18 November 2016 TO THE CREDITOR AS ADDRESSED. Dear Sir / Madam

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1 Contact: Dilyana Panova Phone: (08) November 2016 TO THE CREDITOR AS ADDRESSED Dear Sir / Madam DEH Electrical Services Pty Ltd (Administrator Appointed) ACN: Formerly trading as DEH Electrical Services ( the Company ) I write to advise that I was appointed as Administrator of the above named Company on 27 October 2016 by the Director of the Company under section 436A of the Corporations Act 2001 ( the Act ). Please find enclosed the following for your information: Notice of Meeting (Form 529) Administrator s Report to Creditors Remuneration Report Information Sheet for Creditors Proof of Debt for Voting Purposes (Form 535) Proxy Form (Form 532) Please complete the Proof of Debt Form for Voting Purposes at the meeting and return this to me preferably by 5.00pm on the day before the meeting. If you need to complete the Proxy Form, I also request this preferably by 5.00pm on the day before the meeting. At the meeting, creditors may be asked to vote on the following: 1. The Company executing a Deed of Company Arrangement ( DOCA ); 2. The Company being voluntarily wound up; 3. The Administration ending; 4. The meeting being adjourned for a period not exceeding 45 business days. Administrator s Recommendation In brief, my report recommends that the Company be placed into liquidation. This is primarily because the Director has not proposed that the Company enter into a DOCA. As the Company is insolvent and unable to pay its debt, liquidation is the most appropriate recommendation in this circumstances. Furthermore, if a Liquidator is appointed, investigations pursuant to section 533 of the Act will be conducted into the past affairs and dealings of the Company, which may include potential insolvent trading offences committed by the Director and potential preferential payment recoveries. If you have any queries, please liaise with the above contact. Yours faithfully Kim Wallman Administrator of DEH Electrical Services Pty Ltd (Administrator Appointed) ACN: HLB Mann Judd (Insolvency WA) ABN Level 3, 35 Outram Street West Perth WA 6005 PO Box 622 West Perth WA 6872 Telephone Fax Website: Liability limited by a scheme approved under Professional Standards Legislation HLB Mann Judd (Insolvency WA) is a member of International. A world-wide network of accounting firms and business advisers.

2 FORM 529 Corporations Act 2001 ( the Act ) Regulation (6) Notice of a Meeting of Creditors of DEH Electrical Services Pty Ltd (Administrator Appointed) ACN: Formerly Trading as DEH Electrical Services ( the Company ) Notice is given that a Meeting of the Creditors of the Company will be held on Tuesday, 29 November 2016 at 10:00am at 35 Outram Street, West Perth, WA AGENDA 1. The purpose of the meeting is to receive the Administrator s report about the Company s business, property, affairs and financial circumstances and for creditors to resolve either: a) That the Company execute a Deed of Company Arrangement; or b) That the Administration should end; or c) That the Company should be wound up; or d) That the business of the meeting be adjourned for a period not to exceed forty five (45) business days. 2. For creditors to resolve to appoint the Administrator as Liquidator of the Company. 3. For creditors to resolve to approve the Administrator s remuneration pursuant to section 449E(1) of the Act. 4. For creditors to resolve to approve the future remuneration of the Administrator pursuant to section 449E(1) of the Act and or Liquidator pursuant to section 499(3) of the Act (if one is appointed). 5. If the Company is wound up, and if appropriate, appoint a Committee of Inspection. 6. If the Company is wound up, for creditors to resolve to approve the early destruction of the books and records of the Company pursuant to section 542(3)(c) of the Act, subject to approval from Australian Securities & Investments Commission. 7. Any other relevant business. Dated 18 November 2016 Kim Wallman Administrator of DEH Electrical Services Pty Ltd (Administrator Appointed) ACN:

3 DEH Electrical Services Pty Ltd (Administrator Appointed) ACN: Formerly trading as DEH Electrical Services ( the Company ) Administrator s Report to Creditors Pursuant to Section 439A of the Corporations Act 2001 Dated: 18 November 2016 Administrator Kim Wallman Appointment Date 27 October 2016 Second Meeting of Creditors Contact Tuesday, 29 November 2016 at 10:00am Dilyana Panova Telephone Number HLB Mann Judd (Insolvency WA) ABN Level 3, 35 Outram Street West Perth WA 6005 PO Box 622 West Perth WA 6872 Telephone Fax Website: Liability limited by a scheme approved under Professional Standards Legislation HLB Mann Judd (Insolvency WA) is a member of International. A world-wide network of accounting firms and business advisers.

4 DEH Electrical Services Pty Ltd (Administrator Appointed) ACN: Administrator s Section 439A Report to Creditors Page 2 HLB Mann Judd (Insolvency WA) Kim Wallman

5 DEH Electrical Services Pty Ltd (Administrator Appointed) ACN: Administrator s Section 439A Report to Creditors CONTENTS 1. Introduction Executive Summary First Meeting of Creditors Background Information Incorporation Officers, Shareholders, Registered Addresses and Security Interests Registered Security Interests Books and Records Financial Statements Historical Financial Performance Administrator s Prior Involvement Director s Report as to Affairs Administrator s comments on the Director s RATA Form 507: Explanations for Difficulties Outstanding or Previous Winding up Applications Related Entities Other Personal Roles Held Offences, Voidable Transactions and Insolvent Trading Offences Voidable Transactions Insolvent Trading Director s Personal Financial Position and Security Provided Proposal for a Deed of Company Arrangement Effect of Appointment on Employees Estimated Return from a Winding Up Administrator s Recommendation Whether it would be in the creditors interest for the Company to execute a Deed of Company Arrangement Whether it would be in creditors best interest for the Administration to end Whether it would be in creditors interests for the meeting to be adjourned for a period of up to 45 business days Whether it would be in the creditors interest for the Company to be wound up Remuneration Estimated Administrator s Costs Administrator s Past Fees Prospective Fees for the pperiod from 17 November 2016 to 29 November Prospective Fees from 30 November 2016 to the end of the Liquidation of the Company Meeting Details and Voting Instructions Page 3 HLB Mann Judd (Insolvency WA) Kim Wallman

6 DEH Electrical Services Pty Ltd (Administrator Appointed) ACN: Administrator s Section 439A Report to Creditors 1. Introduction I, Kimberley Stuart Wallman, was appointed as the Administrator of the Company under Part 5.3A of the Corporations Act 2001 ( the Act ) on 27 October 2016 by the Director of the Company. The purpose of the appointment of an Administrator is to allow for an independent Insolvency Practitioner to take control of and investigate the affairs of an insolvent Company. During that time, the claims of creditors are put on hold. At the end of that period, I am required to provide creditors with information and recommendations to assist creditors to decide upon the Company s future. The purpose of this report therefore is to provide creditors with sufficient information for them to make an informed decision about the future of the Company, including: Background information about the Company; The results of my investigations; The estimated returns to creditors; The options available to creditors and my opinion on each of these options including which option is in the creditors interests. In the time available to me, I have undertaken the following investigations to prepare this report and formulate my opinion: Review of the recent trading of the Company; Analysis of the financial position of the Company including any security held by financiers, and various other charge holders to obtain an estimate of potential funds available for unsecured creditors; Examination of the books and records of the Company; Review of the assets and liabilities position of the Company and the potential to recover funds from various parties; Land title searches; Vehicle and vessel searches; and Reviewed the possibility of insolvent trading, voidable transactions and other possible offences under the Act. At the meeting of creditors to be held on Tuesday, 29 November 2016, creditors will be asked to make a decision regarding the future direction of the Company by passing an ordinary resolution in respect of options available to them. In this report I have recommended to creditors that the Company be placed into liquidation and detailed why this option is, in my opinion, in the best interests of creditors. Page 4 HLB Mann Judd (Insolvency WA) Kim Wallman

