QUESTE COMMUNICATIONS LIMITED — Annual Report 2015

Oct 13, 2015

2015

ANNUAL REPORT

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A.B.N 58 081 688 164

CONTENTS

Directors’ Report 1 Remuneration Report 9 Auditor’s Independence Declaration 15 Consolidated Statement of 16 Profit or Loss and Comprehensive Income

Consolidated Statement of 17 Financial Position Consolidated Statement of 18 Changes in Equity

Consolidated Statement of Cash Flows 19 Notes to the Consolidated Financial 20 Statements Directors’ Declaration 44 Independent Auditor’s Report 45 Additional ASX Information 47

CORPORATE DIRECTORY

BOARD

Farooq Khan (Chairman and Managing Director) Victor Ho (Executive Director) Yaqoob Khan (Non-Executive Director)

COMPANY SECRETARY

Victor Ho

PRINCIPAL & REGISTERED OFFICE

Level 2, 23 Ventnor Avenue West Perth, Western Australia 6005

Telephone: (08) 9214 9777 Facsimile: (08) 9214 9701 Email: info@queste.com.au Website: www.queste.com.au

STOCK EXCHANGE

Australian Securities Exchange Perth, Western Australia

ASX CODE

QUE

Queste’s 2015

Corporate Governance Statement can be found at the following URL on the Company’s website: - http://www.queste.com.au/corporate governance

SHARE REGISTRY

Advanced Share Registry Services 110 Stirling Highway Nedlands, Western Australia 6009 Telephone: (08) 9389 8033 Facsimile: (08) 9262 3723

www.queste.com.au

Visit our website for:

• Latest News

• Market Announcements

• Financial Reports

Register your email with us to receive latest Company announcements and releases

EMAIL US AT: info@queste.com.au

Level 6, 225 Clarence Street Sydney, New South Wales 2000 Telephone: (02) 8096 3502 Email: admin@advancedshare.com.au Website: www.advancedshare.com.au

AUDITORS

BDO Audit (WA) Pty Ltd 38 Station Street Subiaco, Western Australia 6008 Telephone: (08) 6382 4600 Facsimile: (08) 6382 4601 Website: www.bdo.com.au/perth

QUESTE COMMUNICATIONS LTD A.B.N. 58 081 688 164

30 JUNE 2015

DIRECTORS’ REPORT

The Directors present their report on Queste Communications Ltd ( Company or QUE ) and its controlled entities (the Consolidated Entity or Queste ) for the financial year ended 30 June 2015 ( Balance Date ).

Queste is a public company limited by shares that is incorporated and domiciled in Western Australia and has been listed on the Australian Securities Exchange ( ASX ) since November 1998.

The Consolidated Entity’s results incorporate the results of controlled entity, ASX-listed investment company, Orion Equities Limited ( Orion or OEQ ). The Company has a 59.06% (9,367,653 shares) shareholding interest in Orion (30 June 2014: 58.90% (9,367,653 shares)).

PRINCIPAL ACTIVITIES

The principal activity of the Company during the financial year was the management of its assets.

The principal activities of controlled entity, Orion, during the financial year were the management of its investments, including investments in listed and unlisted securities, real estate held for development and resale, and an olive grove operation.

OPERATING RESULTS

CONSOLIDATED ENTITY	2015 2014
	$ $
Total revenues Total expenses Loss before tax Income tax benefit Loss for the year Net loss/(profit) attributable to non-controlling interest Loss after tax attributable to owners of the Company Basic and diluted loss per share (cents)	328,312 451,698 (1,473,724) (1,660,780)
	(1,145,412) (1,209,082) 89,501 -
	(1,055,911) (1,209,082) 311,722 (331,184)
	(744,189) (1,540,266)
	(2.52) (5.24)

LOSS PER SHARE
CONSOLIDATED ENTITY	2015 2014
Basic and diluted loss per share (cents) Weighted average number of fully paid ordinary shares in the Company outstanding during the year used in the calculation of basic and diluted earnings per share	(2.52) (5.24) 29,502,441 29,390,385

The Company’s 9,000,000 partly paid ordinary shares, to the extent that they have been paid (1.5225 cent per share), have been included in the determination of the basic loss per share.

DIVIDENDS

The Directors have not declared a dividend in respect of the financial year ended 30 June 2015.

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30 JUNE 2015

DIRECTORS’ REPORT

FINANCIAL POSITION

CONSOLIDATED ENTITY	2015 $ 2014 $
Cash Current investments - equities Investments in Associate entity Inventory Receivables Deferred tax assets Other assets Total Assets Tax liabilities (current and deferred) Other payables and liabilities Net Assets Issued capital Reserves Non-controlling interest Accumulated losses Total Equity	269,805 1,169,619 1,523,346 1,172,419 3,705,212 4,119,072 1,350,000 1,490,000 70,291 175,225 216,374 98,657 2,084,669 1,738,706
	9,219,697 9,963,698 (216,374) (98,657) (278,967) (283,117)
	8,724,356 9,581,924
	6,268,445 6,268,445 3,200,408 3,106,232 3,298,709 3,520,654 (4,043,206) (3,313,407)
	8,724,356 9,581,924

CAPITAL MANAGEMENT

Securities on Issue

At the Balance Date, the Company has the following securities on issue:

• (a) 28,817,316 listed fully paid ordinary shares (2014: 28,817,316 fully paid ordinary shares); and

• (b) 9,000,000 unlisted partly paid ordinary shares[1] ; each paid to 1.5225 cents with 18.4775 cents per partly paid ordinary share outstanding (representing the equivalent of 685,125 voting shares[2] ) (2014: 9,000,000 unlisted partly paid ordinary shares representing the equivalent of 1,522,500 voting shares).

making a total of 29,502,441 voting shares on issue (2014: 29,502,441 voting shares).

There were no securities issued or granted by the Company during or since the financial year.

REVIEW OF OPERATIONS

1. Orion Equities Limited (OEQ)

1.1. Current Status of Investment in Orion

Orion Equities Limited is an ASX-listed investment entity (ASX Code: OEQ).

The Company holds 9,367,653 shares in Orion, being 59.06% of its issued ordinary share capital (2014: 9,367,653 shares and 58.90%). Orion has been recognised as a controlled entity and included as part of the Queste Consolidated Entity’s results since 1 July 2002.

1 The terms of issue of the partly paid shares are disclosed in the Prospectus for the initial public offering of shares in the Company dated 6 August 1998 and also more recently, in the Company’s Share Buy-Back Offer Booklet dated 11 December 2013 and released on ASX on 17 December 2013.

2 Each partly paid share is treated for voting purposes as being a proportion of a fully paid share, equal to the proportion to which it has been paid up - 1.5225 cents per share, representing 7.61% of the $0.20 issue price

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30 JUNE 2015

DIRECTORS’ REPORT

Queste shareholders are advised to refer to the 30 June 2015 Full Year Report and monthly NTA disclosures lodged by Orion for further information about the status and affairs of the company.

Information concerning Orion may be viewed from its website: www.orionequities.com.au

Orion’s market announcements may also be viewed from the ASX website (www.asx.com.au) under ASX code “OEQ”.

Sections 1.2 to 1.4 below contain information extracted from Orion’s public statements.

1.2. Orion’s Portfolio Details as at 30 June 2015

Asset Weighting

	% of Net Assets
	2015 2014
Australian equities Agribusiness3 Property held for development and resale Net tax liabilities (current-year and deferred tax assets/liabilities) Net cash/other assets and provisions TOTAL	58% 56% 25% 20% 17% 17% - - <1% 7%
	100% 100%

Major Holdings in Securities Portfolio

	Fair Value % of ASX Industry Sector
Equities	$’million Net Assets Code Exposures
Bentley Capital Limited Strike Resources Limited CBG Australian Equities Fund (Wholesale) (CBG Fund) Other ASX listed securities TOTAL	2.67 33.10% BEL Diversified Financials 0.80 9.94% SRK Materials 0.26 3.24% N/A Diversified 0.10 1.24% Various Various 3.83 47.52%

1.3. Orion’s On-Market Share Buy-Backs

During the financial year, Orion bought back 45,000 shares on-market at a total cost of $10,495 and at an average buy-back cost (including brokerage) of $0.233 per share, pursuant to a series of on-market share buy-backs[4] .

Subsequent to the end of the financial year and as at the date of this report, Orion bought back 11,300 shares at a total cost of $2,267 and at an average buy-back cost (including brokerage) of $0.20 per share.

1.4. Orion’s Assets

(a) Bentley Capital Limited (ASX Code: BEL)

Bentley Capital Limited ( Bentley ) is a listed investment company with a current exposure to Australian equities.

Orion holds 27.42% (20,513,783 shares) of Bentley’s issued ordinary share capital with Queste holding 2.33% (1,740,625 shares) (2014: Orion held 20,513,783 shares (27.76%) and Queste held 1,740,625 shares (2.36%)).

