entity Corby Orford Liam Orford

Liam Orford Roderick Abif 2 pty Ltd Associated entity Corby Orford Liam Orford

Liam Orford Roderick Abif 3 Pty Ltd Associated entity Corby Orford Liam Orford

Liam Orford Roderick Abif 4 pty Ltd Associated entity Corby Orford Liam Orford

Liam Orford Roderick Abif 5 Pty Ltd Associated entity Corby Orford Liam Orford

Liam Orford Sailnurse Ptv Ltd Associated entity Corbv Orford Corbv Orford Sailnut Ptv Ltd Associated entity Liam Orford Liam Orford The Estate of lan Orford (Deceased) Father of Dean, Liam and

Corbv Orford John Orford Brother of lan Orford Maureen Orford Mother of Dean, Liam and

Corbv Orford Dean Orford Brother of Liam and Corby

Orford Corby Orford Director of Orford

Refrineration Liam Orford Director of Orford

Refriaeration Mark Orford Cousin of Dean, Liam and

Corbv Orford Paul Orford Cousin of Dean, Uam and

Corbv Orford

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pilof7 2.4.2 For further details on the company's subsidiaries identified above, please refer to section

2.5 below.

2.5 Subsidiaries

2.5.1 Orford Bras Pty Ltd ("Orford Bras") as Trustee for the Orford Logistics Trust

Orford Refrigeration owns all the issued shares of Orford Bras which is the trustee of the Orford Logistics Trust. We have been advised by the directors that this company was in the process of being liquidated.

Our investigations have revealed this company currently has a bank account with a balance of $40,859.09, the bulk of which was transferred fram Orford Refrigeration prior to our appointment. Please refer to section 5.9 for further details of our investigations to date.

2.5.2 Orford Sales Pty Ltd ("Orford Sales")

Orford Refrigeration currently holds all of the shares of Orford Sales Pty Ltd. Corby and Liam Orford have advised that this company has been dormant for some time. The company's sole director and secretary, Mr ran Orford passed away in 2008. Asrc has advised us that matters relating to this company should be referred to the executor of ran Orford's deceased estate, who we believe to be Liam and Corby Orford.

Ou r investigations have not identified any assets owned by this company.

2.5.3 Orford NZ pty Ltd ("Orford NZ")

Orford Refrigeration currently holds 7 shares, or 70% of Orford NZ, which was incorporated in NZ. The directors are Corby Orford and Dean McKinlay.

This company was previously the Orford Refrigeration distributor in New Zealand. The distributorship was subsequently allocated to an independent contractor in New Zealand.

The directors have advised that the company has been dormant since March 2010 and was in the process of being wound down upon our appointment.

Our investigations have not identified any assets owned by this company.

3. REPORT AS TO AFFAIRS

3.1 The directors submitted to us a Report as to Affairs ("RATA") on 8 June 2011 and 10 June 2011, respectively. The report sets out the company's financial position to the best of the directors' knowledge and belief as at 6 May 2011. This document can be inspected at our office.

3.2 The report may be summarised as follows:

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Notes:

(i)

Liam & Liam & Corby Corby Liquidators'

Orford's Orford's ERV Note Book Value Estimated $

$ Realisable Value "ERV"

$ Assets Cash on Hand (i) 5,100 5,100 1,653 Cash at Bank (ii) Nil Nil Nil Debtors (iii) 848,855 Unknown 3,500,000 Related Party Loans (iv) Nil Nil Unknown Plant & Equipment (v) 3,979,100 Unknown 1,200,000 Stock/Finished Goods on Hand (vi) 5,810,230 Unknown 635,000 Work in Progress (vii) 23,260 Unknown Nil Shares in Subsidiaries (viii) Nil Nil 40,000 Intellectual Property (ix) Nil Nil Unknown Assets SpeCifically Charged (x) 9,054,835

19,721,380 Unknown 5,376,653 Liabilities

Secu red Creditors (xi) 7,562,527 7,562,527 8,056,277 Employee Entitlements (xii) 1,597,568 1,597,568 2,684,003 Unsecured Creditors (xiii) 9,853.777 9,853.777 12,292,870

19,013,872 19,013,872 23,033,150

Net Surplus/(Deficiency) (707,508) Unknown (17,656,497)

Cash on Hand

The directors disclosed cash on hand of $5,100 as at the date of our appointment. We recovered $652.50 from various petty cash tins at the company premises and $1,000 from a sales employee being the balance of their float.

(ii) Cash at Bank

As at the date of our appointment the company held a bank account with Westpac Banking Corporation Limited ("Westpac") with a credit balance of $367,413.18. The account was frozen shortly after our appointment.

Our review of the bank statements reveal that $362,600 of the funds in the bank account were drawn from the company's debtor finance facility with Westpac prior to the liquidation. Westpac holds a fixed charge over this facility and has applied the full balance of this account against facilities it has with the company.

(iii) Debtors

As at the date of our appointment, the company's books and records show debtors of $4,615,913. Below is a summary of the results of our realisations to date:

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Factored Unfactored Total $ $ $

Total debtors per company's records 4,436,043 179,870 4,615,913 Less: Total debtors collected by Liquidators 2,991,219 86,906 3,078,125 Offsets/Adjustments 854,160 3,308 857,468 Balance due 590,664 89,656 680!320

A number of the company's former staff were retained by the Liquidators to assist with the collection of the company's debtors and maintain the company's accounting system.

We have encountered difficulties with the collection of some debtors given the company is not in a position to honour its warranty obligations. Unreasonable or difficult debtors have been referred to either a debt collection agency or our solicitors for further action. We will continue to pursue the outstanding debtors.

The debtor finance facility with Westpac has now been repaid in full. The bank is of the view that the remaining factored debtors, which were effectively sold to the bank pursuant to the debtor facility agreement are to be paid to the bank to offset other facilities it has with the company.

(iv) Related Party Loans

The company's records reveal the following related party loans as owing to the company as at 31 March 2011:

Related Party Amount $

Ian Orford (deceased) 184282 Mau reen Orford 20361 Orford NZ Pty Ltd 114,651 Orford WA Pty Ltd 15,353 Orford LogistiCS Trust 256625 IM Rea Itv Ptv Ltd 3489 956 Dean Orford 22471 Liam Orford 24894 Total Related Party Loans $4,128,593

These loans are discussed in further detail at section 5.4 of this report.

(v) Plant & Equipment

The directors disclosed the company owned plant & equipment with a book value of $3,979,100, consisting of a wide range of manufacturing and assembly equipment, office furniture and equipment and motor vehicles.

GraysOnline ("GraysOnline") have been engaged as our agent to assist with the asset realisation process. Gross sale proceeds of $1,581,403 have been received by our office to

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pilaf? date. We anticipate further proceeds from future auctions to be forthcoming over the next two months.

All proceeds from sale of the company's plant and equipment are subject to the fixed and floating charge held by Westpac.

(vi) Stock/Finished Goods on Hand

The directors disclosed stock on hand with a book value of $5,810,230 as at the date of our appointment. A stocktake was undertaken shortly after our appointment to ascertain the value of stock and finished goods on hand.

We note that a significant portion of the stock on hand was subject to retention of title claims by creditors. We have undertaken a review of all claims and where valid, have facilitated the identification and collection of encumbered stock. There remains one retention of title claim which is yet to be settled. This claim is currently with our solicitors.

Transport companies holding a significant portion of finished goods at their storage depots around Australia have claimed a lien over goods held for debts owing to them. We have reviewed the supporting documentation provided to ascertain the validity of the lien claim. Realisation of these goods will commence in due course with an accounting of the sale proceeds to be provided to ou r office.

To date we have realised $320,736.64 from finished goods and $172,822 from stock. Further realisations from finished goods and stock are expected over the next three to four months.

(vii) Work in Progress

The company's work in progress consists of partially finished refrigeration units. The directors disclosed work in progress with a book value of $23,260 as at the date of our appointment.

GraysOnline have been selling these items as spare parts along with the stock on hand discussed above.

(viii) Shares in Subsidiaries

The directors did not disclose shares held by the company in their RATAs, however our investigations of the company's financial accounts and searches at ASIC reveal that the company holds shares in the following subsidiaries:

Entity No. of Shares 0/0 of Shares Held Held

Orford Bros Pty Ltd 1000 100% Orford Sales Pty Ud 1000 100% Orford NZ Pty Ltd (incorporated in New Zealand) 7 70%

The current value of the shares held are unknown, however due to some of the companies being dormant with limited realisable assets (refer to section 2.5 above), we expect the value of these shares to be minimal, if any.

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(ix) Intellectual Property (nIP")

The company's intellectual property was sold to a related entity, Roderick Abif Pty Ltd, prior to the company being placed into liquidation. Please refer section 5.5 of this report for further information.

(x) Assets Specifically Charged

The directors have indicated assets specifically charged of $9,054,835, however they have not indicated which asset classes this relates to. We understand the majority of this amount relates to the debtors financed by Westpac and plant and equipment subject to specific finance agreements with Westpac.

(xi) Secured Creditors

Westpac holds two fixed and floating charges and various fixed charges over the assets of the company. As at the date of our appointment, Westpac was owed $8,056,277. The bank's fixed portion of their charge receives priority to the claims of employee and unsecured creditors.

At this stage it appears that there are insufficient assets to satisfy the bank's charge in full.

It should be noted that Section 561 of the Act affords employee claims employee claims a priority over floating charge realisations (Le. unfactored debtors and stock).

(xii) Employee Entitlements

Employee claims are afforded priority over claims by unsecured creditors pursuant to Section 556 of the Corporations Act 2001 ("the Act").

As at the date of our appointment the company employed approximately 180 staff. The company ceased to employ staff as at the date of our appointment. A summary of the outstanding entitlements owing to employees as at the date of our appointment and entitlements paid by GEERS to employees is below:

Company's Paid by Balance Employee Entitlements Records GEERS Owing

$ $ $ Wages 125,004 105,089 19,915 Superannuation 199,219 Nil 199,219 Annual Leave (incl leave loading) 457,345 401,393 55,952 Payment in Lieu of Notice 404,196 354,312 49,884 Redundancy 983,361 877,887 105,474 Long Service Leave 514,878 484,736 30,142 Total 2,684,003 2,223,417 460,586

The above does not include employee entitlements owing to the directors, Corby and Liam Orford. We understand both directors were remunerated by Orford Bros Pty Ltd as Trustee for the Orford Logistics Trust.

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We note that redundancy claims of some employees were partly or wholly rejected by GEERS as apprentices are excluded from receiving redu ndancies and employees with no employment contracts were assessed in accordance with the National Employment Standards (NES) which does not provide for redundancy entitlements.