7 DEH Electrical Services Pty Ltd (Administrator Appointed) ACN: Administrator s Section 439A Report to Creditors 2. Executive Summary The following Executive Summary of the key matters and recommendations for the attention of creditors: Subject Matter Preliminary Finding and Recommendations Report Reference Future direction of the Company Second meeting of creditors Maintenance of books and records Preferential payments Insolvent trading Insolvent trading claim recovery from the Director Deed of Company Arrangement ( DOCA ) proposal Dividend prospects As the Administrator of the Company, I have recommended that it is in the best interest of creditors to resolve to place the company in liquidation. A second meeting of creditors has been convened for Tuesday, 29 November 2016 at 10.00am at the offices of HLB Mann Judd (Insolvency WA), Level 3, 35 Outram Street, West Perth, Western Australia. An Appointment of Proxy form and Formal Proof of Debt form are enclosed at the rear of this report. I have formed the preliminary view that the Company maintained accurate books and records sufficiently enough to meet the requirements of section 286 of the Act. My investigations have identified potential preferential payments that a Liquidator may pursue, if one is to be appointed at the upcoming meeting of creditors. I have formed the view that the Director has traded whilst insolvent. Based on the Director s personal asset position, it is unlikely that a Liquidator would achieve a material recovery for the benefit of creditors of the Company. The Director has not proposed that the Company enter into a DOCA. It is premature to comment upon the likely dividend prospects of the Company given any dividend will largely depend on debtor realisations and the outcome of the recovery of the Directors loan owed to the Company. Section 9.4 Form 529 Notice of Meeting enclosed with covering letter to report Section 5.1 Section 5.2 Section 5.3 Section 5.4 Section 6 Section 8 3. First Meeting of Creditors A first meeting of creditors was held on Wednesday, 9 November At the meeting, there was no resolution to remove me as the Administrator from office and appoint someone else as the Administrator(s). Furthermore, there was no resolution for the appointment of a Committee of Creditors. In accordance with the Act, I now report to creditors regarding the Company s business, property, affairs and financial circumstances and the alternatives available to creditors in deciding the future of the Company. Page 5 HLB Mann Judd (Insolvency WA) Kim Wallman

8 DEH Electrical Services Pty Ltd (Administrator Appointed) ACN: Administrator s Section 439A Report to Creditors 4. Background Information 4.1. Incorporation A search of the Company file at the Australian Securities & Investments Commission ( ASIC ) revealed that the Company was incorporated on 23 August 2010 and commenced business around the same time. The Company has not traded during the period since my appointment on 27 October Officers, Shareholders, Registered Addresses and Security Interests Director Appointed Status Daryl Edward Hughes 23 August 2010 Current Secretary Appointed Status Daryl Edward Hughes 23 August 2010 Current Shareholder No. of Shares Status Daryl Edward Hughes 23 August 2010 Current Registered Office: Aspect Accountants & AMP; Advisors 37 Cleaver Street, West Perth WA 6005 Principal Place of Business: Unit 1/14 Distinction Road, Wangara WA Registered Security Interests A search of the Personal Property Securities Register ( PPSR ) revealed the following security interests registered against the Company: Secured Party Registration Number Type / Collateral Class PMSI Note ACCESS RENTALS AUSTRALIA PTY LTD Motor Vehicle/Other Goods Yes 1 ACCESS RENTALS AUSTRALIA PTY LTD Other Goods Yes 1 ACCESS RENTALS AUSTRALIA PTY LTD Other Goods Yes 1 ACCESS RENTALS AUSTRALIA PTY LTD Motor Vehicle Yes 1 METAL MANUFACTURES LIMITED Other Goods Yes 2 MIDDENDORP ELECTRIC CO PTY LTD Other Goods Yes 2 NEWSTONE NOMINEES PTY LTD Other Goods Yes 2 NATIONAL AUSTRALIA BANK LIMITED All Pap No Except No 3 TOYOTA FINANCE AUSTRALIA LTD Motor Vehicle No 4 Definitions: The term 'all present and after-acquired property' (abbreviated to 'ALLPAAP') means: personal property over which the grantor has an interest at the time the registration is made on the PPS Register, and personal property acquired after the registration is made on the PPS Register. PMSI (purchase money security interest) is a security interest in collateral created by a seller who secures the obligation to pay the purchase price, or a person who provides the value to purchase the personal property. A PMSI can also be the interest of a lessor or bailor under a PPS lease or the interest of a consignor who delivers property under a commercial consignment. Section 14 of the PPS Act provides the full definition of this term. Page 6 HLB Mann Judd (Insolvency WA) Kim Wallman

9 DEH Electrical Services Pty Ltd (Administrator Appointed) ACN: Administrator s Section 439A Report to Creditors Notes: 1. I have contacted these parties regarding their respective security interest registrations; however, I have not received any responses as at the date of writing this report. As far as I am aware, there was no hired goods or equipment in the possession of the Company at the date of my appointment. 2. I have contacted these parties regarding their respective security interest registrations; however, I have not received any responses as at the date of writing this report. 3. The National Australia Bank Limited is the Company s secured creditor with a security registration over all of the assets of the Company. 4. The security interest relates to a financed motor vehicle. I have engaged an independent valuer to value the vehicle and based on review of the finance contract have concluded that there is no equity to be realised for creditors. Accordingly, pursuant to section 443B(3) of the Act, I have given a formal notice to Toyota Finance Australia Ltd of my intention not to exercise property rights Books and Records Failure to maintain books and records in accordance with section 286 of the Act provides rebuttable presumption of insolvency. This presumption can be relied upon by a Liquidator in an application for compensation for insolvent trading and other actions for recoveries from related entities under Part 7.7B of the Act. Accordingly, I consider the information about the maintenance of the Company s books and records to be material to the creditors decision about the future direction of the Company. I advise creditors that I have taken possession of the Company s hard copy and electronic books and records. The Company engaged the services of an external bookkeeper to maintain a computerised cloud based MYOB accounting system. Furthermore, the Company utilised the services of an independent, external taxation accountant for the preparation of annual income tax returns and financial statements. This system enabled the Director to ascertain an accurate perspective of the Company s financial position as required by the Act. It appears that the books and records comply with the requirements of the Act Financial Statements The presence of absence of timely financial reporting in a company may provide an indication of the management capabilities of the incumbent Director. As noted above, my investigations have revealed that the Company engaged the services of an independent, external taxation accountant to prepare annual financial statements. I have obtained the most current financial statements prepared for the Company which were prepared for the 2014/15 financial year. I have extracted and included at the end of this report a copy of the balance sheet and profit and loss statement at Appendix A for your information. Page 7 HLB Mann Judd (Insolvency WA) Kim Wallman

10 DEH Electrical Services Pty Ltd (Administrator Appointed) ACN: Administrator s Section 439A Report to Creditors 4.6. Historical Financial Performance I have set out below a summary of the Company s financial performance across the 2013/14 and 2014/15 financial years. Profit & Loss Statement 2014/15 $ 2013/14 $ Income 1,159,206 1,171,146 LESS Expenses (1,032,541) (1,165,907) Profit from Ordinary Activities 126,665 5,239 LESS Income Tax (48,148) (3,611) Operating profit after income tax 78,517 1,628 The profit and loss statement indicates positive net income for both years ending 2014 and After tax profit increased from $1,628 in 2013/14 financial year to $78,517 in 2014/15 financial year. Main reason for the profit increase in 2015 is the decrease in contract payment expenditure for the year. Balance Sheet 2014/15 $ 2013/14 $ Current Assets 171, ,785 Non-Current Assets 88,902 56,816 Total Assets 260, ,601 Current Liabilities 274, ,990 Non-Current Liabilities (120,609) (60,279) Total Liabilities 154, ,711 Net Assets 106,407 57,890 At 30 June 2015, the Company s current assets were less than current liabilities, which means that the Company might have had liquidity issues. Total assets exceeded total liabilities, which suggest the possibility that the liquidity issues (if any) may have been temporary. As of the date of my appointment on 27 October 2016, not all creditors were entered into the accounting system of the Company thus precluding me from extracting an accurate Aged Payable report. Investigations concerning outstanding creditors are ongoing. A large part of the Company s current liabilities related to taxation debts Administrator s Prior Involvement No circumstances have arisen that would require amendment to my Declaration of Independence, Relevant Relationships and Indemnities dated 28 October Two members of my staff initially met with the Director on 15 October I met with the Director for the first time on 18 October The meetings were conducted for the following purposes: Obtaining sufficient information about the Company to advise the Company, its Director and the Director s advisors on the solvency of the Company; and To clarify and explain for the Company and its Director the various options available to the Company and the nature and consequences of an insolvency appointment. Prior to such meetings, and to the best of my knowledge, no prior relationship existed within the Company, its Director or any associated business or related companies within the meaning of Corporate Groups or any major creditors. Page 8 HLB Mann Judd (Insolvency WA) Kim Wallman