3 Agribusiness net assets include olive grove land, olive trees, buildings and plant and equipment.

4 Refer to ASX Appendix 3C - Announcement of Buy-Back dated 5 August 2013, ASX Appendix 3C – Announcement of Buy-Back dated 24 February 2014 and ASX Appendix 3C – Announcement of Buy-back dated 5 June 2015

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DIRECTORS’ REPORT

Bentley’s asset weighting as at 30 June 2015 was 95.2% Australian equities (30 June 2014: 94.5%), 3.9% intangible assets (30 June 2014: 2.7%) 0.9% net cash/other assets (30 June 2014: 2.8%).

Bentley had net assets of $16.43 million as at 30 June 2015 (30 June 2014: $17.68 million) and incurred an after-tax net loss of $0.267 million for the financial year (30 June 2014: $0.797 million net loss).

Bentley paid a 0.95 cent and a 0.55 cent fully franked dividend distributed in September 2014 and March 2015 respectively at a total cost of $1.111 million (2014 distributions: one cent capital return and one cent fully franked dividend, totalling $1.468 million).

Orion received $0.308 million from these dividends during the financial year (2014 distributions received: $0.205 million capital return and $0.205 million in dividend).

Queste received $0.026 million from the fully franked dividend during the financial year (2014: $0.017 million in capital returns and $0.17 million in dividend).

Subsequent to 30 June 2015, Bentley announced its intention to pay a fully-franked dividend of 0.5 cent per share. Orion’s and Queste’s entitlement from the fully franked dividend is expected to be approximately $102,569 and $8,703 respectively.

Bentley has a long distribution track record, as illustrated below:

Rate per share	Nature	Queste’s Entitlement	Orion’s Entitlement	Payment Date
0.50 cent	Dividend	$8,703	$102,569	25 September 2015
0.55 cent	Dividend	$9,573	$112,826	20 March 2015
0.95 cent	Dividend	$16,535	$194,881	26 September 2014
One cent	Dividend	$17,406	$205,138	21 March 2014
One cent	Return of capital	$17,406	$205,138	12 December 2013
One cent	Return of capital	$17,406	$205,138	18 April 2013
One cent	Return of capital	$17,406	$205,138	30 November 2012
One cent	Return of capital	$17,406	$205,138	19 April 2012
5.0 cents	Return of capital	$87,031	$1,025,689	14 October 2011
2.4 cents	Dividend (Special)	$41,775	$492,331	26 September 2011
One cent	Dividend	$17,406	$205,138	26 September 2011
One cent	Dividend	$17,406	$205,138	17 March 2011
One cent	Dividend	$17,406	$205,138	30 September 2010
One cent	Dividend	$17,406	$205,138	15March 2010

Shareholders are advised to refer to the 30 June 2015 Full Year Report and monthly NTA disclosures lodged by Bentley for further information about the status and affairs of the company.

Information concerning Bentley may be viewed from its website: www.bel.com.au

Bentley’s market announcements may also be viewed from the ASX website (www.asx.com.au) under ASX code “BEL”.

(b) Strike Resources Limited (ASX Code: SRK)

Strike Resources Limited ( Strike ) is a resources company with iron ore exploration and development projects in Peru.

Orion holds 16,690,802 shares, being 11.48% of Strike’s issued ordinary share capital (2014: 16,690,802 shares and 11.48%).

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DIRECTORS’ REPORT

On 30 June 2015, Bentley announced its intention to make a conditional off-market bid for all of the fully paid ordinary shares in Strike for a cash consideration of 5.5 cents per share (the Bid ).[5 ] Bentley’s Bidder’s Statement was despatched to Strike shareholders on 31 July 2015 with the Bid scheduled to close on 2 September 2015 (unless extended or withdrawn).[6 ] Prior to the launch of the takeover bid, Bentley did not have a relevant interest in any Strike shares.

Queste[7] and Orion[8] will gain a relevant interest in any Strike shares Bentley acquires a relevant interest in under the Bid.

Orion also notes that there are some common Directors and Officers on the Boards of Queste, Bentley, Strike and Orion, as follows:

• Queste Executive Chairman and Managing Director, Farooq Khan, is also Executive Chairman of Orion and Bentley and also an Alternate Director of Strike (as an Alternate Director to Victor Ho);

• Queste Executive Director and Company Secretary, Victor Ho, is also an Executive Director/Company Secretary of Orion, a Company Secretary of Bentley and a Non-Executive Director of Strike; and

• William Johnson is a Non-Executive Director of Bentley and the Managing Director of Strike;

For further details in relation to Bentley’s Bid for Strike, the Company refers to Bentley’s and Strike’s releases on ASX and in particular:

• Bentley’s Bidder’s Statement released on ASX on 31 July 2015; and

• Strike’s Target’s Statement released on ASX on 14 August 2015

On 26 August 2015, Bentley announced that it had freed its Bid from all defeating conditions other than that no Prescribed Occurrence[9] occurs before the end of the offer period.[10 ]

Based on acceptances received as at 28 August 2015:

• Bentley has a relevant interest in 22,498,939 Strike shares (15.481%)[11] ; and

• Inclusive of Bentley’s relevant interest above, Queste/Orion has a relevant interest in 39,189,741 Strike shares (29.965%).[12]

Information concerning Strike may be viewed from its website: www.strikeresources.com.au

Strike’s market announcements may also be viewed from the ASX website (www.asx.com.au) under ASX code “SRK”.

(c) Other Assets

Orion also owns:

• a 143 hectare commercial olive grove operation (with approximately 64,500, 16 year old olive tree plantings) located in Gingin, Western Australian; and

• a property held for redevelopment or sale but currently rented out located in Mandurah, Western Australia.

5 Refer Bentley’s ASX Announcement dated 30 June 2015: Cash Takeover Bid For Strike Resources At 5.5 Cents Per Share

6 Refer Bentley’s ASX Announcement dated 31 July 2015: Despatch of Bidders Statement to Holders of Strike Resources Limited

7 Queste is taken under section 608(3)(b) of the Corporations Act to have a relevant interest in securities in which Orion has a relevant interest by reason of having control of Orion.

8 Orion is taken under section 608(3)(a) of the Corporations Act to have a relevant interest in securities in which Bentley has a relevant interest by reason of having greater than 20% voting power (i.e. shareholding) in Bentley.

9 Refer to the condition in Section 8.7(g) of Bentley’s Bidder’s Statement - a “Prescribed Occurrence” is defined in the Bidder’s Statement as an event or circumstance of the kind referred to in section 652C of the Corporations Act.

10 Refer Bentley’s ASX Announcement dated 26 August 2015: Takeover Bid For Strike Resources –Offer Declared Free Of Defeating Conditions Except Prescribed Occurrences

11

12

Refer Bentley’s AX Announcement dated 31 August 2015: Notice of Change in Interests of Substantial Holder in Strike.

Refer Queste/Orion’s ASX Announcement dated 31 August 2015: Notice of Change in Interests of Substantial Holder in Strike.

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DIRECTORS’ REPORT

2. Queste’s Other Assets

In addition to the investment in controlled entity, Orion, Queste has:

• (i) a direct share investment in Associate entity, Bentley, being 1,740,625 shares (or 2.33% of Bentley’s issued ordinary share capital) (2014: 1,740,625 shares and 2.36%);

• (ii) other investments of $361,227 (2014: $254,057); and

• (iii) a cash holding of $128,998 (2014: $567,929).

Queste will continue to look at undertaking investments in listed securities where appropriate to endeavour to achieve a return on investments beyond that afforded by the interest rates applicable on term deposits.

The Company notes that it lodges Monthly and Quarterly Cash Flow Reports on ASX, which may be may be viewed and downloaded from the Company’s website: www.queste.com.au or the ASX website (www.asx.com.au) under ASX Code: QUE.

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

There were no significant changes in the state of affairs of the Consolidated Entity that occurred during the financial year not otherwise disclosed in this Directors’ Report or the Consolidated Financial Statements.

FUTURE DEVELOPMENTS

The Consolidated Entity intends to continue its investment activities in future years. The results of these investment activities depend upon the performance of the underlying companies and securities in which the Consolidated Entity invests. The investments’ performances depend on many economic factors and also industry and company specific issues. In the opinion of the Directors, it is not possible or appropriate to make a prediction on the future course of markets, the performance of the Consolidated Entity’s investments or the forecast of the likely results of the Consolidated Entity’s activities.

ENVIRONMENTAL REGULATION

The Consolidated Entity is not subject to any particular or significant environmental regulation under Australian Commonwealth or State legislation.