Pursuant to Section 556 of the Act, unpaid superannuation is afforded the same priority as unpaid wages. The Deputy of Commissioner of Taxation is yet to submit a claim in regard to unpaid superannuation and the superannuation guarantee charge. We have however forwarded the relevant details to the ATO so they may lodge a claim. It should be noted that should sufficient funds become available to enable a dividend to priority unsecured creditors, any payment made to the ATO in respect of superannuation will be distributed by the ATO to the relevant superannuation funds.

At this stage, it is uncertain if there will be a return to employees.

(xiii) Unsecured Creditors

There are presently 321 claims by unsecured creditors for debts totalling $12,292,870, as follows:

Trade Creditors Related Entities Total Unsecured Creditors

$9,230,297 $3,062,574

$12,292,870

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.

A list is attached as Appendix A.

4. BOOKS AND RECORDS OF THE COMPANY

4.1 We have obtained a significant amount of the company's books and records from the directors and the company's offices and have conducted investigations into the trade dealings and affairs of the company and its officers.

4.2 The company uses a system called MFG Pro, which we have been advised is a common program for manufacturing businesses. Whilst this system is beneficial for the manufacturing aspect of the business, its accounting capabilities are somewhat cumbersome. The system is not user-friendly and has made extracting information for the purposes of our investigations somewhat protracted.

4.3 We have gained remote access to the company's server and system at the Orford premises however the server which the system operates from is subject to a retention of title claim by a creditor. We are currently looking into options available to retain access to the system until such time as our investigations are finalised.

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pilof7 5. LIQUIDATORS' DUTIES AND INVESTIGATIONS

5.1 Matters Attended to by the Liquidators

5.1.1 Since our appointment the following matters have been attended to:

• Met with the company's directors and advisors.

• Undertaken an assessment of the company's financial position and determined it's inability to continue trading.

• Secured the premises, including changing of all locks, liaising with security companies and restricting access by external parties.

• Secured the assets of the company.

• Arranged specialist insurance for the company's assets.

• Advised employees of their termination and liaised with them, and their representatives, regarding the necessary paperwork to enable them to submit claims under GEERS.

• Liaised with the company's major secured creditor, Westpac, in regard to the financial position of the company and the assets subject to the bank's security.

• Engaged Grays Online to prepare a listing and valuation of the company's plant and equipment, stock and finished goods.

• Conducted a stock take.

• Investigation into assets held by third parties including laptops, mobiles, units on consignment, vehicles and goods held under retention of title clauses.

• Investigation into and securing access to the company's accounting and IT systems.

• Liaised with the company's major customers in regard to stock on hand and in production at the date of liquidation.

• Liaised with various creditors regarding retention of title claims over goods supplied to the company prior to the date of liquidation, including identifying goods and adjudicating retention of title clauses.

• Attending to the identification, evidencing and facilitating of the removal of third-party goods and equipment on site.

• Attending to the collection of the outstanding debtors (both factored and non-factored) and, where appropriate, referring matters to either a debt collection agency or solicitors.

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pilaf? • Instructed and liaised with Grays Online in regard to the sale of various company

assets.

• Liaised with GEERS in regard to claims and queries regarding employee entitlements as well as the calculation, verification and distribution to employees of GEERS funds.

• As creditors are aware, some Orford employees were retained to assist the Liquidators with the following matters;

• liaising with potential employers;

• liaising with Child Support and Workers' Compensation;

• calculating outstanding employee entitlements as at the date of liquidation;

• collection of debtors;

• reconciling the creditor and debtor ledgers as at the date of liquidation;

• undertaking a stock take to determine stock on hand and to identify goods which may be subject to retention of title claims; and

• assisting GraysOnline with the identification of plant, equipment and machinery.

• Undertaken investigations into the company's affairs and activities to identify matters which may require further investigation, such as:

• sale of the company's IP and activities in China;

• the timing of the company's insolvency;

• payments to creditors in the months just prior to liquidation, which may be void;

• transactions with related party, which may be void; and

• possible offences and breaches of duty by the company's officers.

• Convened and held a meeting of creditors in Toowoomba.

• Liaised with parties interested in the company's intellectual property, in the event the sale to Roderick Abif Pty Ltd is void.

• Lodgement of all statutory documents and notices regarding the administration.

5.2 Liquidators' Investigations to Date

5.2.1 A report has been lodged with ASIC in accordance with Section 533 of the Act which outlines the offences that may have been committed by the company's officers. We are yet to receive ASIC's response.

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5.2.2 If any creditor is aware of matters relating to the past dealings of the company that may assist us in our investigations, it would be appreciated if they would contact either Ms Liz Yang or Mr Cameron Woodcroft of this office to discuss these matters further.

5.3 Reasons for the Company's Failure

5.3.1 As previously advised, the directors have identified the decline in orders and the effects of the Global Financial Crisis as being the key factors which have led to company's failure.

5.3.2 We believe the main reasons for the company's failure:

• Inadequate cash flow as goods manufactured were either generating minimal margins or were produced at a loss. From our review of the company's records, the costs to produce exceeded the selling prices of several models of cabinets.

• Poor economic conditions as a result of the global financial crisis.

• The significant reduction in orders from the company's major customer, Coca Cola Amatil ("Coca Cola").

• Strong competition from cheaper import units from China. As Orford's labour and manufacturing costs were higher, the prices of Orford goods were significantly higher than imported goods.

5.3.3 The company's available financial statements reflect that the increasing trading losses significantly eroded the company's position. In 2006 the company had net assets of $10,717,397.

Year ended Profit (Loss) Net Retained Before Tax Assets Earnings

$ $ $ 30 June 2006 (unaudited) (1 586 206) 10717397 10 317 341 30 June 2007 (audited) (3 730 700) 7558005 7 157 949 30 June 2008 (draft) (3919 364) 3482913 3082857 30 June 2009 (management (1,836,995) 1,645,916 1,245,860 accounts) 30 June 2010 (1,287,801) (326,251) (726,307) (management accounts) March 2011 220,376 (538,960) (939,016) (manaqement accounts)

5.4 Related Party Loans

5.4.1 The company's balance sheet as at March 2011 revealed the following loans owing by related parties:

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pilaf? Related Party Amount Comments

$ lan Orford 184,282 Enquiries are yet to be made as to whether (deceased) lan Orford's deceased estate has finalised

and whether this loan is collectable.

Maureen Orford 20,361 Refer 5.7

Orford NZ Pty Ltd 114,651 We are advised this loan is not recoverable as the company has been dormant since March 2010. We are yet to receive the financial accounts relating to this company.

Orford WA Pty Ud 15,353 We note this company was deregistered on 8 September 2011.

Orford Logistics 256,625 Refer 5.9 Trust lM Realty Pty Ltd 3,489,956 lM Realty has lodged claims against the

company in the amounts of $99,458 and $1,057,518 for a loan to the company and for guaranteeing the company's debt to Westpac, respectively.

We note lM Realty's only asset in the property from which o rfo rd Refrigeration had operated. This property is encum bered to Westpac.

Dean Orford 22,471 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, lan Orford.

Liam Orford 24,894 Liam Orford has lodged a claim against the company for a loan made to the company in the amount of $180,000. No supporting documentation has been provided to evidence the loan.

Total $4,128,593

5.4.2 Our investigations are continuing in regard to these related party loans.

5.5 Sale of Intellectual Property

5.5.1 The company's intellectual property consists primarily of both registered and unregistered patents, trademarks, business names, domain names, drawings and research and development information.

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5.5.2 On 5 May 2011, the day prior to our appointment, the company's directors entered into a contract to sell its IP to a related entity, Roderick Abif Pty Ltd ("Roderick AbifU

). The directors of Roderick Abif are Corby and Liam Orford.

5.5.3 The IP is an asset of the company which is subject to Westpac's fixed and floating charge. We note before any of the IP can be sold or transferred to another party, Westpac's consent and release of its security will be required. We do not believe consent has been sought from the secured creditor.

5.5.4 The agreement provided that the purchase price was to be determined by a valuation undertaken by an independent valuer, with the purchase price to be paid over a 2 year period.

5.5.5 The valuation has now been completed on the assumption that:

• no supply agreement with Coca Cola Amatil is agreed; and • the Intellectual Property Licence Agreement with Skope Australia Pty Ltd is excluded.

5.5.6 We have conducted searches at IP Australia of the patents, trademarks and designs which were subject to the IP sale agreement between Orford Refrigeration and Roderick Abif. Full details are attached as Appendix B.

5.5.7 Our searches at IP Australia also revealed a number of patents and trademarks which were not subject to the IP sale agreement between Orford Refrigeration and Roderick Abif. Please refer to Table 2 of Appendix B.

5.5.8 Our solicitors have advised that the agreement to sell the IP is likely to be an uncommercial transaction which may be capable of being voided.

5.6 The Company's Activities in China

5.6.1 Our investigations show that Orford Refrigeration has been actively investigating potential business partners in China since at least April 2006. We have located a report from this time where unidentified Orford Refrigeration representatives visited at least five different suppliers of a variety of components including coils, toughened glass, refrigeration packages and vacuum forming supply and tooling.

5.6.2 Company records from November 2008 show that the company's management had lengthy discussions regarding importing refrigeration packages from China. At this time, the board decided that these units should continue to be manufactured in-house. We note that this decision follows on from legal disputes with a supplier of Chinese-manufactured refrigeration packages over product quality.

5.6.3 Company records show that Corby Orford intended to travel to China in mid-March 2011 to visit a factory producing food service units. The records indicate that it was planned to import the units to Australia under the Orford branding. From the records analysed, it is unclear whether this trip took place.

19

pilaf? 5.6.4 Records indicate that in August 2010, January 2011 and April 2011 the company had

contacted companies in China and Thailand with intentions to visit their factories and discuss the supply of various components and refrigeration units.

5.6.5 Our investigations have revealed that in April 2011, several large payments totalling $80,000 were made to a Chinese manufacturer, Qingdao Haili Commercial Appliances Co., Limited ("Haili"). The eVidence in our possession indicates that these payments were for tooling costs for 31 Coca Cola-specification cabinets. We are continuing to look into the circumstances surrounding these transactions.

5.6.6 Records also show payments made by the company in April 2011 to Mr Peter Norman, Corby Orford's husband, as part of a trip he made to China. Correspondence from Mr Norman between 29 April 2011 and 5 May 2011 discuss the production of refrigeration cabinets by Haili and enclose pictures of a new factory and refrigeration cabinets under construction.

5.6.7 In a circular sent by the Orford Group in August 2011, it is noted that "The Orford Group has accomplished the final set up of their new factory venture in China."

5.6.8 Our investigations into the company's activities in China prior to our appointment will continue.

5.7 Maureen Orford

5.7.1 Our investigations have revealed that numerous payments totalling $200,000 were made to Maureen Orford in the weeks leading up to the company being placed into liquidation:

Date 29 April 2011 29 April 2011 29 April 2011 4 May 2011 4 May 2011 4 May 2011

$ $35,000 $47,500 $17,500 $35,000 $47,500 $17,500

$200,000

5.7.2 Our solicitors have issued a demand to Maureen Orford for the above payments to be repaid. It is our opinion that these payments are void and recoverable by a Liquidator pu rsuant to section 588FE of the Act.

