Principal Pritesh Patel 344 Great South Road Papaloeloe. Auckland. New Zealand PO Box 23296. Hunters Corner. Auckland 2 55 Phone: +64 9 277 6852 Fax: +64 9 277 6854 Email: prilesh.palcl@ixtra.co.nz Liquidator?s First Report on the State of Affairs of: Appliance City Limited (In Liquidation) Company Number: 5622213 1 Page Insolvency Practitioners Accountants Insolvency Practitioners Accountants Contents Paragraph Page 1.0 Introduction 3 2.0 Background of the Company Structure 3 3.0 Restrictions 4 4.0 Attachments 4 5.0 Background Information 5 6.0 Reasons for Company Failure 5 7.0 Statement of Affairs As At Date of Liquidation 5 8.0 Proposal for Conduction the Liquidation 5 9.0 Breaches of the Company Act 1993 6 10.0 List of Creditors 6 11.0 Creditors Claim Forms 6 12.0 Personal Property Security Act Retention of Title 6 13.0 Estimated Completion Date of Liquidation Reporting 6 14.0 Contact Details 6 - 7 ?113; Appendices (Appliance City Limited (In Liquidation) Liquidator?s First Report Pursuant to Section 255 of the Companies Act 1993 Company No 5622213 1.0 Introduction Appliance City Limited was placed into liquidation pursuant to Section 241(2)(a) of the Companies Act 1993 (the ?Act?) on 15 February, 2016. The liquidation commenced at 10.00 am on the same day. Prior to liquidation, I af?rm that have had no prior professional dealings with the company?s shareholders except to discuss the consequences of the company?s insolvency and the process of liquidation. Accordingly, I af?rm that I can discharge my duties as an independent liquidator without any con?ict. The Liquidator has completed his statutory obligations in respect to advertising and notifying the Registrar. Public Notice in the NZ Herald was on 16 February 2016. NZ Gazette notice will be published in the 25 February edition under Notice 2016-a1888 2.0 Background of the Company Structure The following details are extracted from the Companies Of?ce from the most recent documents lodged. Companies Register: Company Number: 5622213 23 March 2015 Date of Incorporation: Registered Of?ce: Flat 9, 1 Kingway Avenue, Sandringham 1025 344 Great South Road Hunters Corner Auckland 2025 Registered Of?ce: (E?ective from 23 Feb, 2016) Type of Business: Direct Retail Sales and Customer Finance Numbers of Shares on issue: 2 3 Pugc \3 Share Allocation: 50% Mr Ankit ANKIT 50% Gotami TOMAR Director: Mr Ankit ANKIT Financial Service Providers Register SP Number: Registration Date: 3.0 FSP449686 20 July, 2015 Restrictions This report has been prepared by me in accordance with and for the purpose of section 255 of the Act. It is prepared for the sole purpose of reporting on the state of affairs with respect to the company in liquidation and the conduct of the liquidation. This report is subject to the restrictions as set out in Appendix (A). Furthermore, in preparing this report, I have relied upon and not independently veri?ed the accuracy and/or explanations provided to me. 4.0 Attachments Appendix A Restrictions to the report. AppendixB Notice of Liquidator?s decision to diSpense with Meeting of Creditors. Having regard to the assets and liabilities of the company and the likely result of the liquidation, it is proposed to dispense with a meeting of creditors pursuant to Section 245(1)(a) of the Act. Appendix Notice to Creditors to prove debt or claim. Appendix List of all known creditors and their addresses as required by Section 255(2)(c)(i) of the Act. This listing is based on the information available to the liquidator at the date of this report. Appendix Statement of Affairs as at date of liquidation. Appendix Creditors Proof of Debt form pursuant to sections 304(1)(a) and 304(1)(b) of the Act. 4 l?agc 5.0 Background Information The company was in the business of direct retail sales and customer ?nance. Predominantly it traded its business in the greater Waikato region. Upon appointment, we carried out a due diligence and identi?ed that the company had been trading in non compliance with relevant legislation. This investigation is ongoing and if necessary we may need to refer various matters to the Commerce Commission. 6.0 Reasons for Company Failure The Director advises as the reasons for the demise of the company included increased market competition and greatly increased on line shopping. 7.0 Statement of Affairs as at Date of Liquidation The Liquidator has prepared an estimated Statement of Affairs being the Assets and Liabilities of the company at the date of liquidation. This is subject to Liquidator?s fees and disbursements. I attach a copy, see Appendix (E). 8.0 Proposal for Conducting the Liquidation. 8.1 The Liquidator will recover the books and records of the company. 