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DIRECTORS’ REPORT

DIRECTORS

Information concerning Directors in office during or since the financial year:

Farooq Khan	Executive Chairman and Managing Director	Executive Chairman and Managing Director
Appointed	10 March 1998
Qualifications	BJuris, LLB (Western Australia)
Experience	Mr Khan is a qualified lawyer having previously practised principally in the field of corporate law.
	Mr Khan has extensive experience in the securities industry, capital markets and the executive
	management of ASX-listed companies. In particular, Mr Khan has guided the establishment and
	growth of a number of public listed companies in the investment, mining and financial services
	sectors. He has	considerable experience in the fields of capital raisings, mergers and acquisitions
	and investments.
Relevant interest in	5,899,944 shares13
shares
Other current	(1) Executive Chairman of Bentley Capital Limited (BEL) (since 2 December 2003)
directorships in listed entities	(2) Executive Chairman of Orion Equities Limited (OEQ) (since 23 October 2006) (3) Alternate Director to Victor Ho, who is Non-Executive Director of Strike Resources Limited
	(SRK) (since 20 January 2014)
Former directorships in	Alara Resources Limited (AUQ) (18 May 2007 to 31 August 2012)
other listed entities in
past 3 years
Victor P. H. Ho	Executive Director and Company Secretary
Appointed	Executive Director since 3 April 2013; Company Secretary since 30 August 2000
Qualifications	BCom, LLB (Western Australia), CTA
Experience	Mr Ho has been in Executive roles with a number of ASX listed companies across the investments,
	resources and technology sectors over the past 15+ years. Mr Ho is a Chartered Tax Adviser (CTA)
	and previously had 9 years’ experience in the taxation profession with the Australian Tax Office
	(ATO) and in a specialist tax law firm. Mr Ho has been actively involved in the structuring and
	execution of a number of corporate, M&A and international joint venture (in South America,
	Indonesia and the Middle East) transactions, capital raisings and capital management initiatives
	and has extensive experience in public company administration, corporations’ law and stock
	exchange compliance and investor/shareholder relations.

Relevant interest in shares 17,500 shares

Other current positions (1) Executive Director and Company Secretary of Orion Equities Limited (OEQ) (Secretary held in listed entities since 2 August 2000 and Director since 4 July 2003)

(2) Non-Executive Director of Strike Resources Limited (SRK) (since 24 January 2014)

(3) Company Secretary of Bentley Capital Limited (BEL) (since 5 February 2004)

Former positions in other Company Secretary of Alara Resources Limited (AUQ) (4 April 2007 to 31 August 2015) listed entities in past 3

years

13 Refer Farooq Khan’s Change of Director’s Interest Notice dated 20 November 2014

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DIRECTORS’ REPORT

Yaqoob Khan

Non-Executive Director

Appointed 10 March 1998

Qualifications BCom (Western Australia), Master of Science in Industrial Administration (Carnegie Mellon)

Experience After working for several years in the Australian Taxation Office, Mr Khan completed his postgraduate Masters degree and commenced work as a senior executive responsible for product marketing, costing systems and production management. Mr Khan has been an integral member of the team responsible for the pre-IPO structuring and IPO promotion of a number of ASX floats and has been involved in the management of such companies. Mr Khan brings considerable international experience in key aspects of corporate finance and the strategic analysis of listed investments.

Relevant interest in shares 68,345 shares Other current directorships in Non-Executive Director of Orion Equities Limited (OEQ) (since 5 November 1999). listed entities

Former directorships in other None listed entities in past 3 years

At the Balance Date, Yaqoob Khan is a resident overseas.

DIRECTORS' MEETINGS

The following table sets out the numbers of meetings of the Company's Directors held during the financial year (including Directors’ circulatory resolutions), and the numbers of meetings attended by each Director of the Company:

Name of Director	Meetings Attended	Maximum Possible Meetings
Farooq Khan	7	7
Yaqoob Khan	7	7
Victor Ho	7	7

There were no meetings of committees of the Board of the Company.

Board Committees

During the financial year and as at the date of this Directors’ Report, the Company did not have separate designated Audit or Remuneration Committees. In the opinion of the Directors, in view of the size of the Board and nature and scale of the Consolidated Entity's activities, matters typically dealt with by an Audit or Remuneration Committee are dealt with by the full Board.

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REMUNERATION REPORT

This report details the nature and amount of remuneration for each Director and Company Executive (being a company secretary or senior manager) ( Key Management Personnel ) of the Consolidated Entity.

The information provided under headings (1) to (6) below has been audited as required under section 308(3)(C) of the Corporations Act 2001 (Cth).

(1) Remuneration Policy

The Board determines the remuneration structure of all Key Management Personnel having regard to the Consolidated Entity’s nature, scale and scope of operations and other relevant factors, including the frequency of Board meetings, length of service, particular experience and qualifications, market practice (including available data concerning remuneration paid by other listed companies in particular companies of comparable size and nature), the duties and accountability of Key Management Personnel and the objective of maintaining a balanced Board which has appropriate expertise and experience, at a reasonable cost to the Company.

Fixed Cash Short Term Employment Benefits: The Key Management Personnel of the Company are paid a fixed amount per annum plus applicable employer superannuation contributions. The NonExecutive Directors of the Company are paid a maximum aggregate base remuneration of $55,000 per annum inclusive of minimum employer superannuation contributions where applicable, to be divided as the Board determines appropriate.

The Board has determined current Company Key Management Personnel remuneration during the year as follows:

• (a) Mr Farooq Khan (Executive Chairman and Managing Director) - a base salary of $125,000 (voluntarily reduced to $62,500 with effect on 1 April 2013 to assist the Company in reducing its corporate overheads) per annum plus employer superannuation contributions.

• (b) Mr Victor Ho (Executive Director and Company Secretary) - a base salary of $45,000 per annum plus employer superannuation contributions. Mr Ho agreed to join the Board as an Executive Director on 3 April 2013 at no further cost to the Company; and

• (c) Mr Yaqoob Khan (Non-Executive Director) - a base fee of $15,000 per annum.

Key Management Personnel can also opt to “salary sacrifice” their cash fees/salary and have them paid wholly or partly as further employer superannuation contributions or benefits exempt from fringe benefits tax.

Special Exertions and Reimbursements: Pursuant to the Company’s Constitution, each Director is entitled to receive:

• (a) Payment for the performance of extra services or the making of special exertions at the request of the Board and for the purposes of the Company.

• (b) Reimbursement of all reasonable expenses (including travelling and accommodation expenses) incurred by a Director for the purpose of attending meetings of the Company or the Board, on the business of the Company, or in carrying out duties as a Director.

Long-Term Benefits: Key Management Personnel have no right to termination payments save for payment of accrued annual leave and long service leave (other than Non-Executive Directors).

Equity Based Benefits: The Company does not presently have any equity (shares or options) based remuneration arrangements for any personnel pursuant to any executive or employee share or option plan or otherwise.

Post-Employment Benefits: The Company does not presently provide retirement benefits to Key Management Personnel.

Performance Related Benefits/Variable Remuneration: The Company does not presently provide short- or long-term incentive/performance based benefits related to the Company’s performance to Key Management Personnel, including payment of cash bonuses. The current remuneration of Key Management Personnel is fixed, is not dependent on the satisfaction of a performance condition and is unrelated to the Company’s performance.

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REMUNERATION REPORT

Service Agreements: The Company does not presently have formal service agreements or employment contracts with any Key Management Personnel.

Financial Performance of Company: There is no relationship between the Company’s current remuneration policy and the Company’s performance.

The Board does not believe that it is appropriate at this time to implement an equity-based benefit scheme or a performance related/variable component to Key Management Personnel remuneration or remuneration generally linked to the Company’s performance but reserves the right to implement these remuneration measures if appropriate in the future (subject to prior shareholder approval where applicable).

In considering the Company's performance and its effects on shareholder wealth, Directors have had regard to the data set out below for the latest financial year and the previous four financial years.

	2015	2014	2013	2012	2011
Loss Before Income Tax ($)	(1,055,911)	(1,209,082)	(3,453,436)	(5,366,862)	(2,957,447)
Basic Earnings/(Loss) per Share (cents)	(2.52)	(5.24)	(6.73)	(9.85)	(5.52)
Dividends Paid ($)	-	-	-	-	-
VWAP Share Price on ASX for financial year ($)	0.00	0.14	0.09	0.11	0.15
ClosingBid SharePrice at 30 June ($)	0.06	0.14	0.09	0.10	0.12

(2) Engagement of Remuneration Consultants

The Company has not engaged any remuneration consultants to provide remuneration recommendations in relation to Key Management Personnel during the year. The Board has established a policy for engaging external Key Management Personnel remuneration consultants which includes, inter alia, that the Non-Executive Directors on the Remuneration Committee be responsible for approving all engagements of and executing contracts to engage remuneration consultants and for receiving remuneration recommendations from remuneration consultants regarding Key Management Personnel. Furthermore, the Company has a policy that remuneration advice provided by remuneration consultants be quarantined from Management where applicable.

(3) Shares held by Key Management Personnel

The number of ordinary shares in the Company during the 2015 reporting period held by Key Management Personnel, including their related parties are set below:

	Balance at		Received as part		Balance at 30
Key Management Personnel	30 June 2014	Additions	Of remuneration	Disposals	June 2015
Executive Directors:
Farooq Khan	6,223,044	-	-	(55,000)	6,168,044
Victor Ho	17,500	-	-	-	17,500
Non-Executive Director:
Yaqoob Khan	68,345	-	-	-	68,345

Note: The disclosures of shareholdings above are in accordance with the accounting standards which require disclosure of shares held directly, indirectly or beneficially by each key management person, a close member of the family of that person, or an entity over which either of these persons have, directly or indirectly, control, joint control or significant influence (as defined under Accounting Standard AASB 124 Related Party Disclosures).