5.7.3 Subsequent to the demand being issued, our review of the company's bank statements have revealed further payments totaling $23,000 were made in November and December 2010 to Maureen Orford. Our investigations are continuing to determine whether these payments are also void and recoverable.

5.8 Chilimint Pty Ltd ("Chilimint")

5.8.1 The directors of Chilimint are Corby and Liam Orford.

20

pilaf? 5.8.2 Our review of the company's general ledger indicate the following transactions with

Chilimint in the weeks leading up to the company being placed into liquidation:

Date 29 April 2011 4 May 2011 4 May 2011

Details Payment Payment Sale and delivery of 50 refrigeration units at cost price

Amount $117,000 $100,000 $163,887

$380,887

5.8.3 The ledger reflects loans by Chillimint totalling $800,000 to the company in August 2009 as well as the above transactions.

5.8.4 We have not located any loan documentation in the company's records or amounts deposited to or withdrawn from the company's bank accounts which support these transactions.

5.8.5 Our investigations are ongoing as to basis of the loan and the transactions entered into just prior to liquidation to determine whether they may be considered uncommercial pursuant to section 588FB of the Act and recoverable by a liqUidator.

5.9 Orford Bros pty Ltd ATF Orford Logistics Trust ("Orford Bros")

5.9.1 Orford Bros is a wholly owned subsidiary of Orford Refrigeration which we have been advised has been dormant for quite some time. Orford Bros also the Trustee for the Orford Logistics Trust.

5.9.2 A review of the company's bank statements indicate that between November 2010 and May 2011 regular payments exceeding $100,000, and totalling approximately $3.5 million, were paid to Orford Bros.

5.9.3 We have been advised however that these payments are not reflected in the bank account of Orford Bros. We have requested the Bank trace the destination of these payments. Our investigations into this matter are continuing.

5.9.4 Our investigations indicate that Corby and Liam Orford received salaries from Orford Bros up to the financial year ended 30 June 2010.

5.9.5 We are aware that Liam, Corby and Maureen Orford resigned as directors of Orford Bros Pty Ltd on 4 August 2011.

5.9.6 The company's March 2011 management accounts reflect a loan owing to the trust of $256,625.

5.9.7 Our investigations are continuing in regard to the basiS of the loan and recipients of the payments made to Orford Bros.

21

pilaf? 5.10. Unfair Preferences (Section S88FA)

5.10.1. An unfair preference is received by a creditor of a company if:

(a) by entering into a transaction the creditor receives more from the company than they would receive if the transaction was set aside and the creditor was to prove for their debt in the winding up of the company, and

(b) the transaction was entered into at a time when the company is insolvent or as a result of entering into the transaction becomes insolvent.

5.10.2. A Liquidator is able to recover unfair preferences received by creditors during the six month period (four years if the payment was made to a related entity) ending on the relation back date.

5.10.3. We have conducted a review of the transactions entered into by the company during the six month period prior to the relation back day, being 6 May 2011.

5.10.4. Based on the records available to us, we have identified potential transactions totaling $2,637,000 which may constitute unfair preferences. Further investigation is required before we are in a position to issue demands in respect of these transactions and assess the likely recovery.

5.10.5. It should be noted that legal action may be required in perusing recovery of these transactions.

5.11. Possible Public Examination

5.11.1. 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.

5.11.2. We would not propose to conduct such an examination until such time as we have finalised our investigations and considered further the alleged voidable transactions.

6. INSOLVENT TRADING

6.1 Section 588G of the Act provides that a director has 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.

6.2 A summary of the company's trading results from 2004 are attached as Appendices C &: D. A summary is also provided below.

22

pilaf? March 2011 2010 2009

Year Management Management Management 2008 2007 2006 Accounts Accounts Accounts Draft Audited Unaudited

$ $ $ $ $ $

Profit and Loss Statement:

Income 31,507,338 42,954,376 33,238,766 30,376,988 30,223,578 42,465,746

Expenses 31,286,962 44,242,177 35,075,761 34,296,352 33,668,624 43,730,121

Profit/(Loss) Before Tax 220,376 (1,287,801) (1,836,995) (3,919,364) (3,445,046) (1,264,375)

Less Tax Nil Nil Nil Nil 285,654 321,831

Profit/ (loss) After Tax 220,376 (1,287,801) (1,836,995) (3,919,364 ) (3,730,700) (1,586,206)

Balance Sheet:

Current Assets 11,132,604 10,159,080 11,918,446 9,540,048 8,815,002 8,846,051

Non-Current Assets 8,552,128 8,869,588 9,489,384 12,631,099 13,679,176 12,871,848

Total Assets 19,684,732 19,028,668 21,407,830 22,171,147 22,494,178 21,717,899

Current Liabilities 10,659,970 9,257,900 7,157,294 10,449,149 7,964,352 6,518,984

Non-Current Liabilities 9,563,722 10,097,019 12,604,620 8,239,085 6,971,821 4,481,518

Total Liabilities 20,223,692 19,354,919 19,761,914 18,688,234 11,936,173 11,000,502

Net Assets (538,960) (326,251) 1,645,916 3,482,913 7,558,005 10,717,397

Issued & Paid up Capital 7,505 7,505 7505 7,505 7,505 7,505

Asset Revaluation Reserve 392,551 392,551 392,551 392,551 392,551 392,551

Retained Earnings (939,016) (726,307) 1,245,860 3,082,857 7,157,949 10,317,341

Total Equity (538,960) (326,251) 1,645,916 3,482,913 7,558,005 10,717,397

6.3 Based on the financial accounts prepared by the external accountants and management accounts we have drawn the following conclusions.

• There was a severe drop in revenue in the 2005 and 2006 financial years. However, gross margins remained steady across these years with little or insignificant change.

• Expenses remained constant from 2005. These would be expected to decrease with the reduction in sales. It is evident that borrowing costs increased substantially indicating a greater reliance by the company on debt.

• The goodwill within the business of $1,702,693 was fully amortised in the draft 2008 accounts. This indicates managements belief that the goodwill was unrealisable if the business was to be sold.

23

pilof7 • The quick asset ratio declined rapidly from the 2006 financial accounts from 1.3 to

below zero indicating the increasing difficulty of the company meeting its debts as and when they fall due. The net assets of the business have also been steadily declining since 2005.

• The company has incurred trading losses since 2006. Such losses are unsustainable for extended periods of time and directly affect the company's net assets. These losses also signal deteriorating cashflows.

6.4 Based on the books and records available to us, we make the following observations which confirm our opinion that the company may have been trading whilst insolvent:

• In the 2007 financial accounts the company's auditor, noted his concern that there was significant uncertainty as to if the company can operate as a going concern.

• The appointment of an investigative accountant, McGrath Nicol, by the secured creditor in early 2008 to assess and review the company's financial position.

• We understand requests of the secured creditor for further funding in 2008 were declined.

• Failure to meet outstanding tax liabilities, resulting in a payment arrangement entered into with the Australian Taxation Office. Our preliminary investigations have revealed that may have defaulted on this arrangement.

• Failure to honour employee superannuation payments since February 2011.

• Persistent and worsening trading losses, net assets and retained earnings since 2006 (refer section 5.3 above).

• A management were full aware of very tight cashflows since November 2008. This was brought to a head in February 2010 when forecasts identified large gaps in cashflows which were unable to be satisfied.

• The engagement of an external consultant, Mr Caine Barends of Dallas Barends to assist with the restructure and turnaround of the business. We understand Mr Barends prepared cash flow forecasts, undertook sales planning with staff and was in discussions with various customers and suppliers regarding the company's financial position. We are unsure as to when Mr Barends first became involved in Orford Refrigeration, however it appears Mr Barends has been involved as early as November 2008. He also provided extra assistance with locating funding to alleviate the cashflow problems the company was encountering. We understand he ultimately was appointed to the position of Chief Executive Officer in October 2010.

• From our review of the company's records, it appears that since 2008, the company has experienced difficulties with paying creditors by the due dates. The company negotiated longer trading terms with some suppliers. Various suppliers had contacted the company regarding their outstanding accounts, with some suppliers placing the company's account on hold.

24

pilof7 • In September 200B, the company's managing director, notified staff that the company

was experiencing financial difficulties and the business was undertaking a review of costs (including staff salaries), the operational structure and processes. In the same notification, the human resources manager position was made redundant effective immediately.

• The records show that on or about March 2011, the company's directors and employees became aware that sales budgets were unachievable. We also note that some suppliers altered their trading terms to COD.

• The company's records showed that the company was in a poor financial position from 200B.

6.5 Based on our investigations into the company's affairs, it would appear that the company may have been trading whilst insolvent as early as mid-200B.

6.6 It would appear that there may be an action for insolvent trading, however substantial further investigation and documentation would be required to definitively determine the timing of insolvency and the quantum of any claim.

6.7 It should be noted however that before taking any such action, consideration will be given as to the directors' ability to satisfy any judgment obtained and the costs associated with taking such an action.

7. RECOVERY FROM DIRECTORS

7.1 We note that from a commercial perspective, any recovery action contemplated by the company should take into account whether the defending party has the capacity to payor sufficient assets which may realise adequate funds.

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

7.3 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.

7.4 It should be noted that before taking any such action, consideration will be given as to the costs associated with taking such action and the directors' ability to satisfy any judgment obtained.

25

pilo~

8. RECEIPTS AND PAYMENTS

8.1 Attached is a summary of the Liquidators' receipts and payments for the period 6 May 2011 to 9 October 2011.

9. LIKELY RETURN TO CREDITORS

9.1 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 Costs of realising and maintaining fixed assets

Estimated Surplus/(Shortfall) to Secured Creditor

Floating assets: Estimated Realisations: U nfactored Debtors Stock/Spare Parts Finished Goods Unfair Preferences Voidable Transactions Total Estimated Realisations Less: 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

Amount available for Secured Creditor Balance owing to Secured Creditor - floating charge Amount available for Unsecured Creditors

26

Best Case Worst Case $ $

1,700,000 1,615,000 80,000 75,000

3,700,000 3,400,000 Unknown Nil

5,480,000 5,090,000

8,056,277 8,056,277 560,000 600,000

8,616,277 8,656,277 (3,136,277) (3,566,277)

170,000 150,000 250,000 175,000 450,000 420,000

Unknown Nil 600,000 Nil

1,470,000 745,000

130,000 250,000 500,000 520,000

840,000 Nil

324,223 324,223 457,345 457,345 514,878 514,878 404,196 404,196 983,361 983,361

2,684,003 2,684,003

Nil Nil 3,136,277 3,566,277

Nil Nil

pilaf? 9.2 The above estimates are subject to recovery of the company's remaining assets and

potential voidable transactions.