11 DEH Electrical Services Pty Ltd (Administrator Appointed) ACN: Administrator s Section 439A Report to Creditors I have had no prior and have no current personal relationships with the Director, members of senior management of the Company or any other person that may be seen to have influence with the Company. I have undertaken a proper assessment of the risks to my independence prior to accepting the appointment as Administrator of the Company in accordance with the law and applicable professional standards. This assessment identified no real or potential risks to my independence. I am not aware of any reasons that would prevent me from accepting the appointment Director s Report as to Affairs As at 27 October 2016, the assets and liabilities of the Company according to the Director s Report as to Affairs were estimated to be as follows: As per Director's Report as to Affairs Administrator's Estimated Realisable Values Notes $ $ ASSETS Cash at Bank 2,100 2,172 Stock CSI CSI 1 Trade Debtors 87,871 50,000 Directors Loan 302, ,567 2 Plant and Equipment CSI CSI 1 TOTAL ASSETS 392, ,768 LIABILITIES Priority Creditors Employee Entitlements 17,450 20,000 Superannuation 90, ,000 3 Secured Creditors NAB Line of Credit 100, ,000 4 Unsecured Creditors Trade Creditors 78,043 80,000 Australian Taxation Office 140, , Contingent Liabilities 10,327 10,327 TOTAL LIABILITIES 435, ,327 Notes: 1. I consider these figures to be commercially sensitive information ( CSI ). 2. Based on the latest externally prepared financial statements as at 30 June 2015, the Director is indebted to the Company for approximately $268K. The Director has identified that he and his partner owe approximately $302K in relation to a joint loan. Investigations into this matter are still ongoing. Page 9 HLB Mann Judd (Insolvency WA) Kim Wallman

12 DEH Electrical Services Pty Ltd (Administrator Appointed) ACN: Administrator s Section 439A Report to Creditors 3. I am currently in the process of assessing the exact overall unpaid superannuation liability. Preliminary assessments indicate it is greater than the Director s estimate. 4. As noted in section 4.3 above, the National Australia bank Limited has a general security interest over the assets of the Company. 5. The debt owed to the Australian Taxation Office ( ATO ) will likely increase once outstanding Business Activity Statements are lodged with the ATO Administrator s comments on the Director s RATA Form 507: It appears the Director s estimate of the financial position is not materially inaccurate Explanations for Difficulties As outlined in the Director s Questionnaire, the Director first realised the Company may have had to be placed into external administration in September 2016 upon the receipt of ATO payment plan default notice. At that time, the Company had no available funds to pay off the debt. As a result of this, the Director sought advice from his accountant and was directed to seek advice from an insolvency practitioner, being myself. The Director believes the causes of business failure were due to poor economic conditions and cash flow issues coupled with personal problems. In my opinion, the Director s assessment of the reasons for the demise of the Company are reasonable based on my preliminary investigations of the Company s affairs. Further investigations will be conducted presuming the Company is placed into liquidation Outstanding or Previous Winding up Applications My inquiries have revealed that at the date of my appointment, there were no petitions to wind up the Company Related Entities My investigation of the Company s accounting records and claims received to date indicate there are no related entities who are also creditors. For completeness, as noted in section 4.8, please note that the Director is indebted to the Company Other Personal Roles Held My search of the ASIC corporate database has revealed that the Director is also listed as either a Director, Secretary of Shareholder in the following private company/companies: Company: Hughes Property Holdings (WA) Pty Ltd Position: Director, Secretary and Shareholder Appointment date: 7 June 2011 Number of shares held: 1 I have not yet ascertained the asset position of Hughes Property Holdings (WA) Pty Ltd and therefore potential value Mr. Hughes may own as a shareholder of this entity. Investigations into this matter are ongoing. Page 10 HLB Mann Judd (Insolvency WA) Kim Wallman

13 DEH Electrical Services Pty Ltd (Administrator Appointed) ACN: Administrator s Section 439A Report to Creditors 5. Offences, Voidable Transactions and Insolvent Trading 5.1. Offences Duty to ensure books and records are maintained in accordance with the Corporations Act (Section 286) a company must keep written financial records that: a) correctly record and explain its transactions and financial position and performance, and b) would enable true and fair financial statements to be prepared and audited. As discussed in section 3.4 of this report, I have formed the view that the Company maintained books and records sufficient to enable the Director to assess the Company s financial position from time to time Voidable Transactions Insolvent transactions (Section 588FC) these are unfair preferences or uncommercial transactions entered into when the Company was insolvent or became insolvent as a result of entering into the transaction. My investigations into this matter are set out below: Unfair preferences (Section 588FA) these are transactions where a company transacts with a creditor resulting in that creditor receiving more than the creditor would receive if the transaction were set aside and the creditor claimed the same amount in a liquidation. Unfair preferences paid by the Company within six months of the relation-back day (the day of the Liquidator s appointment) are void against the Liquidator. This timeframe is extended to four years should a related entity be a party to the transaction (s588fe(4)). My investigations have identified payments that may be considered to be preferential in nature and therefore repayable to a Liquidator. I have identified several rounded payments made to the ATO associated with a payment plan that will form part of further investigations. Uncommercial transactions (Section 588FB) these are transactions entered into that a reasonable person would not have entered, having regard to the benefits and detriment to the Company and to the other parties involved in the transaction. Uncommercial transactions entered into by a company are voidable against the Liquidator if they were entered into within two years of the relation-back day. My preliminary investigations have not indicated the presence of any uncommercial transactions. Having said that, further investigations into this matter are required. Unfair loans to a company (Section 588FD) these are loans made to a Company where interest and other charges on the loan are extortionate. These transactions can be recovered regardless of when they were entered into as long as they were entered into on or before the winding up begun. My investigations have not revealed any unfair loans. Having said that, further investigations into this matter are required. Page 11 HLB Mann Judd (Insolvency WA) Kim Wallman

14 DEH Electrical Services Pty Ltd (Administrator Appointed) ACN: Administrator s Section 439A Report to Creditors Unreasonable director-related transactions (Section 588FDA) these are transactions entered into by a company and a director, close associate of a director, or person on behalf of a director, which a reasonable person would not have entered into. The transaction must be a payment by a company, the transfer of property by a company, or the incurrence of an obligation of a director s by a company. These transactions are voidable if they were entered into within four (4) years of the relation-back day. My investigations have not revealed any related party transactions. Having said that, further investigations into this matter are required. Transactions entered into for the purpose of defrauding Creditors (Section 588FE (5)) these are insolvent transactions entered into for the purpose of defeating, delaying or interfering with the rights of creditors and were entered into within a period of ten (10) years prior to the relation-back day. My investigations have not revealed any such transactions. Having said that, further investigations into this matter are required. Circulating Security Interest created within six months (Section 588FJ) where a circulating security interest is granted by the Company within six months of the relation-back day, the security interest is void against the Liquidator unless valuable consideration was given or the Company was solvent at the time of granting of the circulating security interest. My search of the PPSR has not revealed any circulating security interests registered against the Company within six months of the relation-back day Insolvent Trading Information about possible insolvent trading is relevant to creditors when making a decision about the future of a Company, as Directors of a Company may generally only be sued for insolvent trading if the company is in Liquidation. As with the voidable transaction analysis above, creditors have to assess the advantages to them of a Deed, which cannot include proceeds from insolvent trading actions, compared to the likely return in a Liquidation, which could include the proceeds of any successful insolvent trading action. For general information about insolvent trading, please refer to the attached information sheet. Directors duty to prevent insolvent trading (Section 588G) a Director of a Company has a duty to prevent a Company from incurring a debt when the Company is insolvent or there are reasonable grounds to suspect that the company is or would become insolvent. A Director would fail to fulfil that duty if the Director was aware of the grounds for suspecting the Company is or would become insolvent or a reasonable person in a like position would be aware of such grounds. The defences available to the Director are as follows; (i) (ii) (iii) (iv) The Director had reasonable grounds to expect, and did expect, that the Company was solvent and would remain so; or The Director had reasonable grounds to believe, and did believe, that a competent and reliable person was providing adequate information to the Director and based on that information the Director expected the Company to be solvent and to remain so; or The Director did not take part in the management of the company at the time due to illness or other good reason; or The Director took reasonable steps to prevent the Company from incurring the debt. I have formed the view that the Director may have traded whilst insolvent because at the time transactions were entered, there were reasonable grounds to believe the Company may not have been able to pay its debts as and when they fell due. Page 12 HLB Mann Judd (Insolvency WA) Kim Wallman