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REMUNERATION REPORT

(4) Details of Remuneration of Key Management Personnel

Details of the nature and amount of each element of remuneration of each Key Management Personnel of the Company paid or payable by the Consolidated Entity during the financial year are as follows:

Paid by the Company (Queste) to its Key Management Personnel

2015				Post-	Other Long-
	Performance			Employment	term	Equity
	related	Short-term Benefits		Benefits	Benefits	Based
		Cash, salary			Long
Key Management		and	Non-cash		service	Shares &
Person	%	commissions	benefit	Superannuation	leave	Options	Total
		$	$	$	$	$	$
Executive Directors:
Farooq Khan	-	60,577	-	5,800	481	-	66,858
Victor Ho	-	45,000	-	4,275	-	-	49,275
Non-Executive Director:
YaqoobKhan	-	15,000	-	-	-	-	15,000

Victor Ho is also Company Secretary of the Company.

2014				Post-	Other Long-
	Performance			Employment	term	Equity
	related	Short-term Benefits		Benefits	Benefits	Based
		Cash, salary			Long
Key Management		and	Non-cash		service	Shares &
Person	%	commissions	benefit	Superannuation	leave	Options	Total
		$	$	$	$	$	$
Executive Directors:
Farooq Khan	-	53,485	-	5,603	7,091	-	66,179
Victor Ho	-	45,000	-	4,162	-	-	49,162
Non-Executive Director:
YaqoobKhan	-	15,000	-	-	-	-	15,000

Paid by Orion to Key Management Personnel (who are also KMP of Queste)

2015				Post-	Other
				Employment	Long-term	Equity
		Short-term Benefits		Benefits	Benefits	Based
		Cash, salary			Long
Key Management	Performance	and	Non-cash		service	Shares &
Personnel	related	commissions	benefit	Superannuation	leave	Options	Total
	%	$	$	$	$	$	$
Executive Directors:
Farooq Khan	-	238,101	-	22,802	1,923	-	262,826
Victor Ho	-	68,750	-	13,375	-	-	82,125
Non-Executive Director:
Yaqoob Khan	-	29,000	-	-	-	-	29,000
2014				Post-	Other
				Employment	Long-term	Equity
		Short-term Benefits		Benefits	Benefits	Based
Key		Cash, salary			Long
Management	Performance	and	Non-cash		service	Shares &
Personnel	related	commissions	benefit	Superannuation	leave	Options	Total
	%	$	$	$	$	$	$
Executive Directors:
Farooq Khan	-	213,942	-	23,125	36,058	-	273,125
Victor Ho	-	75,000	-	6,937	-	-	81,937
Non-Executive Director:
Yaqoob Khan	-	35,000*	-	-	-	-	35,000

• Includes fees received for the performance of extra services or the making of special exertions at the request of the Board and for the purposes of the Company.

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30 JUNE 2015

REMUNERATION REPORT

Victor Ho is also Company Secretary of Orion.

The tables above may be aggregated to arrive at the aggregate amount of each element of remuneration of each Key Management Personnel paid or payable by the Consolidated Entity (ie. Queste and Orion) during the financial year.

(5) Other KMP Transactions

On 1 June 2015, Orion subsidiary, Silver Sands Developments Pty Ltd (SSD) entered into a fixed term standard form residential tenancy agreement with Orion (and Queste) Director, Farooq Khan, to rent out Orion’s Property held for Development or Resale. The lease is for a term of 12 months with the monthly rental being $3,683.

(6) Other Benefits Provided to Key Management Personnel

No Key Management Personnel has during or since the end of the financial year, received or become entitled to receive a benefit, other than a remuneration benefit as disclosed above, by reason of a contract made by the Company or a related entity with the Director or with a firm of which he is a member, or with a Company in which he has a substantial interest.

(7) Voting and Comments on the Remuneration Report at the 2014 AGM

At the Company’s 2014 AGM, a resolution to adopt the 2014 Remuneration Report was not passed by a majority of shareholders.[14] This constituted the Company's "second strike" under the executive remuneration related provisions of the Corporations Act (the Company having received its "first strike" at the 2013 AGM).

As required by the Corporations Act, a resolution to hold fresh elections for directors at a special meeting was put to the vote at the 2014 AGM, however, this ordinary resolution was not passed.

The Board has reviewed the Company’s remuneration policy and considered feedback from relevant stakeholders and believes that the Company’s remuneration structure and practices are appropriate, for the reasons detailed in this Remuneration Report.

This concludes the audited Remuneration Report.

14 Refer Queste’s ASX announcement dated 27 November 2014 “Results of 2014 Annual General Meeting”

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QUESTE COMMUNICATIONS LTD A.B.N. 58 081 688 164

30 JUNE 2015

DIRECTORS’ REPORT

DIRECTORS’ AND OFFICERS’ INSURANCE

The Company and Orion each insure Directors and Officers against liability they may incur in respect of any wrongful acts or omissions made by them in such capacity (to the extent permitted by the Corporations Act) ( D&O Policy ). Details of the amount of the premium paid in respect of the insurance policies are not disclosed as such disclosure is prohibited under the terms of the contract.

DIRECTORS DEEDS

In addition to the rights of indemnity provided under the Company’s Constitution (to the extent permitted by the Corporations Act), the Company has also entered into a deed with each of the Directors and the Company Secretary ( Officer ) to regulate certain matters between the Company and each Officer, both during the time the Officer holds office and after the Officer ceases to be an officer of the Company, including the following matters:

• (a) The Company’s obligation to indemnify an Officer for liabilities or legal costs incurred as an officer of the Company (to the extent permitted by the Corporations Act); and

• (b) Subject to the terms of the deed and the Corporations Act, the Company may advance monies to the Officer to meet any costs or expenses of the Officer incurred in circumstances relating to the indemnities provided under the deed and prior to the outcome of any legal proceedings brought against the Officer.

LEGAL PROCEEDINGS ON BEHALF OF CONSOLIDATED ENTITY

No person has applied for leave of a court to bring proceedings on behalf of the Consolidated Entity or intervene in any proceedings to which the Consolidated Entity is a party for the purpose of taking responsibility on behalf of the Consolidated Entity for all or any part of such proceedings. The Consolidated Entity was not a party to any such proceedings during and since the financial year.

AUDITOR

Details of the amounts paid or payable to the auditor (BDO Audit (WA) Pty Ltd) for audit and non-audit services (tax services) provided during the financial year are set out below:

Consolidated Entity	Company
Audit & Review Fees Non-Audit Services Total	Audit & Review Fees Non-Audit Services Total
$ $ $	$ $ $
68,823 10,408 79,231	33,940 4,550 38,490

The Board is satisfied that the provision of non-audit services by the auditor during the year is compatible with the general standard of independence for auditors imposed by the Corporations Act. The Board is satisfied that the nature of the non-audit services disclosed above did not compromise the general principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants: Professional Independence, including reviewing or auditing the auditor’s own work, acting in a management or decision making capacity for the Company, acting as advocate for the Company or jointly sharing economic risk and rewards. BDO Audit (WA) Pty Ltd continues in office in accordance with section 327B of the Corporations Act.

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30 JUNE 2015

DIRECTORS’ REPORT

EARLY ADOPTION OF ASX CORPORATE GOVERNANCE PRINCIPLES

The Company updated its Corporate Governance Statement[15] in accordance with the early adoption of the Corporate Governance Principles and Recommendations (3[rd] Edition, March 2014) issued by the ASX Corporate Governance Council in respect of the 30 June 2014 financial year, one year before the mandatory adoption date.

The Company will update its Corporate Governance Statement and ASX Appendix 4G (Key to Disclosures of Corporate Governance Principles and Recommendations) for 2015, which will be announced on ASX and uploaded to the Company’s website at: http://www.queste.com.au/corporate-governance.

AUDITORS’ INDEPENDENCE DECLARATION

A copy of the Auditor’s Independence Declaration as required under section 307C of the Corporations Act forms part of this Directors Report and is set out on page 15. This relates to the Auditor’s Independent Review Report, where the Auditors state that they have issued an independence declaration.

EVENTS SUBSEQUENT TO BALANCE DATE

The Directors are not aware of any other matters or circumstances at the date of this Directors’ Report, other than those referred to in this Directors’ Report (in particular, in Review of Operations) or the financial statements or notes thereto (in particular Note 30, that have significantly affected or may significantly affect the operations, the results of operations or the state of affairs of the Company in subsequent financial years.

Signed for and on behalf of the Directors in accordance with a resolution of the Board.