9.3 A return to priority creditors, if any, is subject to the recovery of funds from the voidable transactions. If no such funds are realised, there will be no return to priority creditors.

9.4 It should be noted that substantial further investigation is required before being in a position to estimate the likely return from voidable truncations. We expect that this assessment may take some months to complete.

9.5 There is unlikely to be any return to unsecured creditors.

la. LIQUIDATORS' REMUNERATION

10.1 Please find attached our Remuneration Report.

10.2 At the meeting of creditors to be held on 31 October 2011, creditors will be asked to approve the remuneration of the liquidators, their partners and staff as follows:

• 6 May 2011 to 9 October 2011 in the amount of $451,323.40 (including GST); and • Prospective remuneration from 10 October 2011 to a maximum of $285,000

(including GST).

10.3 Work undertaken to date is detailed in the attached Remuneration Report and throughout this report.

11. FINALISATION OF THE LIQUIDATION

11.1 We will expedite the finalisation of this administration pending:

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

b) Finalise realisation of the company's plant and equipment, stock and finished goods; c) Exit the company's Toowoomba premises; d) Recovery of the payments made to Mau reen Orford; e) Investigate payments made to Orford Bros Pty Ltd and commence recovery action; f) Investigate payments made and fridges sold to Chilimint and commence recovery

action; g) If sufficient funds exist from realisations, calculate and pay a dividend to priority

creditors; h) Conducting a public examination of the directors, if required; i) Convene final meeting of creditors, if required; j) Completion and lodgement with the ATO of Business Activity Statements as required; k) Completion and lodgement with the ASIC of six monthly form 524's "Summary of

Receipts and Payments" until the administration is finalised; I) Attend to all statutory matters; and m) Application to the ASIC to have the company deregistered.

27

pilof7 Should you have any queries in relation to this matter or information that may assist in our investigations, please do not hesitate to contact Ms Liz Yang (eyang@pilotpartners.com.au) or Mr Cameron Woodcroft (cwoodcroft@pilotpartners.com.au) of this office.

".-~" ..... 13th day of October 2011.

NIGEL MARKE For and on bell If of the joint and several Liquidators

28

ilart FORM 529 Subregulation 5.6.12 (2)

Corporations Act 2001

NOTICE OF MEETING OF CREDITORS

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

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

Notice is given that a meeting of the creditors of the company will be held at the Downs Room, Burke & Wills Hotel, 554 Ruthven Street, Toowoomba Qld 4350 on 31 October 2011 at 11.00am.

Agenda:

(i) To determine whether a quorum eXists; Oi) To consider the Liquidators' Report to Creditors and to receive and discuss any

recommendations of the Liquidators; (iii) To consider further recovery action in relation to the company assets; (iv) To consider the remuneration of the Liquidators for the period from 6 May 2011 to 9

October 2011 in the amount of $451,323.40 (GST inclusive); (v) To consider the future remuneration of the Liquidators; (vi) Questions to the Liquidators; (vii) Any other business.

Dated this 13th day of October 2011.

NIGH MARK For and on be alf of the joint & several liquidators

FORM 532 Regulation 5.6.29

Corporations Act 2001

Australian Company Number: 009 790 265

APPOINTMENT OF PROXY

*I/*We ........................................................... (if a firm, strike out "I" and set out the full name of the firm) of ................................................... (address), a creditor or member of Orford Refrigeration Pty Ltd (In Liquidation) appoint ....................................... (name, address and description of person appointed) or in his or her absence ....................................................... as *my/*our *general/*special proxy to vote at the meeting of creditors and members to be held on Monday, 31 October 2011 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

2011.

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

day of

*Omit if not applicable

2011.

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 my knowledge and belief, remains unpaid and unsatisfied.

*3. 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 2011.

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

ORFORD REFRIGERATION PTY LTD (IN LIQUIDATION) ACN 009 790 265

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

SUMMARY OF RECEIPTS AND PAYMENTS FOR THE PERIOD 6 MAY 2011 TO 9 OCTOBER 2011

Receipts Cash on Hand GEERS Advance GST Refund Interest Received Pre-Appointment Debtors (Factored) Pre-Appointment Debtors (Unfactored) Refund - General Refund - Pre-Appointment Insurance Return of Employee Float Sale of Finished Goods Sale of Motor Vehicles Sale of Plant & Equipment Sale of Scrap Metal Sale of Spare Parts Payment from Secured Creditor in Respect of Unfactored Debtors

Total Receipts

Payments

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

Total Payments

Net Position

Represented by Cash at Bank Debtor Finance Facility Total

$

$ $ $

Total $

652.50 2,223,417.68

12,452.00 5.34

2,991,219.28 86,906.15

809.98 16,197.52

1,000.00 320,736.64

65,514.90 1,515,889.10

9,288.40 172,822.10 120,612.98

7,537,524.57

147,200.16 151,776.43

122.00 626.40

2,677.38 24,844.06

158.84 1,799,769.47

32,413.30 410.27 614.67

24,406.14 16,515.65

215,000.00 1,749.83

49.00 4,101.00

3,084,329.25 25,340.87

3,520.00 3,461.57

14,056.95 2,518.65

10,138.28 2,168.21

11,385.00 1,607.59

5,580,960.97

1,956,563.60

1,951,563.60 5,000.00

1,956,563.60

pilof7 REMUNERATION REPORT

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

PILOT PARTNERS Chartered Accountants

LevelS, 175 Eagle st. Brisbane 4000 PO Box 7095 Brisbane 4001 Queensland Australia

P +61 7 3023 1300 F +61 7 3229 1227

pilotpartners.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 remu neration 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 / 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:

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

o 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.

ABN 50 063 6B7 7691 Pilot is a registered trade mark licensed to Pilot Partners I Liabilitylimited by a scheme approved under Professional Standards Legislatiorl Member of Ncxia International, a worldwide network of independent aceountingand consulting firms.

pilaf?

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 31 October 2011 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 6 May 2011 to 9 October 2011 in the sum of $451,323.40 (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 18 May 2011, creditors approved the future remuneration of the Liquidators to a maximum of $215,000.00 (inclusive of GST). The Liquidators have drawn an amount of $215,000.00 in respect of the past remuneration for this period.

We note that in addition to the above, the Department of Education, Employment and Workplace Relations funded our remuneration and expenses for work rendered in respect of verification and distribution of employee claims under the General Employee Entitlements and Redundancy Scheme in the amount of $43,186.00 (including GST).

We anticipate our remuneration over the course of the next four to six months of the liquidation to be in the order of $285,000.00 (including GST).

Liquidators Prospective Remuneration "That the future remuneration of the joint and several Liquidators, their partners and staff from 10 October 2011 be approved to a maximum of $285,000 (including GST) and that they be calculated by reference to the hourly rates set down from time to time by Pilot Partnersi and such rf!muneration 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 "Al 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 6 May 2011 to 9 October 2011.

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 six months of the liquidation.

2

pilaf? 3. Disbursements

Orford Refrigeration Pty Ltd (In Liquidation) Remuneration Report

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

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

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

• B2 disbursements are internally provided non-professional costs such as photocopying and document storage. B2 disbursements 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 downloaded from the IPA web site www.ipaa.com.au or alternatively a copy can be obtained if you contact this office.

NIGEL MARKEY For and on beh f of the joint & several L uidators

3

pilaf?

Orford Refrigeration Pty Ltd (In Liquidation) Remuneration Report

Pilot Partners Hourly Firm Rates Effective 1 July 2011

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

Description Description of Level of Experience Rate $/Hour of Staff (Excl GST) Member

Appointee / Official Liquidator/ Registered Liquidator and/or Trustee, 470 Director 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 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 associated 250 - 390 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 CA or 200- 250 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 equivalent. 150 - 200 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 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 diploma. 95 Required to assist in administration and day-to-day fieldwork under su pervision of more senior staff.

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

Computer Appropriate skills including machine usage. 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 2011.

4

Pilot Staff Position $/hour Total actual (ex GST) hours

Nigel Markey Appointee 470 212.8

Ann Fordyce Appointee 470 72.2

Bradley Hellen Director 470 3.2

Jane Leeuwendal Manager 3,0 2.7

Elizabeth Yang Manager 250 369.5

Julle Dorney Manager 260 0.2

]ennifer Veltch Senior 195 4.0

Zahra Richards Senior 165 17.5

Zahra Rlchards Senior 175 2.5

Cameron Woodcroft Intermediate 135 209.2

Cameron Woodcroft Senior 150 210.5

Joseph Rlchards Senior 150 13.7

Kylee Sempf Intermediate 145 0.1

Joshua Meggs Intermediate 135 0.4

Joshua I'\eggs Intermediate 145 0.'

Ne!! MitcheU Intermediate 140 322.9

Shaun Lu Intermediate 120 0.7

Shaun Lu Intermediate 130 I., Angus Boyd Intermediate 100 308.7

Angus Boyd Intermediate 110 85.2

Angus Boyd Intermediate 125 137.8

Wiriya plukavec Intermediate 120 44.1

Slmone Zhao Intermediate '0 3.6

Elizabeth Dyett Secretary/WPQ 130 21.8

lucy Dulgnan Secretary/WPQ '0 17.8

lucy Dulgnan Secretary/WPQ '5 22.4

2,086.3

GST

TOTAL (including GST) I 2,086.3

Average hourly rate

Annexure A1

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

FormerlyTrading as ,"Orford Refrigeration" and "Orford Sign Shop" ("Orford Refrigeration")

Calculation,of Remuneration for the period 6 May 2011 to 9 October 2011

Total Task Area ($) Assets Creditors Employees Trade on

h" , h,. • h,. • h,. • 100,016.00 69.9 32,853.00 35.0 16,450.00 14.9 7,003.00 1.2 564.00

33,934.00 30.5 14,335.00 15.7 7,379.00 0.4 188.00 1.3 611.00

1,504.00 - - - - - - - -1,053.00 - - - - 2.7 1,053.00 - -

92,375.00 156.5 39,125.00 117.3 29,325.00 5.3 1,325.00 -52.00 - - - - - - - -

780.00 2.2 429.00 1.8 351.00 - - - -2,887.50 2.8 462.00 - - 14.5 2,392.50 - -

437.50 2.5 437.50 - - - - -

28,242.00 103.9 14,026.50 61.8 8,343.00 4.8 648.00 1.5 202.50

31,575.00 110.0 16,500.00 33.7 5,055.00 '.3 1,395.00 - -2,055.00 4.4 660.00 3.1 465.00 1.1 165.00 - -

14.50 - - - - - - - -

54.00 - - - - - - - -130.50 - - - - - - - -

45,206.00 139.0 19,460.00 151.8 21,252.00 5.6 784.00 - -84.00 0.7 84.00 - - - - - -