15 DEH Electrical Services Pty Ltd (Administrator Appointed) ACN: Administrator s Section 439A Report to Creditors The basis of my conclusion above is due to the following indicators of insolvency: Arrears with respect to statutory tax and superannuation obligations Evidence of payment plans with at least one creditor namely the ATO Deteriorating cash flows resulting from declining economic conditions leading to liquidity issues This matter will be addressed further if the Company is placed into liquidation at the upcoming meeting of creditors. Having said this, my initial view is the Director lacks valid defences to insolvent trading actions. Further investigations into this matter are required Director s Personal Financial Position and Security Provided My land title searches conducted to date indicate the Director is a joint owner of a residential property in Carramar in Western Australia. I am aware that National Australia Bank is the first ranking mortgagee with security over the property. Further investigations will be conducted into the equity position of the property. As noted in section 4.13 above, the Director holds one (1) share in Hughes Property Holdings (WA) Pty Ltd. However, I have not yet ascertained the value of the Director s shareholding in this company. I am not aware that the Director possesses any material personal assets. I am aware that the Director has provided some creditors with a personal guarantee for goods supplied. I advise that these personal guarantees cannot be enforced until the Company is no longer in Administration in accordance with section 440J of the Act. 6. Proposal for a Deed of Company Arrangement As at the date of writing this report, the Director has not proposed the Company enter a Deed of Company Arrangement. I therefore do not have any further information to present to creditors in this regard. 7. Effect of Appointment on Employees Under a Deed of Company Arrangement Scenario: As no DOCA has been proposed by Director, employees need not consider the effects on them under this potential scenario. Under a Liquidation Scenario: As noted above, the Director has not proposed a DOCA, therefore a liquidation of the Company is likely at some point in the near future. Pursuant to section 556 of the Act, former employees are afforded a priority over the claims of other creditors. That being said, until asset recovery actions are completed, I am uncertain if there will be any return to former employees. In the event that there are insufficient funds available in the liquidation to permit a return to former employees, former employees may be eligible for assistance under the Fair Entitlement Guarantee ( FEG ) administered by the Department of Employment. I will communicate with the former employees of the Company further regarding FEG and their outstanding entitlements, if the Company is placed into liquidation. Page 13 HLB Mann Judd (Insolvency WA) Kim Wallman

16 DEH Electrical Services Pty Ltd (Administrator Appointed) ACN: Administrator s Section 439A Report to Creditors 8. Estimated Return from a Winding Up The Act specifies that if there are funds left over after the payment of the costs of the Administration/Liquidation, the Administrator/Liquidator will pay these to creditors as a dividend. Generally, the order in which funds are distributed are as follows: 1. costs and expenses of the Administration/Liquidation, including Administrator s/liquidator s approved fees; 2. outstanding employee wages and superannuation (equal ranking); 3. outstanding employee leave of absence payments including annual leave, sick leave (if applicable) and long service leave; 4. employee retrenchment pay (redundancy payments or pay in lieu of notice as the case may be); and 5. ordinary unsecured creditors. Each category is paid in full before the next category is paid. If there are insufficient funds to pay a category in full, the available funds are paid on a pro-rata basis. The next category or categories will not receive a dividend. Accordingly, given the asset position of the Company and the costs involved with the Administration and likely Liquidation of the Company, I anticipate that priority creditors may receive part payment of outstanding entitlements. Given the National Australia Bank has a general security interest over the assets of the Company, it is unlikely that there will be sufficient funds available to permit a dividend to unsecured creditors. If this position changes, I will advise creditors via future circulars. To the extent there are any outstanding priority employee entitlements (not including superannuation) these may be satisfied through the assistance of the Department of Employment. The Liquidator (if appointed) will communicate with employees as required. 9. Administrator s Recommendation The following options are available to creditors to decide pursuant to section 439B and 439C of the Act: The Company execute a DOCA (no DOCA has been proposed in this instance); or The administration should end; or The business of the meeting be adjourned for a period not exceeding 45 business days; or The Company be wound up. I am obliged to give my opinion on the matters noted below. My recommendation considered the following matters: The assets and liabilities position of the Company; The fact that the Company is no longer trading; and The fact that the Director has not proposed a DOCA Whether it would be in the creditors interest for the Company to execute a Deed of Company Arrangement Presently the Director has not proposed that the Company enter a Deed of Company Arrangement. I do not have any further information to present in this regard and therefore I do not recommend this option for the future direction of the Company. Page 14 HLB Mann Judd (Insolvency WA) Kim Wallman

17 DEH Electrical Services Pty Ltd (Administrator Appointed) ACN: Administrator s Section 439A Report to Creditors 9.2. Whether it would be in creditors best interest for the Administration to end It is my opinion that it is not in creditors best interest for the Administration to end. Should creditors resolve that the Administration be terminated, the Company will be placed into a similar position to that existing prior to the appointment of the Administrator. Control of the Company will revert to the Director and creditors will have the option to petition to wind up the Company at their own expense. Given the above, I do not recommend this option Whether it would be in creditors interests for the meeting to be adjourned for a period of up to 45 business days At the time of writing this report, I do not believe it would be in creditor s best interests to adjourn the meeting. This would only achieve a positive outcome if the Director believed there was the probability of obtaining funds by some other means. At the time of writing this report, this option did not seem probable. I therefore do not recommend this option Whether it would be in the creditors interest for the Company to be wound up In my opinion, a liquidation of the Company would be in the best interests of creditors, as a Liquidator would be required to investigate the past trading and affairs of the Company and the Director. 10. Remuneration Estimated Administrator s Costs HLB Mann Judd (Insolvency WA) is an independent, Professional Services firm specialising in Corporate Recovery. Kim Wallman has been involved full time in the insolvency industry for the past 30 years Administrator s Past Fees The outstanding fees for Administrator, his partners and staff for the period 27 October 2016 to 16 November 2016 are $21, (exclusive of GST and expenses) Prospective Fees for the pperiod from 17 November 2016 to 29 November 2016 The anticipated fees that may be incurred for tasks to be undertaken by the Administrator, his partners and staff for the period 17 November 2016 to 29 November 2016 be capped up to a limit of $10,244 (excluding GST and expenses) Prospective Fees from 30 November 2016 to the end of the Liquidation of the Company The fees that may be incurred for anticipated tasks to be undertaken by the Liquidator, his partners and staff for the period 30 November 2016 until the finalisation of the Liquidation be capped up to a limit of $34,754 (excluding GST and expenses). The total costs of the Administration / Liquidation of the Company will vary depending on the work required to be performed by the Administrator / Liquidator, his partners and staff in respect of issues arising from the Administration of the Company. In respect to the Administrator s / Liquidator s remuneration, I advise that the firm charges professional fees on the basis of time spent by the Principal Appointee and staff at rates reflecting their level of experience. Page 15 HLB Mann Judd (Insolvency WA) Kim Wallman

18 DEH Electrical Services Pty Ltd (Administrator Appointed) ACN: Administrator s Section 439A Report to Creditors In accordance with the Australian Restructuring Insolvency & Turnaround Association ( ARITA ) Code of Professional Conduct, additional details concerning the approval of the Administrator s Remuneration are specified in the enclosed Remuneration Report. 11. Meeting Details and Voting Instructions The meeting date is Tuesday, 29 November 2016 at 10:00am. A copy of the Notice of Meeting, Appointment of Proxy form and Statement of Claim form are attached to this Report. Yours faithfully, Kim Wallman Administrator DEH Electrical Services Pty Ltd (Administrator Appointed) ACN Page 16 HLB Mann Judd (Insolvency WA) Kim Wallman