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Farooq Khan Chairman 31 August 2015

==> picture [68 x 45] intentionally omitted <==

Victor Ho Executive Director and Company Secretary

15 Refer market announcement dated 24 October 2014 entitled “2014 Corporate Governance Statement and ASX Appendix 4G Key to Disclosures of Corporate Governance Principles and Recommendations”

ANNUAL REPORT | 14

Tel: +61 8 6382 4600 38 Station Street Fax: +61 8 6382 4601 Subiaco, WA 6008 www.bdo.com.au PO Box 700 West Perth WA 6872 Australia

==> picture [78 x 31] intentionally omitted <==

DECLARATION OF INDEPENDENCE BY WAYNE BASFORD TO THE DIRECTORS OF QUESTE COMMUNICATIONS LTD

As lead auditor of Queste Communications Ltd for the year ended 30 June 2015, I declare that, to the best of my knowledge and belief, there have been:

1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

2. No contraventions of any applicable code of professional conduct in relation to the audit.

This declaration is in respect of Queste Communications Ltd and the entities it controlled during the period.

==> picture [134 x 86] intentionally omitted <==

Wayne Basford

Director

BDO Audit (WA) Pty Ltd

Perth, 31 August 2015

BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation, other than for the acts or omissions of financial services licensees.

QUESTE COMMUNICATIONS LTD A.B.N. 58 081 688 164

30 JUNE 2015

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME for the year ended 30 June 2015

for the year ended 30 June 2015
Note Revenue 2 Other Share of net profit of associate 11 Net gain on financial assets at fair value through profit or loss Reversal of impairment - olive grove land Other income Total revenue and income Expenses 2 Net loss on financial assets at fair value through profit or loss Share of net loss of Associate 11 Cost of goods sold in relation to olive oil operations Olive grove operation expenses Land operation expenses Personnel expenses Occupancy expenses Corporate expenses Finance expenses Administration expenses Loss before income tax Income tax benefit 3 Loss for the year from continuing operations Loss for the year from discontinued operations 4 Loss for the year Other comprehensive income Revaluation of assets, net of tax Total comprehensive loss for the year Profit/(Loss) attributable to: Owners of Queste Communications Ltd Non-controlling interest Total comprehensive income for the year is attributable to: Continuing operations Discontinuing operations 4 Owners of Queste Communications Ltd Continuing operations Discontinuing operations Non-controlling interest Basic loss per share (cents) from continuing operations 5 Basic loss per share (cents) from discontinuing operations Basic loss per share (cents) attributable to the ordinary equity holders of the Company	2015 2014 $ $ 80,289 109,275 - 256,768 142,374 - 101,296 - 4,353 12,619
	328,312 378,662 - (117,649) (80,044) - - (11,209) (71,808) (183,073) (147,217) (7,690) (792,986) (756,539) (69,339) (129,127) (51,561) (47,037) (4,381) (3,589) (256,388) (220,976)
	(1,145,412) (1,098,227) 89,501 -
	(1,055,911) (1,098,227) - (110,855)
	(1,055,911) (1,209,082)
	208,836 -
	(847,075) (1,209,082)
	(744,189) (1,540,266) (311,722) 331,184
	(1,055,911) (1,209,082)
	(535,353) (1,429,411) - (110,855)
	(535,353) (1,540,266)
	(311,722) 331,184 - -
	(311,722) 331,184
	(847,075) (1,209,082)
	(2.52) (4.86) - (0.38)
	(2.52) (5.24)

The accompanying notes form part of these consolidated financial statements

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QUESTE COMMUNICATIONS LTD A.B.N. 58 081 688 164

30 JUNE 2015

CONSOLIDATED STATEMENT OF FINANCIAL POSITION as at 30 June 2015

Note Current assets Cash and cash equivalents 6 Financial assets at fair value through profit or loss 7 Trade and other receivables 8 Other current assets 9 Total current assets Non current assets Trade and other receivables 8 Property held for development or resale 10 Investment in Associate entity 11 Property, plant and equipment 12 Olive trees 13 Intangible assets 14 Deferred tax asset 17 Total Non current assets Total assets Current liabilities Trade and other payables 15 Provisions 16 Total current liabilities Non current liabilities Deferred tax liability 17 Total non current liabilities Total liabilities Net assets Equity Issued capital 18 Reserves 19 Accumulated losses Parent interest Non-controlling interest 20 Total equity	2015 2014 $ $ 269,805 1,169,619 1,523,346 1,172,419 13,171 154,771 8,417 6,124
	1,814,739 2,502,933
	57,120 20,454 1,350,000 1,490,000 3,705,212 4,119,071 2,010,752 1,667,083 65,500 65,500 - - 216,374 98,657
	7,404,958 7,460,765
	9,219,697 9,963,698
	161,957 165,760 117,010 117,357
	278,967 283,117
	216,374 98,657
	216,374 98,657
	495,341 381,774
	8,724,356 9,581,924
	6,268,445 6,268,445 3,200,408 3,106,232 (4,057,596) (3,313,407)
	5,411,257 6,061,270 3,313,099 3,520,654
	8,724,356 9,581,924

The accompanying notes form part of these consolidated financial statements

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QUESTE COMMUNICATIONS LTD A.B.N. 58 081 688 164

30 JUNE 2015

CONSOLIDATED STATEMENT

OF CHANGES IN EQUITY for the year ended 30 June 2015

Balance at 1 July 2013 Loss for the year Other comprehensive income loss for the year Transactions with owners in their capacity as owners: non-controlling interest Share buy back Partly paid shares Balance at 30 June 2014 loss for the year Transactions with owners in their capacity as owners: non-controlling interest Balance at 30 June 2015 Total comprehensive Other comprehensive income Loss for the year Balance at 1 July 2014 Transactions with Transactions with Total comprehensive	$ $ $ $ $ 6,192,427 2,257,792 (1,773,141) 4,546,707 11,223,785 - - (1,540,266) 331,184 (1,209,082) - - - - - Accumulated losses Non- controlling interest Total Reserves Issued capital
	- - (1,540,266) 331,184 (1,209,082) - 848,440 - (1,357,237) (508,797) (108,757) - (108,757) 184,775 184,775
	6,268,445 3,106,232 (3,313,407) 3,520,654 9,581,924
	6,268,445 3,106,232 (3,313,407) 3,520,654 9,581,924 - - (744,189) (311,722) (1,055,911) - 208,836 - - 208,836
	- 208,836 (744,189) (311,722) (847,075) - (114,660) - 104,167 (10,493)
	6,268,445 3,200,408 (4,057,596) 3,313,099 8,724,356

The accompanying notes form part of these consolidated financial statements

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QUESTE COMMUNICATIONS LTD A.B.N. 58 081 688 164

30 JUNE 2015

CONSOLIDATED STATEMENT

OF CASH FLOWS

for the year ended 30 June 2015

Note Cash flows from operating activities Receipts from customers Dividends received Interest received Payments to suppliers and employees Interest paid Sale of financial assets at fair value through profit or loss Purchase of financial assets at fair value through profit or loss Net cash used in continuing operations Net cash (used in)/provided by discontinued operations 4 Net cash used in operating activities Cash flows from investing activities Proceeds from sale of olive oil operations 4 Purchase of investment securities Return of capital received Purchase of plant and equipment Net cash provided by/(used in) investing activities Cash flows from financing activities Queste off-market share buy back Proceeds from calls on partly paid shares Orion on-market share buy back Net cash used in financing activities Net increase /(decrease) in cash held Cash and cash equivalents at beginning of financial year Cash and cash equivalents at end of financial year 6	2015 2014 $ $ 65,736 157,838 340,754 222,770 11,968 75,125 (1,201,380) (1,063,297) (140) (375) 509,824 - (718,376) (250,000)
	(991,614) (857,939) 9,369 (216,799)
	(982,245) (1,074,738)
	101,994 - - (250,000) - 222,544 (9,068) (43,004)
	92,926 (70,460)
	- (108,756) - 184,775 (10,495) (508,798)
	(10,495) (432,779)
	(899,814) (1,577,977) 1,169,619 2,747,596
	269,805 1,169,619

The accompanying notes form part of these consolidated financial statements

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QUESTE COMMUNICATIONS LTD A.B.N. 58 081 688 164

30 JUNE 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2015

1. SUMMARY OF ACCOUNTING POLICIES

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

The financial statement includes the financial statements for the Consolidated Entity consisting of Queste Communications Ltd and its subsidiaries. Queste Communications Ltd is a company limited by shares, incorporated in Western Australia, Australia and whose shares are publicly traded on the Australian Securities Exchange ( ASX ).

1.1. Basis of preparation

These general purpose financial statements have been prepared in accordance with Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board, Australia Accounting Interpretations and the Corporations Act 2001 (Cth), as appropriate for for-profit entities.

Compliance with IFRS

The consolidated financial statements of the Consolidated Entity, Queste Communications Ltd, also comply with International Financial Reporting Standards ( IFRS ) as issued by the International Accounting Standards Board ( IASB ).

Reporting Basis and Conventions

The financial report has been prepared on an accruals basis and is based on historical costs modified by the revaluation of selected non-current assets, and financial assets and financial liabilities for which the fair value basis of accounting has been applied.