247.00 - - - - I., 247.00 - -30,870.00 150.0 15,000.00 63.2 6,320.00 45.9 4,590.00 -

9,372.00 47.3 5,203.00 17.1 1,881.00 4.1 451.00 - -17,225.00 73.1 9,137.50 25.3 3,162.50 '.7 1,212.50 - -

5,292.00 1.6 192.00 14.1 1,692.00 5.0 600.00 -324.00 - - - - - - - -

2,834.00 6.1 793.00 5.1 663.00 0.2 26.00 0.7 91.00

1,602.00 3.0 270.00 2.4 216.00 - - - -2,128.00 - - - - 5.6 532.00 - -

$410,294.00 903.5 $168,967.50 547.4 $102,554.50 131.00 $22,612,00 4.70 $1,468.50

$41,029.40 $16,896.75 $10,255.45 $2,261.20 $146.85

$451,323.40 903.5 $185,864.25 547.4 $112,809.95 131.0 $24,873.20 4.7 $1,615.35

$216.33 1$ 205,721 1$ 206,081 1$ 189,87 ~ 1 $ 343.691

Investigation Administration Statutory h,. • h,. • h, • • 78.5 36,895.00 12.5 5,875.00 0.8 376.00

1704 8,178.00 6.' 3,243.00 - -- - - - 3.2 1,504.00

- - - - -41.0 10,250.00 45.8 11,450.00 3.6 900.00

- - - 0.2 52.00

- - - - - -- - 0.2 33.00 - -- - - - - -

10.0 1,350.00 27.2 3,672.00 - -'.0 1,350.00 46.6 6,990.00 I., 285.00

1.0 150.00 2.4 360.00 1.7 255.00

- - - - 0.1 14.50

- - - - 0.4 54.00

- - - - 0.' 130.50

3.7 518.00 21.5 3,010.00 1.3 182.00

- - - - - -- - - - - -

18.5 1,850.00 31.1 3,110.00 - -3.5 385.00 11.7 1,287.00 1.5 165.00

16.5 2,062.50 lOA 1,300.00 2.8 350.00

- - 17.8 2,136.00 5.6 672.00

3.6 324.00 - - - -0.4 52.00 5.0 650.00 4.3 559.00

- - 11.7 1,053.00 0.7 63,00

- - 16.8 1,596.00 - -

203.1 $63,364.50 267.6 $45,765.00 29.0 $5,562.00

$6,336.45 $4,576.50 $556.20

203.1 $69,700.95 267.6 $50,341.50 29.0 $6,118.20

1$ 343.19 I 1 $ 188,12 1 1 $ 210.97

pilaf? Annexure A2

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")

Task Area

Assets $185,864.25

Creditors $112,809.95

Summary of the type and purpose of work undertaken for the period from 6 May 2011 to 9 October 2011.

Description 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 charqes Debtors Correspondence with debtors

Reviewing and assessing debtors ledgers Liaising with debt collectors and solicitors

Stock Conducting stock takes Reviewing stock values Uaisinq with Durchasers

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

Liaising with owners/lessors Tasks associated with disclaiminQ leases

Insurance Identification of potential issues requiring attention of insurance specialists correspondence with insurers regarding initial and ongoing insurance requirements Reviewing insurance policies Correspondence with previous brokers

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 t

email and post Correspondence with committee of creditors members

Retention of Title Claims Receive initial 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 adjudication

Secured creditor reporting Preparing reports to secured creditor Responding to secured creditor's queries Dealino with fixed or floatino charoes or both

Creditor reports Preparing reports, circularsl notices to creditors notke of meetingsl agendas, remuneration for fee approval meeting and Qeneral reports 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 o~ 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 immediatelv

6

pilaf? Task Area

"H" '"' 'Y

GEERS

Employees $24,873.20 lof

Workers compensation claims

Other employee issues

Trade On Management Trade On $1,615.35

Sond~cting. investigation, Searches etc.

Investigation $69,700.95

Legal Matters

Correspondence with others

Document Administration maintenance/file $50,341.50 review/checklist

Orford Refrigeration pty Ltd (In Liquidation) Remuneration Report

I i ,and follow up enquiries via ,oI_~, M ..

Maintain employee enquiry ~~gister Review and prepare correspondence to creditors and their representatives via facsimile t ema!1 and post Preparation of letters to employees advising of their entitlements and options available Receive and prepare correspondence in response to employees

i to'leave I , with

Preparing notification spreadsheet Preparing GEERS quotations

, GEERS n;. "i' t;nn.

-, -, I Reviewing files and company's books and records Reconciling superannuation accounts Reviewing awards Liaising with I Review insurance policies Receipt of claim Liaising with insurers regarding claims Identification of potential issues requiring attention of insurance

i ,nee with Child S.u~port ,nee with

Liaising with suppliers Liaising with management and staff Attendance on site Liaising with superannuation funds regarding contributions,

lof I Searches (ASIC, titles, Motor vehicle, credit file etc.) Meeting with directors Correspondence to directors Demand and collection of company books and records Reviewing books and records Review and preparation of company nature and history Conducting and summarising statutory searches Preparation of comparative financial statements 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

'" i phoenix company activity by the directors related party

."". ""' meetings todiscuss status of I

Preparing brief to solicitors Liaising/correspondence with solicitors regarding recovery actions Attending to negotiations

r to I Other correspondences not specific to other milestones

i i . a"d~j~jstration review

I including first month, then 6 monthly

Set up file & client code Preparation of file notes and internal memos Filing of documents File reviews

i IIS[S

7

pilof7 Task Area DescrlDtion

Bank account administration

Strategic Planning / Review, Appointment

Statutory ASIC Form 524 and other $6,118.20 forms

ASIC, ATO & other statutory reporting (533, BAS etc)

Orford Refrigeration pty Ltd (In Liquidation) Remuneration Report

Includes 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 Receints and PaYments Discussions regarding status of administration Management Review, Strategic Planning Review of ADDointment / Indemnitv Documents Statutory Lodgements Preparing and lodging ASIC forms including 505, 524, 5081 911 Lodging Minutes of meeting of creditors CorresrJondence with ASIC reoardino statutorY forms On appointment and day 1 notifications Notification of apPointment Taxation ego Preparing BAS Completing group certificates

8

pilof7 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")

Task Area

Assets [$55,000]

Creditors [$22,000]

Employees [$5,500]

Investigation [$131,000]

Summary of the type and purpose of work undertaken for the four-to-six month period from 10 October 2011

Description Includes Plant and Equipment Liaising with valuers, auctioneers and interested parties

Reviewina asset listings Assets subject to specific All tasks associated with realising a charged asset charges Debtors Reviewing and assessing debtor ledgers

Liaisinq with debt collectors and solicitors Stock Reviewing stock values

Liaisinq with auctioneers Other Assets Tasks associated with realisinq other assets Insurance Correspondence with insurers regarding ongoing insurance

requirements Reviewinq insurance policies

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 floatir)gcharges or both

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

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 meetino

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 Preparation of letters to employees advising of their entitlements 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 Conducting investigation, Correspondence to directors Searches etc. Reviewing books and records

Review of specific transactions and liaising with directors regarding certain transactions Liaisinq with directors reqardinq certain transactions

9

pilaf? Task Area Description

Legal Matters

Adjudicating proofs of debt

Dividend [$33,000 subject to sufficient funds Dividend procedures

being realised] (advertising etc.)

Correspondence with others

Document maintenance/file review/checklist

Bank account

Administration administration

[$5,500]

Finalisation

Strategic Planning / Review Appointment Books and records / storage

Statutory ASIC Form 52.4 and other [$33,000] forms

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

Orford Refrigeration pty Ltd (In Liquidation) Remuneration Report

Includes Preparation of investigation file or notes Recovery of voidable transactions Investigate phoenix company activity by the directors Investigate related party transactions Preparation of supplementary 533 report to ASIC, if required Internal meetings to discuss status of litigation Preparing brief to solicitors Liaising/correspondence with solicitors regarding recovery actions Attending to negotiations Attendino 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 first month, then 6 monthly administration review Set up file & client code 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 / GST / PAYG registration Completing checklists Finalisino WIP Discussions regarding status of administration ManaQement Review Strateqic PlanninQ 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 Correspondence with ASIC regarding statutory forms Supplementary 533 Report Taxation ego Preparing BAS

10

APPENDIX A ORFORD REFRIGERATION PTY l TD (IN LIQUIDATION) ACN 009 790 265 Formerly trading as "Orford Refrigeration" and "Orford Sign Shop"

LIST OF CREDITORS

Amount No. Creditor Name $

• • .. 1 WESTPAC BANKING CORPORATION 8,056,276.91 2 COMMONWEALTH BANK OF AUSTRALIA LIMITED Unknown 3 MERCANTILE CREDITS PTY L TD Unknown

Total Secured Creditors 8056276.91

. . . . • •• 1 LORL YN ADLAON 345.98 2 ASHTON ANDERSON 355.58 3 JOSH ANDERSON 366.61 4 scon ANDERSON 1270.29 5 DAVID ANDREW 2214.92 6 RICHARD ARNOLD 2968.81 7 JEFFREYASH 1 507.49 8 KIRSTY BAIRD 711.24 9 BRADLEY BARNES 70.62 10 DANIEL BEAZLEY 579.09 11 THOMAS BENJAMIN 14107.23 12 JUSTIN BIENKE 920.27 13 BELlNDA BIFFIN 235.98 14 BRADLEY BLlNCO 1654.10 15 KURT BLOMFIELD 859.59

16 DAVID BLOWES 1 936.71 17 ALEXANDER BOM 1716.94 18 GRAHAM BRADSHAW 1 564.97 19 ADAM BRIDGEMAN 840.23 20 ROSS BRIG HOUSE 1 266.33 21 MALCOM BROWN 6 907.73 22 PAMELA BRUMBY 1 023.45 23 BROCK BUCHANAN 367.23 24 lAIN BUCHANAN 846.94 25 BEVAN BUCKLEY 49.40 26 JASON BURTON 1544.39 27 KERRY CARMICHAEL 3 790.35 28 STEVEN CASSIDY 36 157.66 29 MOUR CHAN 943.97 30 SUSAN COBB 294.98 31 ANNA COCHRANE 766.83 32 PETER COCHRANE 1 657.25 33 WAYNE COLEMAN 1 096.63 34 DAVID COLTHUP 461.52 35 GREGORY CRADICK 766.99 36 BREnCROSS 1319.85 37 ANTHONY CROWTON 1057.15 38 DAVID DALLlNGER 1 396.47 39 ANNA DEACON 266.76 40 DAISY DEVELOS 884.99

