Ms.KathyKing OnbehalfoftheDirectorsofHighLimited 8 Goulbourne St, Sydney NSW 2000

27May 2024

The Manager

KaplanPtyLtd,Accountingfirm

63ElizabethStreet,Sydney,NSW 2000

DearSir/Madam

I am writing to seek your advice regarding numerous accounting issues for the year ended 30 June2024.Oursenioraccountantisonindefinitesickleaveandwerequireyourservices.Ihave included following items that we require for your completion. All work must comply with the AustralianAccountingStandardsandpleasealsoprovideadetailedexplanationoftherationale behind the appropriate accounting treatments.

Theitemsofconcernare asfollows:

Item1

ThefollowinginformationisfinancialstatementsofHighLtdfortheyearended30June 2024.

IncomestatementofHighLtd forthe yearended 30June2024

	$'000	$'000
Sales		927
Interestrevenue		11
Dividendrevenue		5
TotalIncome		943
Less Expenses
CostofSales	320
Otherexpenses(paid)	15
Baddebtsexpenses	7
Wages expense	266
Interestexpense	14
Depreciation-plant	95
Lossofsaleofplant	10	(727)
Profitbeforeincometax		216
Lessincometax expenses		(74)
Profitfortheyear		142

StatementoffinancialpositionofHighLtdasat30June2023 and2024

	2023	2024
Currentassets	$'000	$'000
Depositsatcall	131	277
Trade receivable	221	253
Lessallowanceforbaddebts	(11)	(8)
Interestreceivable	20	15
Inventories	285	335
Non-currentassets
Loan receivable	40	40
Plantatcost	1760	2115
Lessaccumulateddepreciation	(230)	(295)
Currentliabilities
Trade payables	90	100
Accruals	20	30
Tax payables	45	74
Bank overdraft	80	65
Non-currentliabilities
Convertiblenotes	300
Shareholders'equity
Issuedcapital	1556	2256
Retainedearnings	125	207

Other information

1. Forthepurposesofthestatementofcashflows,HighLtddefinescashandcashequivalentsas including cash on hand and at bank and short-term deposits at call, net of outstanding bank overdrafts.

1. Duringthereportingperiod,HighLtdmadetwoissuesofordinarysharesas follows:
   • theconvertiblenotesoutstandingat30June2024wereconvertedto150000ordinary shares issued at a conversion price of $2.00 per share; and
   • 200000shareswereissuedat$2.00pershareforcash.

1. Duringtheyearended30June2024,plantandequipmentcosting$60000andhavingabook value of $30 000 was sold and made a loss of $10 000.

1. Theopeningandclosingbalancesofthe"accruals"accounts(undercurrentliabilities)were attributable to wages and salaries and interest payable as follows:

	Wagesand Salaries	Interest
Openingat1/7/2023	$5,000	$15,000
Closingat30/6/2024	$10,000	$20,000

1. Thecompanyhadaccesstobankoverdraftfacilitiesofuptoamaximumof$100000.The bank overdrafts were payable on demand and were subject to annual review.

1. TheaccountingpolicyofHighLtdwastodiscloseinterestreceivedanddividendsreceivedas investing activities.

Please prepare a statement of cash flows for High Ltd using the direct method. Additionally, includethenotesectionsforcashandcashequivalentsandprovideareconciliationofprofitfor the period to net cash flows from operating activities.