1.2. Principles of Consolidation

The consolidated financial statements incorporate the assets and liabilities of the subsidiary of Queste Communications Ltd as at 30 June 2014 and the results of its subsidiary for the year then ended. Queste Communications Ltd and its subsidiary are referred to in this financial statement as the Consolidated Entity.

Subsidiaries are all entities (including structured entities) over which the Consolidated Entity has control. The Consolidated Entity controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are deconsolidated from the date that control ceases. Information on the controlled entity is contained in Note 22 to the financial statements.

Subsidiaries are fully consolidated from the date on which control is transferred to the Consolidated Entity. They are deconsolidated from the date that control ceases.

All controlled entities have a June financial year-end. All intercompany balances and transactions between entities in the Consolidated Entity, including any unrealised profits or losses, have been eliminated on consolidation.

The Consolidated Entity treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of the Consolidated Entity. A change in ownership interest results in an adjustment between the carrying amounts of

the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognised in a separate reserve within equity attributable to owners of Queste Communications Ltd.

Changes in Ownership Interests

When the Consolidated Entity ceases to have control or significant influence, any retained interest in the entity is re-measured to its fair value with the change in carrying amount recognised in profit or loss. The fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the Consolidated Entity has directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss.

If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognised in other comprehensive income are reclassified to profit or loss where appropriate.

1.3. Investments in Associates

Associates are all entities over which the Consolidated Entity has significant influence but not control or joint control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates in the consolidated financial statements are accounted for using the equity method of accounting. On initial recognition investment in associates are recognised at cost, for investments which were classified as fair value through profit or loss, any gains or losses previously recognised are reversed through profit or loss. Under this method, the Consolidated Entity’s share of the post-acquisition profits or losses of associates are recognised in the consolidated Statement of Profit or Loss and Other Comprehensive Income, and its share of post-acquisition movements in reserves is recognised in other comprehensive income. The cumulative postacquisition movements are adjusted against the carrying amount of the investment (refer Note 11).

Dividends receivable from associates are recognised in the Company’s Statement of Profit or Loss and Other Comprehensive Income, while in the consolidated financial statements they reduce the carrying amount of the investment. When the Consolidated Entity’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured long-term receivables, the Consolidated Entity does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate.

Unrealised gains on transactions between the Consolidated Entity and its associates are eliminated to the extent of the Consolidated Entity’s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been changed where necessary to ensure consistency with the policies adopted by the Consolidated Entity. All associated entities have a June financial year-end.

1.4. Operating Segment

Operating segments are presented using the ‘management approach’, where the information presented is on the same basis as the internal reports provided to the Chief Operating Decision Makers ( CODM ). The CODM is responsible for the allocation of

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QUESTE COMMUNICATIONS LTD A.B.N. 58 081 688 164

30 JUNE 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2015

resources to operating segments and assessing their performance.

1.5. Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Consolidated Entity and the revenue can be reliably measured. All revenue is stated net of the amount of goods and services tax ( GST ) except where the amount of GST incurred is not recoverable from the Australian Tax Office. The following specific recognition criteria must also be met before revenue is recognised:

Sale of Goods and Disposal of Assets

Revenue from the sale of goods and disposal of other assets is recognised when the Consolidated Entity has passed control of the goods or other assets to the buyer.

Contributions of Assets

Revenue arising from the contribution of assets is recognised when the Consolidated Entity gains control of the asset or the right to receive the contribution.

Interest Revenue

Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.

Dividend Revenue

Dividend revenue is recognised when the right to receive a dividend has been established. The Consolidated Entity brings dividend revenue to account on the applicable ex-dividend entitlement date.

Other Revenues

Consolidated Entity will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.

Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of investments in controlled entities where the parent entity is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Current and deferred tax balances attributable to amounts recognised directly in other comprehensive income or equity are also recognised directly in other comprehensive income or equity.

1.7. Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the Statement of Financial Position are shown inclusive of GST. Cash flows are presented in the Statement of Cash Flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.

1.8. Employee Benefits

Other revenues are recognised on a receipts basis.

Short-term obligations

1.6. Income Tax

The income tax expense or revenue for the period is the tax payable on the current period’s taxable income based on the notional income tax rate for each taxing jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements, and to unused tax losses (if applicable).

Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are recovered or liabilities are settled, based on those tax rates which are enacted or substantively enacted for each taxing jurisdiction. The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences to measure the deferred tax asset or liability. An exception is made for certain temporary differences arising from the initial recognition of an asset or a liability. No deferred tax asset or liability is recognised in relation to these temporary differences if they arose in a transaction, other than a business combination, that at the time of the transaction did not affect either accounting profit or taxable profit or loss.

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. The amount of deferred tax assets benefits brought to account or which may be realised in the future, is based on the assumption that no adverse change will occur in income taxation legislation and the anticipation that the

Provision is made for the Consolidated Entity’s liability for employee benefits arising from services rendered by employees to the Balance Date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related oncosts. Employee benefits payable later than one year from the Balance Date have been measured at the present value of the estimated future cash outflows to be made for those benefits. Employer superannuation contributions are made by the Consolidated Entity in accordance with statutory obligations and are charged as an expense when incurred.

Other long-term employee benefit obligations

The liability for long-service leave is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service.

1.9. Cash and Cash Equivalents

Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts (if any) are shown within short-term borrowings in current liabilities on the Statement of Financial Position.

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30 JUNE 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2015

1.10. Receivables

Trade and other receivables are recorded at amounts due less any provision for doubtful debts. An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off when considered non-recoverable.

1.11. Dividends Policy

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the financial year but not distributed at the Balance Date.

1.12. Investments and Other Financial Assets and Liabilities

Financial instruments are initially measured at cost on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below.

Financial assets at fair value through profit and loss A financial asset is classified in this category if acquired principally for the purpose of selling in the short term or if so designated by management and within the requirements of AASB 139: Recognition and Measurement of Financial Instruments. Realised and unrealised gains and losses arising from changes in the fair value of these assets are included in the Statement of Profit or Loss and Other Comprehensive Income in the period in which they arise.

Available for sale financial assets

Available for sale financial assets, comprising principally marketable equity securities, are non-derivatives that are either designated in this category or not classified in any other category. Realised and unrealised gains and losses arising from changes in the fair value of these assets are recognised in equity in the period in which they arise.

purposes. The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and trading and available-for-sale securities) is based on quoted market prices at the Balance Date. The quoted market price used for financial assets held by the Consolidated Entity is the current bid price; the appropriate quoted market price for financial liabilities is the current ask price.

The fair value of financial instruments that are not traded in an active market (for example over-the-counter derivatives) is determined using valuation techniques, including but not limited to recent arm’s length transactions, reference to similar instruments and option pricing models. The Consolidated Entity may use a variety of methods and makes assumptions that are based on market conditions existing at each Balance Date. Other techniques, such as estimated discounted cash flows, are used to determine fair value for other financial instruments.

The nominal value less estimated credit adjustments of trade receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Consolidated Entity for similar financial instruments.

The Consolidated Entity’s investment portfolio (comprising listed and unlisted securities) is accounted for as a “financial assets at fair value through profit and loss” and is carried at fair value based on the quoted last bid prices at the reporting date (refer Note 7).

1.14. Property held for Resale

Property held for development and sale is valued at the lower of cost and net realisable value. Cost includes the cost of acquisition, development, borrowing costs and holding costs until completion of development. Finance costs and holding charges incurred after development are expensed. Profits are brought to account on the signing of an unconditional contract of sale.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are stated at amortised cost using the effective interest rate method.

Financial liabilities

Non-derivative financial liabilities are recognised at amortised cost, comprising original debt less principal payments and amortisation.

Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar instruments and option pricing models.

At each reporting date, the Consolidated Entity assesses whether there is objective evidence that a financial instrument has been impaired. Impairment losses are recognised in the profit and loss.

The Consolidated Entity’s investment portfolio (comprising listed and unlisted securities) is accounted for as “financial assets at fair value through profit and loss”.

1.13. Fair value Estimation

1.15. Property, Plant and Equipment

All plant and equipment are stated at historical cost less accumulated depreciation and impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Freehold land is not depreciated. Increases in the carrying amount arising on revaluation of land is recognised, net of tax, in other comprehensive income and accumulated in reserves in equity. To the extent that the increase reverses a decrease previously recognised in profit or loss, the increase is first recognised in profit or loss. Decreases that reverse previous increases of the same asset are first recognised in other comprehensive income to the extent of the remaining surplus attributable to the asset; all other decreases are charged to profit or loss. It is shown at fair value, based on periodic valuations by external independent valuers.

The carrying amount of plant and equipment is reviewed annually by Directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the assets’ employment and subsequent disposal. The expected net cash flows have been discounted to their present value in determining recoverable amount.

The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2015

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Consolidated Entity and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the Statement of Profit or Loss and Other Comprehensive Income during the financial period in which they are incurred.

The depreciation rates used for each class of depreciable assets are:

Class of Fixed Asset	Rate	Method
Buildings	7.5%	Diminishing Value
Plant and Equipment	5-75%	Diminishing Value
Leasehold Improvements	7.5-15%	Diminishing Value

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each Balance Date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the profit and loss. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings.