41 TRACI·ANN DICKFOS 11104.12

42 AMANDA DIGWEED 965.21 43 CALLUM DIGWEED 582.65 44 SHAUN DODDS 930.88 45 SUSSANNE DONNELL Y 1023.19 46 LAUREN EHRLlCH 1431.90 47 CATHY ENGLAND . 48 TANIA ERNST 1 173.01 49 MORGAN ETCHELL 247.55 50 BEVERLEY FACER 26 653.35 51 DORIS FARQUHARSON 1 042.41 52 MOHAMMED FAZIL 1 385.85 53 GEMMAGALVAN 8442.74

ORFORD REFRIGERATION PTY LTD (IN LIQUIDATION) ACN 009 790 265 Formerly trading as "Orford Refrigeration" and "Orford Sign Shop"

LIST OF CREDITORS

Amount No. Creditor Name $

54 ;SARA TLES 832.51 55 1,543.97

56 ISHANE GEITZ 2,746.75 5, DEAN 707.28 58 IGORDON I 20.24 ,,06 59 ISHEI DON 28:..47 60 IRODNEV 1,107.68 61 I GRAHAM 48.000.0C 62 ,784.29 63 ,V GREY 1,135.86 64 IJONATHON 956.41 ~ IMONZAHAFZA 9,409.D1 ~ JAKE HAMIL ON -

67 Iscon HANNA '34.50 68 IJUSTIN HARRIS 920.26

69 IKIM 1,220.70

TRACV HIG~ 1. ~~71~D~AR~RYL~H~IIP~PII ______________________________________ 1-_____ ~9 .• ~5;

72 IJUNE HIPPI 73 IANTHON' JLLlST 169.4 74 lH ~ 42:.9 75 MRYJANE~ 76 'H 220.3 77 ' A\!.!dQ!:! 9.9 78 3EQBQEjUKES .6 79 I KAVANI.C 80 81 I BIOK KEER 82 DAVID KEMP 83 84 GARV KENTWELL 85 MARK

409 ,279.

86ANClE\"K~1 189.79 87 DAVI ~'T~ __________________________________ r-__ ~~1~,1~81~:7 .. ~58 88 15.021.46 89 IBRL;E ,267.16 90 ,EVIN ,E 723.34 91 UES·SALES >1.22 92 IHN 333.40 93 J~ .ADU 800.80 94 ~~<IN~~ ____________________________________ ~ ______ ~4~13~6~ .. 9:~ 95 ~T 825.99 96 DAMIEN LEE 1, >7 IRICKY I 98 DEAN LlNKE 99 I LOVE 100 <IM

JAMES LUWONG 102 'LYNCH

1051 C~~~ARTIN 06 GAVIN I )7 I MARTIN

108 LlAM I

-593.DO

7,555.17 3.626.77

766.99 857.42

18.15 9, '8.88

!1.52

09 ~ARTIN

l1C DAVIDM~fL~~~~:====================================t======~~~~g~ 111 'AMcARTHUR 112 IMCEWAN 113 _YNN MC LAREN 1, 114 ,MC 115 IROSSMC~N 16 ~E

1.

117

:: JWEN~~VILLL~E§[===============================t====~.5~'gu

ORFORD REFRIGERATION PTY LTD (IN LIQUIDATION) ACN 009 790 265 Formerly trading as "Oriord Refrigeration" and "Orford Sign Shop"

LIST OF CREDITORS

Amount No. Creditor Name $

120 JAMIE 121 IRONALD MIDOLO 122 ~ER 123 ISAMUEL MONC 124

125 Ir.HARI F" 846.95

126 CRAIG MIIFI I FR 1.574.98 12; TROY MUL_ER 167.62 128 ULlE 129 ~7,T~jY ______________________________________ -+ _______ ~83~!58:.9~l 130 _E MU~ 1.62 131 IELSON 766.99 132~ NC 634.2l 133 fENC ~.N~ ____________________________________ ~ ______ ~~~-~ 134 I C 203.91 135 DA 96: .54 136 DEA JRI ORD -137 GRI -138 PAL JRi ORD .. 565.05 139 OSBAR 847.67 14C .IAN fTl 1,335.20 141 iYINPANG 453.08 142 I ,393.53 143 IWAYNE PATERSON 1,551.70 144 DEBBIE PAYLOR 1.548.18 145 IBRIAN I 1,089.72 146 I PIT 1,089.27 147 ,TH POLlTSCH ~ 148 (AREN 149 . PRIC 437.85 150 I 42.3: 151 IEMERITA QUINl 999.63 152 IKARL QUIRE 367.23 153 EM MA -154 : REX 94.23 155 : RICHTER 920.27 156 LlLlBETH RICHTER 8.628. '2 157 ,316.07 158 PETERROSEN~~~ __________________________________ ~ ____ ~~865~ .. ~ll5~ 159 TODD ROSS092.15 160 ~ROWE .,631.96 16" RIQ!S!§,RYAN .,600.18 162 JRY 184.4' 163 WALrER SEIDEL .7,696.33

164 -SLOAN 1,1.13. 165 IERIC SMITH 1. 166 IJAMES 920. 167 IPgE'l!.SB..STAINES 91:1 168 rALBOl 84.54 169 C~E,~'YrA~"Y~LL~CO~R--------------------------------------+-------oSi~:3.4~8 170 IEi'HAN D 180.65

171 LLOYD THOMPSON 707.99 172 I TOLEDO 367.23 : 73 (N TOLEDO 962.56 74 TOLEDC 932.47

175 MICK' 'nQ??' 176~ONN fRAIN 313.22 '7 IAMOE VAI ~O 211.80

1781TRE~ W '~R----------------------------------+-----~~2~9,,~81:7~

179 INAl N' .,029.83 18C ,VI 'RS 734.50 181 A- 978.5:

ORFORD REFRIGERATION PTY LTD (IN LIQUIDATION) ACN 009 790 265 Formerly trading as "Orford Refrigeration" and "Orford Sign Shop"

LIST OF CREDITORS

Amount No. Creditor Name $

182 DAVID WEIS

183 SCOTT WEIS 184 GLEN 185 !JOHN I 186

187 WILSON

188 ~EIL "" ~() 189 (AREN WIR

~;~ ~H IN 192 mc WRIGf 193 IG

~;: RICK'~ 196 DE OF nON. EMPL

roTAL

\BL RI ~ATION & AIR 2 IT BLINDS 3 . PARTS 4 ADVANCE WIRE & CABLE P/L 5 A[ ITION 6 ADVANTA,E 7 8 .AGL SAl 9

11 1

lA. IAI IN,

IALLTECH

,(OLe rYL D : PTYL MITEI lE IATION & AIR USTRAL ,prY ,SONS PTY

I I~IN&~ Ne IAL IN PTY

~URITY I AMF~ICS

19 AMG DISTRIBUTORS OLD PTY LTD 20 I CONl 21 \NITECH 22 ANTHONY INAL 23 \NTHONY MANUFACTURIN~NC 24 ARAFURA CATERING EQUI~ 25 A PTY LTD 26 rH &GRA~ I

AN[

IG I

LOGY

; PTYLTD lATION

LACE RELATIONS

I PT

2' A & S R J & AIR -IONING PT TO 28 ASTRO ALLOYS :AUS11 PTY L TD 19 iATLAS I ITICIN ii? I 30 IAUSTRALlAN All i'iif-31 IAUSTRALlAN I 32 IAUSTRALlAN \SS GROUP 33 IAUSTRALlAN C SUPP ES 34 IAUSTRALlAN SI CL ITIES & 35 IAUSTRALlAN' (A IN OFFI 36 IAVERY ,P/L 37 AVIS AUSTRALIA 38 39

lATION &

:PTYL DT/AS

DJI

40 IT 4: :& ~

:;=iiST COMPL rE ~I&AIR I

I PTY LTD ON SERV

44 GROUP PTY

PTY LTD

27,715.89

1 oon.,n

-

138.06

5

2,221,417.68 -

2,73:

214.00

1,576.L5

L8. !7.15 753.50 ;54.00

;3 48 .17

.13 .290 '8

1047 lAC

213040 4112.00

10.00 3,546.97

256.L1 1,980.01

-

550.00 09

462.00 389040 50,.88 52:,,96

6,794.72 2.858.55

.5C 8,305.50

489.00 775,

14,034.22

199.52 --

L18.25 1,151. 70

.2: 00 10,586.78

ORFORD REFRIGERATION PTY LTD (IN LIQUIDATION) ACN 009 790 26S Formerly trading as "Orford Refrigeration" and "Orford Sign Shop"

LIST OF CREDITORS

Amount No. Creditor Name $

45 IBFS PLASTICS PTY 8,073,12 46 IBM I SERVICES 574.47 4 ; ELECTRICAL 256.30

8MS TRE 3,673.57 4 IE~[D~SCO~NI~REF~'E~NG~INJIE~ER1~iS------------------------------~----~~741'4~,.1~'

GASES mON AND AIR

I-f;-r,~;i' AC Pl JEI

4 55 I : RI

IY lTD TIA REFRI

lATION 56 I BLACK 57 BSC MOTION LOGY 58 : & I lATION 59 ;,E,C,A, PTY l TD 60 CAFE DIRECT 61 I rED

IN

CAPITAL .h"","v~ AUSTRALIA lTD 62 63 ~AREL AUSTRALIA PTY TO 64 I, IN 'IONAl PIL 65 IN SOLUTIONS 66 ,WORL 6' CATER COOL P--Y TO

liG

AUSTRALIA PTY TO

68 vr I o".,'{ SALES & SERVICES CATERING EQUIPMENT

69 ,AIR lATION 70 ,REFRIG I 7 ~HAMBER::JF '5MMERcE & INDUSTRY 72 )RA 5NDiTiOr ,& lATION 73 ' HENRY ; P/L 74 ~ILLE MTION & EL 75 D HI,TEC: P( 76 CHEPAuSTRALlA '7 ~HIL I PTY re 78 CHILlMINT PTY TO 79 CHINA ,C 8C ;HIZMC' PTY LTD 8: 82 CL GLASS 83 _IFF~SON

UCTION

84 ~NC'~SPTYlTD 85 COASTLINE I 'ION 86 TO lAST lATION 87 nON & AIR ::JNDITIONING 88 JR lATION 89 GRP 90 91

lATION 'T 'LTD

92 COM] 93 CO~"

I IN SERV, lAW, KNIFE

I & INDUSTRIAL

I ,FOOC 'ASIA] TO

rED AL OYS

1CO ~CEQ~ 01 X I ENTERPRISES ,02 COOMA AIR INING &

103 CORBY OR FORD .1..Qi. ~ORPORATE 105 CPI PAPERS

, PTYLTD

106 lK~(TOC 107 ~RICH' ON PL~ 108 ~L ; & I 109

" 'V" PTY lTD

I ON

PTY LTD

(AUSTRALIA) PTY TO

146.52

-106.70 2.7,93 298,04 245,10 575,30

4,393,52 1,375,67

617.56

48,693,

990, ,007,

4,

1,91 2C

125,19: 3,795, 1.573,

4

-

3: 14' 00 l' 1,50 192,50

<mi 124.96

575,30 440,00 956.25

1,397.00 6.40, .50 3,55 ,25

12,474.00 143.00 39000

4 16,)16,

ORFORD REFRIGERATION PTY LTD (IN LIQUIDATION) ACN 009 790 26S Formerly trading as "Orford Refrigeration" and "Orford Sign Shop"

LIST OF CREDITORS

Amount No. Creditor Name $

III ; rAUSTl PTY TO II DARCY IAN 112 l13 DDI DISPLAYS l14 115 DELTEC MANUFACTURING PTYLTD l16 ; PTY l17 DMS I 'E 118~ TTH 1 ELECTRICAL l19 DOVE HY( l21 ; AUl I 'E 121 .22 l23 ; HEADWEAR 124 lE, . EL LATING .25 ~Z Pty Lld

i~~ I JT LIMITED .INC

~8 EHI AUSTRALIA PTY TO ~9 El : PRODUCTS o ELECTRO CHEMICAL I i PTY LTD T/A ECE FAST

_EGANi I.G LINE _GAS

3AFE I liA ~FAE (L

13, NLEI 136 13: TO P _TD 138 EZYCHILL

90,716.03 596.74

d 10,046.30 11 840.0C

513.3C 1.320.00

1 7,21 ~8

)0

15. 2.