19 DEH Electrical Services Pty Ltd ABN Detailed Profit and Loss Statement For the year ended 30 June 2015 Appendix A $ $ Income Gross Receipts 1,127,596 1,132,719 Interest - Hughes Property Trust 1,906 1,882 Interest - D & J Hughes 9,594 2,084 Interest received - ATO Rents received 8,989 17,126 Subsidies received 10,879 17,090 Total income 1,159,206 1,171,146 Expenses Accountancy 3,830 5,057 Amortisation Expense Assets under $1,000/$20, Bank Fees And Charges 1,188 1,525 Bookkeeping 2,180 Borrowing Expenses 240 Cleaning/rubbish removal 583 Computer expenses 1, Contract payments 132, ,589 Depreciation - plant Electricity 2,920 2,652 Fees & charges 2,499 5,172 Filing Fees Fines 1, Hire/rent of Plant & Equipment 8,110 18,023 Insurance 22,375 16,594 Interest - Australia 11,120 5,713 Interest - ATO 7,388 3,446 Internet Long service leave 3,059 2,332 Materials & supplies 352, ,571 M/V commercial - Depreciation 12,255 9,594 M/V commercial - Fuel & oil 12,967 16,265 These financial statements are unaudited. They must be read in conjunction with the attached Accountant's Compilation Report and Notes which form part of these financial statements.

20 DEH Electrical Services Pty Ltd ABN Detailed Profit and Loss Statement For the year ended 30 June 2015 Appendix A M/V commercial - Interest 1, $ $ M/V commercial - Reg/Insurance 6,387 6,944 M/V commercial - Repairs 4,318 6,759 Postage 4 Printing & stationery 1,265 1,541 Protective clothing 1,911 1,097 Parking 151 Rates & land taxes 2,201 5,700 Rent on land & buildings 30,000 30,000 Staff training 141 Superannuation 28,209 27,321 Telephone 3,179 2,684 Wages 371, ,459 Total expenses 1,032,541 1,165,907 Profit from Ordinary Activities before income tax 126,665 5,239 These financial statements are unaudited. They must be read in conjunction with the attached Accountant's Compilation Report and Notes which form part of these financial statements.

21 DEH Electrical Services Pty Ltd ABN Profit and Loss Statement For the year ended 30 June 2015 Appendix A $ $ Operating profit before income tax 126,665 5,239 Income tax attributable to operating profit (loss) (48,148) (3,611) Operating profit after income tax 78,517 1,628 Retained profits at the beginning of the financial year 57,790 78,162 Total available for appropriation 136,307 79,790 Dividends provided for or paid (30,000) (22,000) (30,000) (22,000) Retained profits at the end of the financial year 106,307 57,790 These financial statements are unaudited. They must be read in conjunction with the attached Accountant's Compilation Report and Notes which form part of these financial statements.

22 DEH Electrical Services Pty Ltd ABN Detailed Balance Sheet as at 30 June 2015 Appendix A Note $ $ Current Assets Cash Assets NAB Cheque A/c 57,246 25,808 Cash on hand ,346 25,908 Receivables Trade debtors 97, ,876 Less: Unexp Interest Charges , ,876 Other Prepayments 16,373 16,373 Total Current Assets 171, ,785 These financial statements are unaudited. They must be read in conjunction with the attached Accountant's Compilation Report and Notes which form part of these financial statements.

23 DEH Electrical Services Pty Ltd ABN Detailed Balance Sheet as at 30 June 2015 Appendix A Note $ $ Non-Current Assets Receivables 2013 Div 7A - Hughes Property Trust 5, Div 7A - Hughes Property Trust 17,427 26, Div 7A - Hughes Property Trust 17,046 34,473 32,114 Property, Plant and Equipment Plant & equipment - at cost 4,192 4,192 Less: Accumulated depreciation (3,073) (2,593) Motor Vehicles 79,950 38,386 Less: Accumulated depreciation (27,677) (15,422) 53,392 24,562 Other Preliminary expenses 700 Less: Accumulated amortisation (560) Borrowing expenses 1,278 Less: Accumulated amortisation (240) 1, Total Non-Current Assets 88,902 56,816 Total Assets 260, ,601 These financial statements are unaudited. They must be read in conjunction with the attached Accountant's Compilation Report and Notes which form part of these financial statements.

24 DEH Electrical Services Pty Ltd ABN Detailed Balance Sheet as at 30 June 2015 Appendix A Note $ $ Current Liabilities Payables Unsecured: Trade creditors 24,136 90,504 24,136 90,504 Financial Liabilities Unsecured: NAB Qantas Bus Card 9,040 9,761 Centrepoint Premium Funding 16,757 25,798 9,761 Current Tax Liabilities GST payable control account 65,081 35,229 GST payable adjustment control account (404) Input tax credit control account (40,799) (24,762) Input tax credit adjustment control a/c 1,993 ATO - Integrated Client Account 79,187 22,944 Taxation 52,213 33,482 Amounts withheld from salary and wages 17,645 22, ,326 91,150 Provisions Superannuation payable 51,704 19,576 51,704 19,576 Total Current Liabilities 274, ,990 These financial statements are unaudited. They must be read in conjunction with the attached Accountant's Compilation Report and Notes which form part of these financial statements.

25 DEH Electrical Services Pty Ltd ABN Detailed Balance Sheet as at 30 June 2015 Appendix A Note $ $ Non-Current Liabilities Financial Liabilities Unsecured: Loan - D & J Hughes NAB , , Div 7A Loan - D & J Hughes (7,919) (10,301) 2014 Div 7A Loan - D & J Hughes (133,001) (151,025) 2015 Div 7A Loan - D & J Hughes (127,203) Loan - G Constructions 1,000 Loan - J Budrovich 3,850 Secured: HP - Toyota Hilux 46,455 Less: Unexp interest charges (4,815) (120,609) (60,279) Total Non-Current Liabilities (120,609) (60,279) Total Liabilities 154, ,711 Net Assets 106,407 57,890 Equity Issued Capital Issued & paid up capital Retained profits / (accumulated losses) 106,307 57,790 Total Equity 106,407 57,890 These financial statements are unaudited. They must be read in conjunction with the attached Accountant's Compilation Report and Notes which form part of these financial statements.

26 DEH Electrical Services Pty Ltd (Administrator Appointed) ACN: ( the Company ) Remuneration Report Dated 18 November 2016 Administrator Kim Wallman Appointment Date 27 October 2016 Contact Dilyana Panova Telephone Number HLB Mann Judd (Insolvency WA) ABN Level 3, 35 Outram Street West Perth WA 6005 PO Box 622 West Perth WA 6872 Telephone Fax Website: Liability limited by a scheme approved under Professional Standards Legislation HLB Mann Judd (Insolvency WA) is a member of International. A world-wide network of accounting firms and business advisers.