1.16. Impairment of Assets

At each reporting date, the Consolidated Entity reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the profit or loss. Impairment testing is performed annually for goodwill and intangible assets with indefinite lives. Where it is not possible to estimate the recoverable amount of an individual asset, the Consolidated Entity estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.20. Earnings Per Share

Basic Earnings per share

Is determined by dividing the operating result after income tax by the weighted average number of ordinary shares on issue during the financial period.

Diluted Earnings per share

Adjusts the figures used in the determination of basic earnings per share by taking into account amounts unpaid on ordinary shares and any reduction in earnings per share that will probably arise from the exercise of options outstanding during the financial period.

1.21. Inventories

Raw materials and stores, work in progress and finished goods

Raw materials and stores, work in progress and finished goods are stated at the lower of cost and net realisable value. Cost comprises direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. They include the transfer from equity of any gains or losses on qualifying cash flow hedges relating to purchases of raw materials. Costs are assigned to individual items of inventory on the basis of weighted average costs. Costs of purchased inventory are determined after deducting rebates and discounts. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

Land held for resale/capitalisation of borrowing costs Land held for resale is stated at the lower of cost and net realisable value. Cost is assigned by specific identification and includes the cost of acquisition, and development and borrowing costs during development. When development is completed borrowing costs and other holding charges are expensed as incurred.

Borrowing costs included in the cost of land held for resale are those costs that would have been avoided if the expenditure on the acquisition and development of the land had not been made. Borrowing costs incurred while active development is interrupted for extended periods are recognised as expenses.

1.17. Payables

1.22. Leases

These amounts represent liabilities for goods and services provided to the Consolidated Entity prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

1.18. Provisions

Provisions for legal claims, service warranties and make good obligations are made where the Consolidated Entity has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount has been reliably estimated. Provisions are not recognised for future operating losses.

1.19. Issued Capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Incremental costs directly attributable to the issue of new shares or options, for the acquisition of a business, are included in the cost of the acquisition as part of the purchase consideration.

Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Consolidated Entity as lessee are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the profit or loss on a straight-line basis over the period of the lease.

1.23. Intangible Assets

The intangible assets acquired in a business combination are initially measured at its purchase price as its fair value at the acquisition date. The revaluation method states that after the initial recognition, an intangible asset shall be carried at a revalued amount, being its fair value at the date of the revaluation less any subsequent accumulated amortisation and any subsequent accumulated impairment losses. For the purpose of revaluations under AASB 138: Intangible Assets, fair value shall be determined by reference to an active market. Revaluations shall be made with such regularity that at the end of the reporting period the carrying amount of the asset does not differ materially from its fair value.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2015

1.24. Biological Assets

Biological assets are initially, and subsequent to initial recognition, measured at their fair value less any estimated point-of-sale costs. Gains or losses arising on initial or subsequent recognition are accounted for via the profit or loss for the period in which the gain or loss arises. Agricultural produce harvested from the biological assets shall be measured at its fair value less estimated point-of-sale costs at the point of harvest.

1.25. Comparative Figures

Certain comparative figures have been adjusted to conform to changes in presentation for the current financial year.

1.26. Critical accounting judgements and estimates

The preparation of the consolidated financial statements requires Directors to make judgements and estimates and form assumptions that affect how certain assets, liabilities, revenue, expenses and equity are reported. At each reporting period, the Directors evaluate their judgements and estimates based on historical experience and on other various factors they believe to be reasonable under the circumstances, the results of which form the basis of the carrying values of assets and liabilities (that are not readily apparent from other sources, such as independent valuations). Actual results may differ from these estimates under different assumptions and conditions.

Non-current assets estimated at fair value

The Consolidated Entity carries its freehold land at fair value, with changes in the fair values recognised in equity. It also carries inventory (land held for development and resale) and olive trees at fair value, with changes in the fair value recognised in the Statement of Profit or Loss and Other Comprehensive Income. Independent valuations are obtained for these non-current assets at least annually.

Estimation of useful lives of assets

The Consolidated Entity determines the estimated useful lives and related depreciation and amortisation charges for its property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical innovations, market, economic, legal environment or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down.

Property, Plant & Equipment – Impairment Assessment In assessing the recoverable amount of the groups farm property, plant and equipment, management monitors the worldwide olive oil prices annually in determining if the Gingin olives should be harvested. As such the property, plant and equipment is carried at its written down value and continues to be depreciated as it is in a condition to be used to generate economic benefits to the group at such time as required and the assets are maintained in good working condition therefore their recoverable amount has been assessed to be in excess of their carrying values at reporting date.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2015

1.27. Summary of Accounting Standards Issued but not yet Effective

The following new Accounting Standards and Interpretations (which have been released but not yet adopted) have no material impact on the Consolidated Entity’s financial statements or the associated notes therein.

	Title and
AASB	Affected
reference	Standard(s)	Nature of Change	Application date
		Classification and measurement
AASB 9 (issued	Financial	AASB 9 amendments the classification and measurement of financial	Annual reporting periods
December 2014)	Instruments	assets:	beginning on or after 1
		• Financial assets will either be measured at amortised cost, fair value	January 2018
		through other comprehensive income (FVTOCI) or fair value through
		profit or loss (FVTPL).
		• Financial assets are measured at amortised cost or FVTOCI if certain
		restrictive conditions are met. All other financial assets are measured
		at FVTPL.
		• All investments in equity instruments will be measured at fair value.
		For those investments in equity instruments that are not held for
		trading, there is an irrevocable election to present gains and losses
		in OCI. Dividends will be recognised in profit or loss
		The following requirements have generally been carried forward
		unchanged from AASB 139 Financial Instruments: Recognition and
		Measurement into AASB 9:
		• Classification and measurement of financial liabilities, and
		• Derecognition requirements for financial assets and liabilities.
		However, AASB 9 requires that gains or losses on financial liabilities
		measured at fair value are recognised in profit or loss, except that the
		effects of changes in the liability’s credit risk are recognised in other
		comprehensive income.
		Impairment
		The new impairment model in AASB 9 is now based on an ‘expected loss’
		model rather than an ‘incurred loss’ model.
		A complex three stage model applies to debt instruments at amortised
		cost or at fair value through other comprehensive income for recognising
		impairment losses.
		A simplified impairment model applies to trade receivables and lease
		receivables with maturities that are less than 12 months. For trade
		receivables and lease receivables with maturity longer than 12 months,
		entities have a choice of applying the complex three stage model or the
		simplified model.
AASB 2015-1	Amendments to	Non-urgent but necessary changes to standards	Annual periods
(issued January	Australian		beginning on or after 1
2015)	Accounting		January 2016
	Standards - Annual
	Improvements to
	Australian
	Accounting
	Standards 2012-
	2014 Cycle
AASB 2014-9 (issued December 2014)	Amendments to Australian Accounting Standards - Equity	Currently, investments in subsidiaries, associates and joint ventures are accounted for in separate financial statements at cost or at fair value under AASB 139/AASB 9. These amendments provide an additional option to account for these investments using the equity method as described in AASB 128 Investments in Associates and Joint Ventures.	Annual periods beginning on or after 1 January 2016
	Method in
	Separate Financial
	Statements
IFRS 15 (issued June 2014)	Revenue from contracts with customers	An entity will recognise revenue to depict the transfer of promised good or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This means that revenue will be recognised when control of	Annual reporting periods beginning on or after 1 January 2018
		goods or services is transferred, rather than on transfer of risks and
		rewards asis currently the case under IAS18Revenue.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2015

2. LOSS FOR THE YEAR

The Consolidated Entity's operating loss before income tax includes the following items of revenue and expense:

(a) Revenue Revenue from sale of olive oils Rental revenue Dividend revenue Interest revenue Other Share of net profit of associate Net gain on financial assets at fair value through profit or loss Reversal of impairment - olive grove land Other income (b) Expenses Net loss on financial assets at fair value through profit or loss Share of net loss of Associate Olive grove operations Cost of goods sold Depreciation of olive grove assets Net loss on disposal of brand, equipment and inventory Other expenses Land operations Impairment loss on property held for development or resale Other expenses Salaries, fees and employee benefits Occupancy expenses Finance expenses Corporate expenses ASX fees Share registry Other corporate expenses Administration expenses Professional fees Audit fees Legal fees Depreciation Other administration expenses	2015 2014 $ $ - 5,298 44,200 44,200 24,121 226 11,968 59,551
	80,289 109,275 256,768 142,374 - 101,296 - 4,353 12,619
	328,312 378,662
	- 117,649 80,044 - - 11,209 51,602 64,602 - 66,196 20,206 52,275 140,000 - 7,217 7,690 792,986 756,539 69,339 129,127 4,381 3,589 34,308 29,224 12,673 14,346 4,580 3,467 51,561 71,194 68,823 59,612 42,747 66,051 9,785 9,089 83,472 15,030
	1,473,724 1,476,889

3. INCOME TAX EXPENSE The components of tax expense/(benefit) comprise: Current tax Deferred tax 17 Income tax expense is attributable to: Loss from continuing operations Loss from discontinuing operations	2015 2014 $ $ - - (89,501) -
	(89,501) -
	- - - -
	- -

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2015

3. INCOME TAX EXPENSE (continued)

The prima facie tax on operating loss before income tax is	2015	2014
reconciled to the income tax as follows:	$	$
Prima facie tax payable on operating loss before income tax at 30% (2014:	(355,063)	(362,725)
30%)
Adjust tax effect of:
Other assessable income	143,876	95,405
Non-deductible expenses	13,300	20,093
Share of net (profit)/loss of associate	24,013	(77,031)
Current year tax losses not brought to account	84,373	324,258
Income tax attributable to entity	(89,501)	-
Deferred tax recognised directly in Other Comprehensive Income
Revaluations of land	(89,501)	-
Unrecognised deferred tax balances
Unrecognised deferred tax asset - revenue losses	3,580,204	3,302,461
Unrecognised deferred tax asset - capital losses	35,241	3,119
Unrecognised deferred tax asset - timing differences	1,249,845	1,431,971
	3,615,445	3,305,580

The above deferred tax assets have not been recognised in respect of the above items because it is not probable that future taxable profit will be available against which the Consolidated Entity can utilise the benefits. Revenue and capital tax losses are subject to relevant statutory tests.