10,521.00

1,309.83 80

139 'M' OOl & GUAGE 18,773.17 140 rH & REYNOLDS P/l l26.50 141 i & 7 l3 142 FASCC -lA PTY TO 38 143 FOX I PTY TC :.51 144 1 SOFTWARE PTY LTD .71 145Fu Lun·Top Grade~ 79 :.97 146iFUJIXEROXBUS~~C~EN'T.rR~E------------------------------~----~~~~ 147IFUJIFILMAU~RAUA~p>lT~ry7L.T~rID~------------------------~----~1~1'9~,~

i81G ~AUSTRAIIAPTYLTI

:9 IGA lDEN CITY CABS

,y PC o JCITY ~

IG AND SANDPLASTING iY I AND AIRCON

I I IN

158 l59 160 ~ 161 GTS REFF GERA I 162 ; El ;TRI ~AI

OAE' Ht USE I I IN

163 GWB I JC PTY TO 164 HADENY 10 165 HALlFA~EL GRC 166 HAI LY ~S PTY 167 HB RECRLI 168 HB I G PTY

, PTYLTD I IG

8. 63: 176.

1.0945 95.275~

591~ 316.25 288.55 350.90 238.15

',475.00 10

319.00

577.28 08

169 HE TI -170 I PTY LTD 12 :.64 .71 ~STRALlA 307,45 1.63

.72 )N~~~~~c===============================~====S2~~:3~ .. 3~:~1~6 173 iHILLS M2 TOU:'" i.95 J4 IHIWAY HYDRAULIC I 201 .25 i75 IHRX TPT PTY lTD T/A IAN HORREX lA . & VAN DAMME OR' 57. 09.98 1761HSE ;ATIONS .,064.53 l77 IIAN NICHOLAS 3,549.85

ORFORD REFRIGERATION PTY LTD (IN LIQUIDATION) ACN 009 790 265 Formerly trading as "Orford Refrigeration" and "Orford Sign Shop"

LIST OF CREDITORS

Amount No. Creditor Name $

L78 I 408.38 179liCON PLASTICS PTY LTD 180 IIM REALrY PTY L 156.976.30 18: IIMI ~ORNELlUS AUSTRALIA 68.437.89

IMPI 81 JFFI lE 261.14

I-T.<*~ IY JMP IN~~AILERS PTY TO 2.:.2.~~

INSI \~Y 'P/L • 18 INTI lE) !* 123.29 11 1& 15,835.06 11 1& R lATION PTY LID 363.62

18 J&S IPTYUD~~~ ________________________ -r ____ ~19C~.' 19C RII;HARDSB &-iY TO •• 191 JAN OOM AC I I P~~Y TO 192 JOHN BOSSY REI I AND AIR I G 242.00 193 JOHN GRAY MI 4.554.0C 194 JOHN MUNRO I I & I I 195.85 195 JOYCE FOAM PTY LTD 3,708.10 196 JUST ;HILL I 594.55 197 JUST 631.40 198 I COOKERS AUSTRALIA 0 199 .802.50 200 lTS PT TO 201 !!': 202 <EY TUBING & EL

. SERVICES I . INDUSTRIES

203 \ROYR 204 'lCIAL 205 LEER ICE 206 J FORKLIFT AUSTRALIA 207 IKOOLFOAM PTY LTD 208 OOLRITE 209 .ANE lVE 210 .lAM 21 .IFELlNE DARLING

I&AIR

212 I SENTRY GROUP PTY LTD 213 .INDE I . HANDLING

IG

214 IMAI;H"ifJERY FORUM PTY 215 IMACKIEELECTRICAL & RI IN PTY TO 216 i PTY LTD 2:.7 MAUREEN'

.120.50 5: .585.34

06.90 85,657.94

6: .7: 9,043.72

11,170.03 1 001.30

22.85 00

!2.00 J16.00

74,755.71 144.83

1,996.50 809,000.00

218 'UHu~p'T"rY_L.1T __ D __________________________ +-__ ~2~1..4~\3~8i.~.00 19 ~RATH~OL 3./90.17

22C ~LEY oN 407.0C STORAGE

221 222 MEX 223 MID COAST AIR I G & I 224 MOE I I IN I 225 ~6INDL I LTD

MPS I i&E~

3.439.00 495.00 471.88 286.00

L7.646.67 4.431

96. ~8 'AIRC~

.Y HEATING & ('i 43. I 95 .

. FC OC "NTRE . . A:nON REID l31

. ACON AND I I PTY 67

~ 'TY~~~======~~14'~ ~ I ~N 98· 231 J WEAT mON 24: . ~INPA PTY TO 5.44' 1.42 ...ll§.. DFFICE OF STATE 'NSW .2.236.

239 ,OF STATE ,OLD 294,877.42 24C OF STATE ,VIC 6,879.85 241 OF STATE : WA 242 . METALAND· 2,663.10

ORFORD REFRIGERATION PTY LTD (IN LIQUIDATION) ACN 009 790 265 Formerly trading as "Orford Refrigeration" and "Orford Sign Shop"

LIST OF CREDITORS

Amount No. Creditor Name $

243 ONESTEEL 244 245 flC 246 =c 0

! 247 =0 u LC

248 ,PR:

249 IP.O.S.M 250 I

,PTY LTD ,T & I

lA: )N &AIR iPl 'ATF , 11'-'<> Y L TO

lATION & AIR, I FREIGHT

I PETER ANC DRNA 81 H

-IONING ) L I rRUSl

I IG PTY TO

IPETER DATES REFI I I IN & AIR CONDI i PTY IPHILlPS LIGHTING AUSTRALIA

IANC I I IG PTY

8.311.74 ,721.473.28

139_70

357,"" nn

78,735.61 174.35

174 hn, .7

154.00 612.15

150,758.30 495.

IPI ; PTY 15,615. 2571P( 374. 2581P&M R~ER PTY 264.

259IPORT~~)~Y~~I~~~I~INUI&G'A~\IIR[\IcccQJN~[D~IITIQHffi~=================t=======t1.l2~5 .. ~ CV" I ~"" INDUSTRIAL SALES

260 261 PRESTIGE COMPUTER TtA PRESTIGE 262 . PTY TO 263 'SG KRS I i (NSW: 264 lAD AUSTRALIA PTY L TO

265 lCC (NSW) PTY L TO

266 OLD

IM PLASTIC ;R LASER

IREHAU PTY 274 D, GPO 275IREXELAUS~IA 276 IRIBBON WOND

I IN i PtL

. SALE

277 IR & L lATION & AIR, -IONING PTY LTD 2781RMAX 279 IRS CC ,NTS PTY LiMITE[ 280lRL -ION ~ lATION AN[ AIRCONDr ~2 S & G GROUP PTY TO 283 SAL, 184 IIN (AUSTRALIA) PTY TO 285 ,PTY LTD 286 IN

187 )~~ 288 CR HI IG I:lL

6,803.78 5.598.45

18.642.54 290.00

360.75 18000 468.05 175.40

-33.00 ~2 .

6, .5.