27 DEH Electrical Services Pty Ltd (Administrator Appointed) ACN: Remuneration Report 1. Introduction In compliance with the Australian Restructuring Insolvency & Turnaround Association ( ARITA ) Code of Professional Practice and the requirements of the Corporations Act 2001, I set out below my remuneration report for the period 27 October 2016 to 16 November 2016, from 17 November 2016 to 29 November 2016 and from 30 November 2016 to finalisation. 2. Declaration I, Kim Wallman, have undertaken a proper assessment of this remuneration claim for my appointment as Liquidator of the Company in accordance with the law and applicable professional standards, I am satisfied that the remuneration claimed is in respect of necessary work properly performed in the conduct of the appointment. 3. Summary of Remuneration Approvals Sought To date no remuneration has been approved and paid in this appointment. This remuneration report details approval sought for the following remuneration: Remuneration Amount (Exc GST) Current remuneration approvals sought: Resolution from 27 October 2016 to 16 November 2016 $21, Resolution from 17 November 2016 to 29 November 2016 $10, Resolution from 30 November 2016 to finalisation $34, Total remuneration sought $66, *Approval for the future remuneration sought is based on an estimate of the work necessary to the completion of the administration. Should additional work be necessary beyond what is contemplated, further approval be sought from creditors 4. Description of Work The tasks which external administrators undertake can be broadly divided into seven categories. These are: Assets Creditors Employees Trade on Investigation Dividend Administration Information on the seven categories (if work done is applicable) is summarised in Annexure A to enable creditors to understand the type and purpose of work being undertaken. Page 2 HLB Mann Judd (Insolvency WA) Kim Wallman

28 DEH Electrical Services Pty Ltd (Administrator Appointed) ACN: Remuneration Report 5. Calculation of Remuneration (Time Basis) I advise that HLB Mann Judd (Insolvency WA) utilises the time basis method for charging remuneration. Time based remuneration is appropriate for this administration because: It ensures creditors are only charged for work performed in the conduct of the administration; I am required to perform tasks unrelated to asset realisations; therefore fees solely based on asset realisations would be impractical; I am unable to provide a reliable estimate of the total remuneration required to complete all tasks in the administration. Information regarding the time charged by myself and my partners and staff working on this appointment is summarised in Annexure A to enable creditors to understand the time undertaken on various tasks in the appointment as described above. The schedule of hourly rates for the 2016/17 financial year are set out below: I advise that the above schedule of hourly rates is increased annually on 1 July each year in accordance with the preceding March quarter Consumer Price Index (all groups) result. Classification Details of classification Charge out rate / hour (excluding GST) Appointee 30+ years experience, registered liquidator and $490 registered trustee. Significant experience on a range of administrations and a very deep understanding of insolvency legislation and issues. Senior consultant Generally, 20+ years experience. University degree, $447 - $485 member of the CAANZ / CPA and ARITA, deep understanding of insolvency legislation and issues. Consultant Brings specific, high-level experience to insolvency or $363 other appointments. Senior Manager Generally, 10+ years experience with at least 2 years $342 as manager, very strong understanding of insolvency legislation and issues. Manager Generally, 5+ years experience. University degree, $294 member of the CAANZ / CPA or completing the CAANZ / CPA program, member of ARITA or completing the ARITA IEP program, or has relevant experience. Strong understanding of insolvency legislation and issues. Supervisor Generally, 4-5 years experience. University degree, $263 member of the CAANZ / CPA or completing the CAANZ / CPA program, member of ARITA or completing the ARITA IEP program, or has relevant experience. Strong understanding of insolvency legislation and issues. Senior Generally, 2-4 years experience. University degree, $230 member of the CAANZ / CPA or completing the CAANZ / CPA program. Sound knowledge of relevant insolvency legislation and issues. Intermediate Generally, 1-3 years experience, has completed or $178 substantially completed a university degree or has relevant experience, takes direction from senior staff in completing administrative tasks. Secretary Appropriate skills for tasks required. $163 Office Assistant Appropriate skills for tasks required. $102 - $135 Page 3 HLB Mann Judd (Insolvency WA) Kim Wallman

29 DEH Electrical Services Pty Ltd (Administrator Appointed) ACN: Remuneration Report 6. Remuneration Recoverable from External Sources I have not received any payments from external sources for the conduct of this appointment. 7. Disbursements Disbursements are divided into three types: A B1 disbursements are all externally provided professional services and are recovered at cost. An example of an A disbursement is legal fees. disbursements are externally provided non-professional costs such as travel, accommodation and search fees. They are recovered at cost. B2 disbursements are internally provided non-professional costs such as photocopying and document storage. B2 disbursements are charges 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. Full details of disbursements on this appointment are provided in the attached remuneration summaries (pages 2, 4 and 6 of Annexure A). I have undertaken a proper assessment of disbursements claimed for the Company, in accordance with the law and applicable professional standards, I am satisfied that the disbursements claimed are necessary and proper. Creditor approval for the payment of disbursements is not required, however I must account to creditors. Creditors have the right to question the incurring of the disbursements and can challenge the disbursements in court. 8. Report on Progress of Administration I invite creditors to review my report to creditors dated 18 November 2016 for further and better particulars regarding the progress of the appointment to date. 9. Future Remuneration When creditors meet on Tuesday, 29 November 2016, I will ask for approval to be paid remuneration for services rendered in the administration of the Company. A summary of the major tasks and costs relating to the professional services for the period 27 October 2016 to 16 November 2016 is set out in page 1-2 of Annexure A, from 17 November 2016 to 29 November 2016 is set out in page 3-4 of Annexure A, and the expected tasks and costs relating to the professional services for the period beginning 30 November 2016 to finalisation is set out in page 5-6 of Annexure A. I will report to creditors should matters change which prevent me from being able to complete the administration of the Company for this capped amount of remuneration. Page 4 HLB Mann Judd (Insolvency WA) Kim Wallman

30 DEH Electrical Services Pty Ltd (Administrator Appointed) ACN: Remuneration Report 10. Summary of Receipts and Payments A summary of the receipts and payments for the administration made up to 16 November 2016 is attached as Annexure B. 11. Previous Remuneration Claims Please refer to section 3 above for information regarding my previous remuneration approvals in this appointment. 12. Statement of Remuneration Claim At the forthcoming meeting of creditors, creditors will be asked to pass the following resolutions: Administrator s Past Fees 27 October 2016 to 16 November 2016 (Annexure A pages 1-2) That the remuneration of the Administrator for the period 27 October 2016 to 16 November 2016, calculated at hourly rates detailed in the Remuneration Report to creditors of 18 November 2016, is determined in the sum of $21,465.80, which excludes GST and expenses, and is approved for immediate payment. Prospective Fees from 17 November 2016 to 29 November 2016 (Annexure A pages 3-4) That the remuneration of the Administrator for the period 17 November 2016 to 29 November 2016, calculated at hourly rates detailed in the Remuneration Report to creditors of 18 November 2016, is determined in the sum of $10,244.00, which excludes GST and expenses, and is approved for immediate payment. Prospective Fees from 30 November 2016 to finalisation (Annexure A pages 5-6) That the future remuneration of the Liquidator for the period 30 November 2016 to finalisation is determined at a sum equal to the cost of time spent by the Liquidator and his staff, calculated at the hourly rates as detailed in the Remuneration Report to creditors of 18 November 2016 that will be increased in accordance with the annual Consumer Price Index (all groups) at 31 March each year, to be adjusted at 1 July each year, up to a capped amount of $34,754.00, exclusive of GST and expenses, above which further approval may be required, and that the Liquidator can draw the remuneration on a monthly basis or as required. Page 5 HLB Mann Judd (Insolvency WA) Kim Wallman

31 DEH Electrical Services Pty Ltd (Administrator Appointed) ACN: Remuneration Report 13. Queries / Information Sheets The above information is provided to assist creditors consider the appropriateness of the remuneration claim that is being made. Creditors should feel free to contact my office to seek further information concerning the remuneration claim if they so need. ARITA has produced a document entitled Creditor Information Sheet: Approving remuneration in external administrations. This document can be downloaded from the ARITA website or alternatively a copy can be obtained by contacting this office. Yours faithfully, Kimberley Wallman Administrator of DEH Electrical Services Pty Ltd (Administrator Appointed) ACN: Page 6 HLB Mann Judd (Insolvency WA) Kim Wallman