8.2 The Liquidator will examine the books and records to ensure all assets have been properly accounted for. 8.3 The most signi?cant asset of the Company is its debtor?s ledger. We have commenced a review of this ledger. 8.4 We have been advised that some customers may not have received the goods. 8.5 The Liquidator will examine the records with a view to recovering any monies due to the Company and distribution will be in accordance to the priority set out in the Seventh Schedule of the Act. 8.6 The Liquidator has frozen the Company?s bank account. 8.7 The Liquidator has issued a Sec 261 notice on the Company?s ?eld manager for a formal interview. 5 Pagc 9.0 Breaches of the Companies Act 1993 An investigation into the books, records and affairs of the company will be conducted to determine: 9.1 if any insolvent or voidable transaction have occurred, and 9.2 if there have been any breaches of legislation by the company or its of?cers. 10.0 List of Creditors An initial list of all known creditors has been complied by my of?ce. At this stage the Liquidator is not in a position to clearly identify the list of creditors (including customers who have paid for and not received goods) as this examination is on-going at the date of this report. I attach an interim list under Appendix (D) Page 1 1 11.0 Creditors Claim Forms Enclosed is a notice to all creditors to prove debts or claims and a Proof of Debt form which should be returned to this of?ce by 23 March 2016. All claims will be processed to pursuant to Sec 312 of the Act. 12.0 Personal Property Securities Act Reservation of Title A search of the Personal Property Securities Register (PPSR) disclosed nil security interests registered against the Company as at the date of liquidation. Should any creditor believe that they have security over any property or proceeds from the realisation of the assets, they should contact this of?ce immediately. 13.0 Estimated Completion date of Liquidation and Reporting The Liquidator at this time cannot estimate the completion date of this liquidation. The matters identi?ed in this report will need to be fully investigated. The ?rst 6 report will be due on 1 September 2016. 14.0 Contact Details The Liquidator can be contacted at 344 Great South Road, Papatoetoe, Auckland (PO Box 23 296 Hunters Comer, Auckland 2155) or on telephone (09) 277 6852. Contact Person: Mr Rahul Saini 6 Pugc Email: pritesh.patel@xtra.co.nz For and on behalf of: APPLIANCE CITY LIMITED (IN LIQUIDATION) Pritesh Patel Liquidator Dated this /9?day of February, 2016. 7 Pagc Appendix (A) Restrictions to the Report Appliance City Limited (In Liquidation) All information contained in this report is provided in accordance with Section 255 of the Companies Act 1993. The statements and opinions and observations herein have been made in good faith and on the basis that the information relied upon is true and accurate in all material aspects and not misleading by reasons of omission or otherwise. I have not independently veri?ed the accuracy of the information provided to me. Accordingly I express no Opinion on the reliability, accuracy or completeness of the information provided to me. Whilst all care and attention has been taken in compiling this report, I do not accept any liability arising from this report. The statements, opinions and observations expressed in this report are based on information available as at the date of this report. I reserve the right to review or amend this report if any additional information which was in existence at the date of this report was not brought to my attention or subsequently comes to light. For and on behalf of: APPLIANCE CITY LIMITED (IN LIQUIDATION) Mg/ Pritesh Patel Liquidator Dated this ?/?day of February, 2016. 8 l?agc Appendix (B) Notice of Liquidators Decision to Dispense with Meeting of Creditors (Pursuant to Section 245(l)(a) of the Companies Act 1993) Appliance City Limited (In Liquidation) Having regard to the assets and liabilities of the company, the likely result of the liquidation of the company and other relevant matters, the liquidator has decided pursuant to section 245(1)(a) of the Companies Act 1993 to dispense with the meeting of creditors. I do not however wish to preclude creditors or their authorised agents from expressing their views. Please write to the Liquidator if you have any specific enquiries. For and on behalf of: APPLIANCE CITY LIMITED (IN LIQUIDATION) Pritesh Patel Liquidator Dated this (Z/[Ifay of February, 2016. 