3. 15, 66.54

76.0C i3.9C

627.00 .25.68

3,938.87 1,474.00

38.6: !32.00

1,627.34 289 3EDL W[Y,LTO

~~~!~~~TY 563.;~ 292 ,A, ~ I 726.00 ~~NNATI~~~~1~RIE~RS ________________________________ +-______ ~9l~!59.~08 i2941SiMS REFRIG'ER'A" _

295 I JND. 287.11 296 ISOUTH OLD MP : H 669.56 297 ISOUTH TMBA UG~' CLUB 3,000.00 298 ISOUTH WEST 13.84 299 ISOUTHERN Cl' CONTROL 743.89 30C IN': -3011STATE PAYRC 1.340.32 302 ,TEELFORCE ~ 2.157.85 303 JA n ME-AI. FABRICATORS 304 IDGE El I. SERV. & SES INDUSTRIAL CON' 93.50

ORFORD REFRIGERATION PTY LTD (IN LIQUIDATION) ACN 009 790 265 Formerly trading as "Orford Refrigeration" and "Orford Sign Shop"

LIST OF CREDITORS

Amount No. Creditor Name $

305 SUMTIN ELECTRICAL -306 SUNRISE ELECTRICS CAIRNS 176.00 307 T.H & J.M GRAHAM 107.80 308 TELSTRA 20680.34 309 TEWS TRANSPORT PTY L TO (LIBERTY FINANCIAL) 159.84 310 THE HEALTH ADVANTAGE 9734.82 311 THERMAL COMPONENT TECHNOLOGIES PTY L TO 16506.77

THERMO-PRO COMMERCIAL REFRIGERATION 312 23 142.59 313 THOMAS MARSH AND CO PTY LTD 14622.54 314 TOLL NORTH PTY L TO T/AS NQX 52368.33 315 TOLLS SPD 4 173.12 316 TOOL TECH PTY L TO 21 491.36 317 TOOWOOMBA OFFICE SUPPLIES 9628.30 318 TRADELlNK PLUMBING SUPPLIES -319 TSCO PTYLTO 471.58 320 UES (INT'L) PTY LTD 974.60 321 UNITED REFRIGERATION PTY LTO 1 568.22 322 VANTAGE PERFORMANCE 26688.00 323 VISY INDUSTRIES -324 VT INDUSTRIAL COATINGS 72 783.71 325 W A & K M CHARD REFRIG & AlC 342.65 326 WAGGA CATERING EQUIPMENT 264.00 327 WALLER'S INDUSTRIAL HARDWARE 985.22 328 WARWICK PRESSED METALS 895.50 329 WARREN WARD REFRIGERATION 311.97 330 WATSONS RETRAVISION & FURNIT 309.25 331 WAYNE KEMPSTER COMMERCIAL REFRIGERATION 274.45 332 WESTPAC BANK -333 WILSON REFRIGERATION & AIRCONDITIONING PTY LTD 176.00

WIRE BY DESIGN PTY LTO 334 10 093.55 335 WRIGHT REFRIGERATION 28B.09 336 WORKCOVER QUEENSLAND 36903.50 337 WPM SHEET METALS 896.50 338 YARRAMAN PINE PTY LTD 714.49

-Total Unsecured Creditors 12,292,870.02

-Total Secured Creditors 8,056,276.91

-Total Priority Creditors 2,743,178.87

-Total Creditors 23,092,325.80

APPENDIX B

Listing of Intellectual Property

Table 1: Patents, Trademarks and Designs subject to IP sale agreement between Orford Refrigeration Pty Ltd and Roderick Abif pty Ltd

Patents Application No. Description Status Current Applicant 2005100680 Refrigeration system Sealed Roderick Abif Pty Ltd

with dual evaporator 2005100677 Refrigeration cabinet Sealed Roderick Abif Pty Ltd

with improved airflow 200163562 An improved refrigerator Lapsed Orford Refrigeration

shelf Pty Ltd 200118414 Thermostat controlled Lapsed Orford Refrigeration

Pty Ltd 200072006 Improved airflow Lapsed Orford Refrigeration

arrangement for a Pty Ltd refriqerator

200072005 Improved mullion Lapsed Orford Refrigeration assembly Pty Ltd

Trademarks Trademark No. Description Status Current Registrant 1244016 The word 'Orford' and Registered/Protected Roderick Abif Pty Ltd

Orford loqo 836464 The word 'Orford' and Registered/Protected Roderick Abif Pty Ltd

Orford logo 1228219 The words 'Eco Chill' Registered/Protected Roderick Abif Pty Ltd 1244040 The words 'Eco Chill Low Registered/Protected Roderick Abif Pty Ltd

Energy' and Eco Chill Low Energy logo

470651 The words 'Orford Removed - Not Orford Refrigeration Toowoomba' and Orford Renewed Pty Ltd logo

1048240 The word 'Orford' and Lapsed/Not Protected Orford Refrigeration Orford logo

Designs Desi'ln No. ReQistration Status Expirv Date Current Owner 200514129 Cu rrently not renewed 24 September 2010 Orford Refrigeration

Pty Ltd 200514128 Currently not renewed 24 September 2010 Orford Refrigeration

Pty Ltd 199904098 Cu rrently not renewed 6 July 2002 Orford Refrigeration

Pty Ltd 199201053 Currently not renewed 30 April 2008 Orford Refrigeration

Pty Ltd 198607610 Currently not renewed 25 November 1992 Orford Pty Ltd 198607609 Currently not renewed 25 November 1992 Orford Pty Ltd

Table 2: Patents and Trademarks owned by Orford Refrigeration not subject to IP sale agreement between Orford Refrigeration Pty ltd and Roderick Abif pty ltd

Patents Aoolication No. Descriotion Status Current Aoolicant 2000PQ9655 An improved refrigerator Lapsed Orford Refrigeration

shelf Pty Ltd 2000PQ5881 Thermostat controller Lapsed Orford Refrigeration

Ptv Ltd 1998088396 A refrigerated display Lapsed Orford Refrigeration

cabinet Pty Ltd 1998058307 An improved Lapsed Orford Refrigeration

refrigeratinq mechanism Ptv Ltd 1998055345 An improved refrigerated Lapsed Orford Refrigeration

cabinet Pty Ltd 1997P05697 An improved Lapsed Orford Pty Ltd

refrigeration mechanism 1997P05142 An improved Lapsed Orford Pty Ltd

refriqeration cabinet 1996075341 A space indicator Lapsed Orford Refrigeration

Ptv Ltd 1994056486 Fluorescent light fitting Lapsed Orford Refrigeration

Pty Ltd and Mantova Marketing Pty Limited

1988024073 An improved Lapsed Orford Refrigeration refrigeration cabinet Pty Ltd

Trademarks Trademark No. Descriotion Status Current Reqistrant 357421 The words 'Kwik Kleen' Reqistered/Protected Orford Bros Ptv Ltd 488937 The words 'Gourmet Removed - Not Orford Bros pty Ltd

Twin' Renewed 488934 The words 'Dough Boy' Lapsed/Not Protected Orford Refrigeration

and Douqh Bov loqo Ptv Ltd 488935 The words 'Fish File' and Lapsed/Not Protected Orford Refrigeration

Fish File logo Pty Ltd 488936 The words 'Easy Thaw' Lapsed/Not Protected Orford Refrigeration

and Easy Thaw logo Pty Ltd

APPENDIXC

Historical Profit & Loss Statements

30/06/08 30/06/07 30/06/06 30/06/05 30/06/04 Orford Refrigeration p~ Ltd $ $ $ $ $

Revenue from ordinary activities 30,376,988 30,223,578 42,465,746 49,394,596 31,478,943 Discounts and Rebates

Total Income 30,376,988 30,223,578 42,465,746 49,394,596 31,478,943 % Increase in Income 1% -29% -14% 57%

less Cost of Goods Sold Changes in inventories of finished good and work in progress 1,176,807 (691,735) 1,934,538 (472,340) (1,414,259) Raw materials and consumables used 13,103,505 14,280,374 16,795,979 25,873,549 15,302,713

Total Cost of Goods Sold 14,280,312 13,588,639 18,730,517 25,401,209 13,888,454

Gross Profit 16,096,676 16,634,939 23,735,229 23,993,387 17,590,489 Gross Margin (%) 53% 55% 56% 49% 56%

Expenditure Employee benefits expense 8,496,484 9,787,208 15,071,902 12,311,251 9,778,536 DepreCiation and amortisation expenses 2,569,218 1,060,214 724,526 562,571 351,172 Borrowing costs expense 1,034,148 631,841 657,450 452,889 420,433 Other expenses from ordinary activities 7,916,190 8,600,722 8,545,726 8,259,860 5,165,946

Total Expenditure 20,016,040 20,079,985 24,999,604 21,586,571 15,716,087

Net Profit before Tax (3,919,364) (3,445,046) (1,264,375) 2,406,816 1,874,402

Opening Retained Earnings 7,157,949 10,317,341 11,259,885 9,606,381 8,571,161 Net Profit/(Loss) (3,919,364) (3,445,046) (1,264,375) 2,406,816 1,874,402 Less: Income Tax 285,654 321,831 (753,312) (839,182)

Closing Retained Earnings 3,238,585 7,157,949 10,317,341 11,259,885 9,606,381

APPENDIX D

Historical Balance Sheets

30/06/08 30/06/07 30/06/06 30/06/05 30/06/04 Orford Refrigeration p~ Ltd $ $ $ $ $

Current Assets Cash at Bank 154,668 130,789 339,206 235,198 Cash on hand 5,100 2,000 Trade Debtors 4,975,093 3,350,944 3,825,011 6,911,310 5,225,080 Provision for doubtful debts (35,000) (35,000) (106,000) other Debtors 404,442 205,538 488,079 549,670 455,890 Loans to Directors 37,781 17,925 124,217 19,828 Inventories - Finished Goods 1,068,075 1,589,998 2,176,050 2,895,949 2,042,101 Inventories - Raw Materials 2,422,038 2,970,928 2,027,105 3,027,521 3,577,298 Inventories - Work in Progress 372,047 478,041 144,076 358,300 190,031 Prepayments 290,472 79,960 36,724 144,236 199,787 Prepaid Borrowing Expenses 1,647

Total Current Assets 9,540,048 8,815,002 8,846,051 14,.246,.020 11,927,032

Non-Current Assets Amounts receivable associated companies 4,217,673 3,532,089 2,957,381 4,384,556 3,694,148 Other Debtors 1,554,738 848,415 41,970 419,060 956,793 Shares in Orford Bros Pty Ltd 1,168 1,168 1,168 1,168 1,168 Plant & Equipment 8,966,800 9,259,230 8,770,390 8,157,492 3,769,290 Less: Accumulated Depreciation (2,734,458) (2,289,597) (1,304,832) (713,531) (282,077) Motor Vehicles 124,647 137,147 169,647 Less: Accumulated Depreciation (48,233) (32,653) (15,313) Goodwill 2,084,466 2,084,466 2,084,466 2,084,465 Less: Accumulated Amortisation (381,773) (277,548) (173,325) (69,101) Deferred Tax Assets 625,178 625,178 522,439 244,050 319,706

Total Non-Current Assets 12,631,099 13,679,176 12,871,848 14,508,430 10,628,726

Total Assets 22,171,147 22,494,178 21,717,899 28,754,450 22,555,758

Current Liabilities Trade Creditors 4,483,219 2,665,465 1,220,613 4,530,665 2,898,591 Other Creditors 451,745 719,809 531,607 273,498 300,527 Unsecured Loans 85,372 36,279 Bank Overdraft - Secured 94,985 3,015,427 692,692 1,451,045 1,742,009 Bank Bills - Secured 3,200,000 3,200,000 3,200,000 Bank Loan - Secured 3,503,289 Lease Liability 1,059,817 815,866 Equipment Loans 1,090,383 932,106 629,457 Employee Benefits 701,000 785,592 400,000 355,628 371,415 Other Provisions 69,602 Provision for Income Tax 120 (74,086) (616,311) 803,052 741,819

Total Current Liabilities 10,449,149 7,964,352 6,518,984 11,545,994 9,883,818

Non-Current Liabilities Amounts payable to related entities 12,134 70,865 5,251 Bank Bills - Secured 3,700,000 3,200,000 Lease Liability 4,213,404 3,416,877 Equipment Loans 3,679,625 4,767,882 1,775,310 Employee Benefits 265,000 294,263 546,163 422,730 467,873 Deferred Tax Liabilities 60,681 60,681 243,596 287,038 417,069

Total Non-Current Liabilities 8,239,085 6,971,821 4,481,518 5,548,515 2,665,503

Total Liabilities 18,688,234 14,936,173 11,000,502 17,094,509 12,549,321

Net Assets 3,482,913 7,558,005 10,717,397 11,659,941 10,006,437

Shareholders' Equity Share Capital 7,505 7,505 7,505 7,505 7,505 Asset Revaluation Reserve 392,551 392,551 392,551 392,551 392,551 Closing Retained Earnings 3,082,857 7,157,949 10,317,341 11,259,885 9,606,381

Total Shareholders' Equity 3,482,913 7,558,005 10,717,397 11,659,941 10,006,437