32 DEH Electrical Services Pty Ltd (Administrator Appointed) A.C.N Appendix A Voluntary Administration Page 1 of 6 Kimberley Wallman (Administrator) HLB Mann Judd (Insolvency WA) TASKS COMPLETED IN THE PERIOD: FROM - 27 October 2016 TO - 16 November 2016 FOR REMUNERATION APPROVAL Task Area General Description Includes [Est. cost] Assets Bank Advise company bank manger of appointment at request to freeze all bank accounts. $3, Plant and Equipment Travel to place of business to inspect assets and premises. Arrange independent auctioneers to value plant and equipment as well as correspondence in regards to valuation report. Engage in negotiations for sale of motor vehicles and liaise with bank representatives regarding offers received. Finalise sale of vehicles and raise tax invoice, attend to transfer paperwork and forms. Arrange disclaimer for financed motor vehicle. Insurance Discuss and implement different cover options and placing plant and equipment insurance and completion of appointment documents. PPSR Review PPSR registrations and send secured creditor letters. Discuss and review secured creditor's assets and terms and conditions of contracts. Searches Conduct intellectual property searches. Conduct Landgate land title searches. Conduct vehicle and vessel search. Initiated review of motor vehicle finance documentation and contracts. Landlord Review of tenancy circumstances, conditions and assessment of prospective dealings with the landlord. Creditors General Create and update creditors dividend database and claims and proof register. $6, Adjudicate on each received proof of debt and assess against company's records and supporting documentation. Attend to creditor enquires regarding the appointment and their claim against the company. Reporting and meeting Prepare first letter to creditors with notice of appointment and first creditor meeting. Prepare minutes for the first creditor meeting, review proof of debt and proxy forms. Discuss quorum and the first creditor meeting details. Prepare for and attend first creditors meeting. Keep minutes at the meeting. Lodged first creditors meeting minutes online with ASIC. Prepare section 439A report, results of investigations, notice of meeting and Administrator's opinion on options available to the company. Secured creditor Prepare and send s450a letter to secured creditors. Regular contact with secured creditor regarding asset security and realisation options. Employees General Attend to queries from ex-employees regarding entitlements and progress of appointment. $3, Employee Entitlements Assessing outstanding employee entitlements to determine priority creditors. Superannuation Review, calculation and reconciliation of superannuation entitlements. Fair Entitlements Guarante Advise ex-employees of availability of FEG to assist with unpaid entitlements (if applicable). Investigations Director's obligations Prepare director's letters, questionnaire and reports to affairs documentation. Discuss completion with the director. $3, Meeting with the director regarding the company overall, assets, sale of business prior to administrator's appointment and company records. Books and records Receive and review company accounting software database and hard books and records. Review company Books and records, produce reports for company to aid investigations. Request company records, tax returns and financial from the company accountant. Archive and record company records. Investigations Review bank records and record potential preference and related party transactions. Review director's completed questionnaire and report as to affairs. Review contract for sale of business that occurred prior to the administrator's appointment. Searches Conduct personal name search on the director. Administration General Filing, file ing system, photocopying, scanning documents, manage incoming mail. $4, Prepare and send conflict check to all of HLB Mann Judd. Manage disbursements and data entry of payments and receipts. Maintain checklist for the progress of the appointment. Conduct Veda credit history search. Searches Review bank account and complete bank reconciliation Banking Open administration bank account. Request further sweep of funds from company account. Statutory Prepare bank deposit slips, copy all cheques, count cash and deposit. Prepare and lodge appointment documents with ASIC online. Prepare and send Australian Taxation Office notification of appointment form. TOTAL $21,465.80

33 At cost $0.18 per envelope $1.00 per fax $0.50 per page At cost At cost At cost Appendix A Page 2 of 6 DEH Electrical Services Pty Ltd (Administrator Appointed) A.C.N Voluntary Administration Kimberley Wallman (Administrator) HLB Mann Judd (Insolvency WA) SUMMARY OF TASKS COMPLETED FROM 27 OCTOBER 2016 TO 16 NOVEMBER 2016 FOR REMUNERATION APPROVAL Employee Position $/hour Total Hours Total Tasks (ex GST) ($) Assets Creditors Employees Investigation Administration hrs $ hrs $ hrs $ hrs $ Wallman, Kim Administrator $ 4, $ $ 1, $ $ $ 2, Quin, Greg Senior Manager $ 6, $ 1, $ 1, $ $ 1, $ Panova, Dilyana Intermediate $ 4, $ $ 3, $ $ $ Morgan, Samantha Intermediate $ 6, $ $ $ 3, $ $ McCann, Montana Secretary $ $ $ $ $ $ - Greenaway, Jasmin Secretary $ $ $ $ $ $ TOTAL GST TOTAL (including GST) Average hourly rate 92.9 $21, $ 3, $ 6, $ 3, $ 3, $ 4, $ 2, $23, $ $ $ $ $ $ Expenses (Disbursements) Basis of Disbursement Claim Employee Travel Reibursements $35.45 Advertising Printing, 453 Postage, 29 $ $52.30 Envelopes (C4 size and above) Faxes Advertising, 1 $ Searches, 4 $ Expenses incurred 27 October 2016 to 16 November 2016 GST on expenses TOTAL EXPENSES (including GST) $ $46.73 $ Photocopying & Printing (internally sourced) Postage Printing (externally sourced) Storage & Destruction of Books and Records Scale applicable for financial year ending 30 June 2017

34 DEH Electrical Services Pty Ltd (Administrator Appointed) A.C.N Appendix A Voluntary Administration Page 3 of 6 Kimberley Wallman (Administrator) HLB Mann Judd (Insolvency WA) TASKS COMPLETED IN THE PERIOD: FROM - 17 November 2016 TO - 29 November 2016 FOR REMUNERATION APPROVAL Task Area General Description Includes [Est. cost] Assets Debtors Commenced review of debtors and progress claims. $1, Plant and Equipment Process paperwork after assets realisations. Continue to negotiate sale of motor vehicles. Loan accounts Commence recovery of loans owed to the company. Creditors Reporting to creditors Prepare remuneration report and supporting documents. $3, Finalise and issue section 439A report and results of preliminary investigations. Meeting Notices Advertise meeting as required on the ASIC Published Notices Website Second Meeting Organise quorum for the second meeting and prepare meeting minutes. Creditor enquiries Receive and follow up creditor via telephone. Maintaining creditor enquiry. Review and prepare correspondence to creditors and their representatives via facsimile, and post. Record creditor claims into the claims and proof register and creditors dividend database. Employees General Attend to all employee enquiries and send any required information. $ Investigations Investigations checklists Continue with investigations into past affairs and dealings of the company to advise creditors in report and at the second meeting of creditors. $2, Meeting with the director regarding report as to affairs and questionnaire, review in depth. Review Company MYOB database and financials in relation to analysis for report to creditors. Investigate antecedent transaction and complete paperwork in the event of preferential payments. Searches Conduct personal name search on the director. Administration General Filing, photocopying, scanning documents, manage incoming mail. $2, Manage disbursements and enter into work in progress database. General meetings to discuss and plan tasks required for the appointment. Deposit funds received at bank. Reconcile receipts and payments. Update the website with the all appointment letters, reports and minutes. Maintain checklist for the progress of the appointment. TOTAL $10,244.00

35 SUMMARY OF ANTICIAPTED TASKS TO BE COMPLETED FROM 17 NOVEMBER 2016 TO 29 NOVEMBER 2016 FOR REMUNERATION APPROVAL At cost $1.00 per fax $0.50 per page At cost $0.18 per envelope Appendix A Page 4 of 6 DEH Electrical Services Pty Ltd (Administrator Appointed) A.C.N Voluntary Administration Kimberley Wallman (Administrator) HLB Mann Judd (Insolvency WA) Employee Position $/hour Total Hours Total Tasks (ex GST) ($) Assets Creditors Employees Investigation Administration hrs $ hrs $ hrs $ hrs $ Wallman, Kim Administrator $ 3, $ $ 1, $ $ $ Quin, Greg Senior Manager $ 3, $ 1, $ 1, $ $ $ Panova, Dilyana Intermediate $ 1, $ $ $ $ 1, $ Morgan, Samantha Intermediate $ 1, $ $ $ $ $ Greenaway, Jasmin Secretary $ $ $ $ - $ $ TOTAL GST TOTAL (including GST) Average hourly rate 36.0 $ 10, $1, $3, $ $2, $2, $ 1, $ 11, $ $ $ $ $ $ Expenses (Disbursements) Fax, 2 Photocopy, 650 Postage, 29 Advertising, 1 Expenses anticipated from 17 November 2016 to 29 November 2016 GST on expenses TOTAL EXPENSES (including GST) $2.00 $ $50.00 $ $ $53.70 $ Basis of Disbursement Claim Advertising At cost Destruction of Books and Records At cost Couriers At cost Printing (externally sourced) Faxes Photocopying & Printing (internally sourced) Postage (1 unit includes stamp and envelope) Envelopes (C4 size and above) Scale applicable for financial year ending 30 June 2017