9 Pagc Appendix (C) IN THE MATTER of the Companies Act 1993 and IN THE MATTER of APPLIANCE CITY LIMITED (IN LIQUIDATION) NOTICE TO CREDITORS TO PROVE DEBTS OR CLAIMS Notice is hereby given that the undersigned, the Liquidator of Appliance City Limited (In Liquidation) does hereby ?x the 23 March 2016 as the day on or before which the creditors of the Company are to make their claims, and to establish any priority their claims may have under Section 312 of the Companies Act 1993, or be excluded from the bene?t of any distribution made before such claim is made. For and on behalf of: APPLIANCE CITY LIMITED (IN LIQUIDATION) Pritesh Patel! Liquidator Dated this (a day of February, 2016. lOlPagc Appendix (D) List of all Known Creditors as at Date of Liquidation Pursuant to Section 255(2)(c)(i) ofthe Companies Act 1993 Appliance City Limited (In Liquidation) Accident Compensation Commission PO Box 3248, Wellington 6139 Rakesh Rathore 31A Ulster Road Blockhouse Bay 0600 Ankit Ankit Flat 9 1 Kingsway Avenue Sandringham 1025 Auckland Spark (NZ) Private Bag Auckland Ku Wan Young 47 Kiteroa St, Greerton - Tauranga 3112 Guardian Storage 41 Higgins Road Frankton - Hamilton 3204 Inland Revenue Department PO Box 39 010, Wellington Mail Centre, Lower Hutt 5044 Note: The quuidator is yet to compile the list of customers who have paid for and not received goods as at date of liquidation being, 15 February 2016 Appendix (E) Estimated Statement of Affairs as at Date of Liquidation, being 15 February, 2016 Appliance City Limited (In Liquidation) Estimated Realizable Value Assets Not Speci?cally Pledged Old Bank Account 210.00 Debtors Ledger unknown Stock on Hand 4,500.00 Estimated Total Assets Available for Secured, Preferential and Unsecured Creditors unknown Less Preferential Creditors Inland Revenue Department GST unknown PA YE unknown Total Preferential Creditors unknown Total (Secured and Preferential Creditors) unknown Less Unsecured Creditors: Unsecured Creditors (1RD and Customers) unknown Shareholder Advances unknown Total Unsecured Creditors unknown Total Secured, Preferential Unsecured Creditors unknown Deficit (Before Cost of Liquidation) unknown Notes: 1. Subject to quanti?cation of the ?unknown? amounts. 2. The above estimate is subject to costs of liquidator?s fees and disbursements. Disclaimer of Liability 12 Pagc We have prepared the Estimated Statement of Affairs as at date of liquidation being 15 February 2016. The Estimated Statement of Affairs has been prepared based on the information from the records of the company together with information supplied by the Director. The information has not been veri?ed. The Liquidator has not carried out an audit or reviewed the information supplied and therefore does not accept any responsibility for the accuracy of the information from which the Estimated Statement of Affairs has been prepared. Further, the Estimated Statement of Affairs has been prepared for the purpose of the liquidation only, and the Liquidator does not accept any responsibility on any ground whatsoever, including liability in negligence, to any other person. For and on behalf of: APPLIANCE CITY LIMITED (IN LIQUIDATION) Pritesh Patel Liquidator Dated this ??day of February, 2016. 13 Pagc A rlU twill-J ?Appendix PREFRENTIAL UNSECURED CREDITORS CLAIM Section 304(1) Companies Act 1993 APPLIANCE CITY LIMITED (IN LIQUIDATION) Creditor Details Reserved for Of?ce Use Name and postal address Claim admitted Yes No Preferential Claim for Ordinary Claim for Telephone mail: Signed Dated Note: Any personal information collected for the purpose of administrating this liquidation is -in accordance with the Companies Act 1993. This information will be used and retained by Patel Co and will only be released to other parties with your authorization or in compliance with the Privacy Act 1993. Under section 304(1) of the Companies Act 1993 any claim by an unsecured creditor against a company in liquidation must be in this prescribed form and must: 3) Contain full particulars ofthe claim b) Identify any documents that evidence or substantiate the claim (Hciaim is made on behalf of creditor, specify relationship to creditor and authority) claim that the company was at the date it was put into liquidation indebted to the abovenamed creditor for the sum of (Amount in words and ?gures) SIGNED DATE: WARNING - It is an offence under Section 306 of the Companies Act 1993 to - Make or authorize the making ofa claim that is false or misleading in a material knowing it is false or misleading and or Omit or authorize the omission from a claim of any matter knowing that the omission makes the claim false or misleading . 14 a DATE RECEIVED I ?Jv PARTICULARS OF CLAIM - UNSECURED (If a Creditor owes money also to the company, please give full details) DATE DETAILS OF CLAIM AMOUNT PARTICULARS OF CLAIM - PREFRENTIAL (If a Creditor owes money also to the company, please give full details) 1 Are you claiming the full amount of your claim as preferential? Yes No 2 If not, what part of the claim is preferential? 3 Why do you believe you are a preferential creditor? employee, GST etc) 4 Details Of your claim (with supporting evidence) lSIl?agc