36 DEH Electrical Services Pty Ltd (Administrator Appointed) A.C.N Appendix A Voluntary Administration Page 5 of 6 Kimberley Wallman (Liquidator) HLB Mann Judd (Insolvency WA) TASKS COMPLETED IN THE PERIOD: FROM - 30 November 2016 TO - Finalisation FOR REMUNERATION APPROVAL Task Area General Description Includes [Est. cost] Assets Trade Debtors Collection of accounts receivable and ascertaining accuracy of progress claims, set off claims and settlement prospects. Finalise recoveries and reconcile to initial estimates. $7, Plant & Equipment Finalise sales of assets - plant and stock. Director's Loan Account Finalise recovery of Director's debit loan account and negotiate settlement. Creditors Reporting and meetings Send letter to creditors regarding the outcome of the second meeting of creditors and advertise this outcome at ASIC Published Notices Website. Lodge meeting minutes at ASIC. $9, Prepare and circulate supplementary report to creditors, if required regarding the outcome of the liquidator's investigations. Communications with creditors Finalisation Attend to queries from creditors regarding the liquidation process generally and the outcome of the second meeting of creditors. Update creditors dividend database and claims and proof register. Prepare and circulate final report to creditors including notice of final meeting. Prepare receipts and payment for the final report. Fax Australian Taxation Office a copy of the final report. Prepare for and attend final meeting (if applicable) and lodge minutes at ASIC. Employees General Attend to queries from employees / superannuation entitlements $2, Employee Entitlements Review and adjudicate on employee claims / superannuation Preparation of information of superannuation payments Investigations Investigations Continue with investigations into the affairs of the company and prepare necessary statutory lodgements and reports. $5, Investigations into possible breaches of directors' duties. Checklist Prepare and maintain investigations checklist. Review as required. Investigations checklist Finalise investigations and lodge section 533 report at ASIC. Consider lodging supplementary report to ASIC. (if required). Consider recovery action if appropriate regarding insolvent trading. Dividend Dividend notifications Prepare and send notice of intention to declare a dividend and follow statutory notice requirements. $4, Adjudicate upon claims received from creditors and seek further information as necessary. Secured creditor Remit funds to secured creditor throughout the appointment based on asset realisations and in line with statutory priorities. Payment of dividends Calculate applicable dividend rates and issue dividend letters and cheques and records presentation of same as required. Administration General and Banking Filing, file ing system, photocopying, scanning documents, manage incoming mail. $4, Manage disbursements and data entry of payments and recepts. Update the website with creditors reports and minutes. Maintain checklist for the progress of the liquidation. Taxation Prepare and lodge Business Activity Statements and update BAS register of payments/refunds. Cancel GST registration with the ATO. Advise ATO of finalisation. Statutory lodgements Prepare and lodge notice of cessation of appointment and copy of receipts and payments. Remuneration Manage the remuneration of the Liquidator as approved by creditors. Books and Records Apply to ASIC for the destruction of books and records upon finalisation of the appointment and following approval from ASIC. Arrange for the storage and destruction of the company books and records. TOTAL $34,754.00

37 Appendix A Page 6 of 6 DEH Electrical Services Pty Ltd (Administrator Appointed) A.C.N Voluntary Administration Kimberley Wallman (Administrator) HLB Mann Judd (Insolvency WA) SUMMARY OF ANTICIPATED TASKS TO BE COMPLETED FROM 29 NOVEMBER 2016 TO END OF APPOINTMENT FOR REMUNERATION APPROVAL Employee Dividend Administration Position $/hour Total Hours Total Tasks (ex GST) ($) Assets Creditors Employees Investigation hrs $ hrs $ hrs $ hrs $ hrs $ Wallman, Kim Liquidator $ 13, $ 2, $ 3, $ $ 1, $ 1, $ 2, Quin, Greg Senior Manager $ 9, $ 2, $ 3, $ $ 1, $ $ Panova, Dilyana Intermediate $ 5, $ 1, $ $ $ 2, $ $ Morgan, Samantha Intermediate $ 4, $ 1, $ 1, $ $ $ 1, $ McCann, Montana Secretary $ $ $ $ - $ $ $ Greenaway, Jasmin Secretary $ $ $ $ - $ $ $ TOTAL GST TOTAL (including GST) Average hourly rate $34, $7, $9, $2, $5, $4, $4, $3, $38, $ $ $ $ $ $ $ Expenses (Disbursements) Fax, 10 Photocopy, 2,500 Postage, 60 Advertising, 4 Expenses anticipated from 29 November 2016 to Finalisation GST on expenses TOTAL EXPENSES (including GST) $10.00 $1, $72.00 $ $1, $ $2, Advertising Destruction of Books and Records Basis of Disbursement Claim At cost At cost At cost At cost $1.00 per fax Couriers Printing (externally sourced) Faxes Photocopying & Printing (internally sourced) $0.50 per page Postage (1 unit includes stamp and envelope) At cost Envelopes (C4 size and above) $0.18 per envelope Scale applicable for financial year ending 30 June 2017

38 DEH Electrical Services Pty Ltd (Administrator Appointed) A.C.N Appendix B Voluntary Administration Page 1 of 1 Kimberley Wallman (Administrator) HLB Mann Judd (Insolvency WA) Administrator's Account of Receipts and Payments For the period 27 October 2016 to 16 November 2016 Receipts $ Company Cash at Bank Recovered 11,723 Pre-appointment Debtors Recovered 11,517 Total 23,240 Payments Asset Valuation Fee 495 Total 495 Cash Balance 22,745

39 Creditor Information Sheet Offences, Recoverable Transactions and Insolvent Trading Offences A summary of offences under the Corporations Act 2001 that may be identified by an administrator or liquidator. Section Offence 180 Failure by officer to exercise a reasonable degree of care and diligence in the exercise of his powers and the discharge of his duties 181 Failure to act in good faith 182 Making improper use of position as an officer or employee, to gain, directly or indirectly, an advantage 183 Making improper use of information acquired by virtue of his position 184 Reckless or intentional dishonesty in failing to exercise duties in good faith for proper purpose. Use of position or information dishonestly to gain advantage or cause detriment 206A Contravening an order against taking part in management of a corporation 206A, B Taking part in management of corporation while being an insolvent under an administration 206A, B Acting as a director or promoter or taking part in the management of a company within five years after conviction or imprisonment for various offences 209(3) Dishonest failure to observe requirements on making loans to directors or related companies 254T Paying dividends out of net assets, which are fair and reasonable to members as a whole and not materially prejudicial to creditors 286 Failure to keep proper accounting records 312 Obstruction of auditor Failure to comply with requirements for financial statement preparation 437C Performing or exercising a function or power as officer while a company is under administration 437D(5) Unauthorised dealing with company's property during administration 438B(4) Failure by directors to assist administrator, deliver records and provide information 438C(5) Failure to deliver up books and records to administrator 590 Failure to disclose property, concealed or removed property, concealed a debt due to the company, altered books of the company, fraudulently obtained credit on behalf of the company, material omission from Report as to Affairs or false representation to creditors Voidable transactions Preferences A preference is a transaction such as a payment between the company and one or more of its creditors, in which the creditor receiving the payment is preferred over the general body of creditors. The relevant time period is six months before the commencement of the liquidation. The company must have been insolvent at the time of the transaction, or become insolvent as a result of the transaction. Where a creditor receives a preferred payment, the payment is voidable as against a liquidator and is liable to be paid back to the liquidator subject to the creditor being able to successfully maintain any of the defences available to the creditor under either the Corporations Act Uncommercial transaction An uncommercial transaction is one that it may be expected that a reasonable person in the company's circumstances would not have entered into having regard to: the benefit or detriment to the company the respective benefits to other parties, and any other relevant matter. To be voidable, an uncommercial transaction must have occurred during the two years before the liquidation. AUSTRALIAN RESTRUCTURING INSOLVENCY & TURNAROUND ASSOCIATION