4. DISCONTINUED OPERATIONS

On 30 June 2014, the Consolidated Entity sold a segment of olive oil operations as a going concern. The brand, equipment and oil inventory relating to the segment were sold in consideration of $101,994 in cash, resulting in a net loss of $66,196.

The operating loss from this discontinued operations are: Revenue from sale of olive oil Olive oil operation expenses Cost of goods sold Impairment and depreciation of olive oil assets Other expenses Loss for the year from discontinued operations Current assets Inventories Plant and equipment Non-current assets Intangibles Total assets The carrying amount of assets in this discontinued operations are summarised as follows:	2015 2014 $ $ - 191,213 - (222,435) - (2,924) - (76,709)
	- (110,855)
	- 69,557 - 23,637 - 74,996
	- 168,190

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30 JUNE 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2015

4. DISCONTINUED OPERATIONS (continued)

	The Cash Flows generated from the discontinued operations are as follows:	2015	2014
	Operating activates	$	$
	Receipts from customers	16,907	82,345
	Payments to suppliers and employees	(7,538)	(299,144)
	Net cash used in discontinued operations	9,369	(216,799)
5.	LOSS PER SHARE
		2015	2014
	The following represents the loss and weighted average number of shares	$	$
	used in the loss per share calculations:
	Loss per share from continuing operations
	Loss after income tax from continuing operations	(744,189)	(1,429,411)
	Loss after income tax from discontinuing operations	-	(110,855)
	Loss after tax attributable to the ordinary equity holders of the Company	(744,189)	(1,540,266)
	Loss per share from discontinuing operations
	Loss after income tax from discontinuing operations	-	(110,855)
		Number of shares
	Weighted average number of ordinary shares	29,502,441	29,390,385
		2015	2014
	Basic loss per share	cents	cents
	From continuing operations attributable to the ordinary equity holders of the
	Company	(2.52)	(4.86)
	From discontinued operations	-	(0.38)
	Total basic loss per share attributable to the ordinary equity holders of the
	Company	(2.52)	(5.24)

Under AASB 133 Earnings per Share, potential ordinary shares such as partly paid shares will only be treated as dilutive when their conversion to ordinary shares would increase the loss per share. Diluted loss per share is not calculated as it does not increase the loss per share.

6. CASH AND CASH EQUIVALENTS

(a) Reconciliation of cash

Cash at the end of the financial year as shown in the Statement of Cash Flows is reconciled to the related items in the Statement of Financial Position as follows:

Cash at bank and in hand Short-term deposits	2015 2014 $ $ 269,805 1,119,619 - 50,000
	269,805 1,169,619

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2015

6. CASH AND CASH EQUIVALENTS (continued)

(b)	Reconciliation of operating loss after income tax to net cash	2015	2014
	used in operating activities	$	$
	Loss after income tax	(1,055,911)	(1,209,082)
	Add/(deduct) non-cash items:
	Depreciation	61,388	76,615
	Write off of plant and equipment	3,645	5,908
	Net loss/(gain) on financial assets at fair value through profit or loss	(120,761)	51,453
	Loss on land held for development or resale	140,000	-
	Reversal of impairment - olive grove assets	(101,296)	-
	Share of net loss/(profit) of Associate	80,044	(256,768)
	Changes in assets and liabilities:
	Financial assets at fair value through profit or loss	(230,165)	(250,000)
	Trade and other receivables	2,940	87,460
	Inventories	-	140,622
	Other non-current assets from discontinued operations	-	98,633
	Other current assets	(2,293)	(270)
	Investments accounted for using the equity method	333,815	222,544
	Trade and other payables	(3,804)	15,779
	Provisions	(346)	(57,632)
	Deferred tax	(89,501)	-
		(982,245)	(1,074,738)

(c) Risk exposure

The Consolidated Entity’s exposure to interest rate risk is discussed in Note 24. The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of cash and cash equivalents mentioned above.

7.

FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS Current Listed securities at fair value Unlisted managed fund at fair value Risk exposure	2015 2014 $ $ 1,001,185 672,659 522,161 499,760
	1,523,346 1,172,419

The Consolidated Entity’s exposure to price risk is discussed in Note 24.

8. TRADE AND OTHER RECEIVABLES

Current Trade receivables Interest receivable Receivable from related parties Other receivables Non current Bonds and guarantees	- 129,235 - 3,420 2,373 3,148 10,798 18,968
	13,171 154,771
	57,120 20,454

Risk exposure

The Consolidated Entity’s exposure to credit and interest rate risks is discussed in Note 24.

Impaired trade receivables

None of the Consolidated Entity's receivables are impaired or past due.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2015

9. OTHER CURRENT ASSETS Prepayments 10. PROPERTY HELD FOR DEVELOPMENT OR RESALE Property held for development or resale Impairment of property	2015 2014 $ $ 8,417 6,124
	3,797,339 3,797,339 (2,447,339) (2,307,339)
	1,350,000 1,490,000

Property held for development or resale was last valued by an independent qualified valuer (a Certified Practising Valuer and Associate Member of the Australian Property Institute) as at 30 June 2015. The impairment loss of $140,000 has been recognised in the Statement of Profit or Loss and Other Comprehensive Income.

11.	INVESTMENT IN ASSOCIATE ENTITY			Carrying	Amount
		Ownership	Interest	2015	2014
		2015	2014	$	$
	Bentley Capital Limited (ASX:BEL)	29.75%	30.12%	3,705,212	4,119,071
	Movements in carrying amounts
	Opening balance			4,119,071	4,307,391
	Share of net profit/(loss) after tax			(80,044)	256,768
	Dividends received			(333,815)	(222,544)
	Returns of capital received			-	(222,544)
	Closing balance			3,705,212	4,119,071
	Fair value of listed investment in Associate			2,893,073	3,226,889
	Net asset value of investment			4,887,071	5,323,365
	Summarised statement of profit or loss and	other comprehensive income
	Revenue			2,398,085	2,091,248
	Expenses			(2,665,385)	(1,298,338)
	Profit/(Loss) before income tax			(267,300)	792,910
	Income tax expense			-	3,698
	Profit/(Loss) after income tax			(267,300)	796,608
	Other comprehensive income			-	-
	Total comprehensive income			(267,300)	796,608
	Summarised statement of financial position
	Current assets			6,565,383	17,384,218
	Non-current assets			10,524,117	878,452
	Total assets			17,089,500	18,262,670
	Current liabilities			304,394	206,914
	Non-current liabilities			358,969	379,448
	Total liabilities			663,363	586,362
	Net assets			16,426,137	17,676,308

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2015

11.	INVESTMENT IN ASSOCIATE ENTITY (continued)	INVESTMENT IN ASSOCIATE ENTITY (continued)	INVESTMENT IN ASSOCIATE ENTITY (continued)
					2015	2014
	Lease commitments				$	$
	Not longer than one year				56,035	73,333
	Longer than one year but not longer than five		years		32,083	-
					88,118	73,333
12.	PROPERTY, PLANT AND EQUIPMENT
					Accumulated
			Cost	Revaluation	Depreciation	Total
	2015		$	$	$	$
	Freehold land		1,117,889	623,775	-	1,741,664
	Buildings		124,867	-	(55,808)	69,059
	Plant and equipment		1,380,646	-	(1,180,617)	200,029
	Leasehold improvements		-	-	-	-
			2,623,402	623,775	(1,236,425)	2,010,752
	2014
	Freehold land		1,117,889	224,141	-	1,342,030
	Buildings		117,876	-	(50,209)	67,667
	Plant and equipment		1,381,844	-	(1,128,451)	253,393
	Leasehold improvements		5,285	-	(1,292)	3,993
			2,622,894	224,141	(1,179,952)	1,667,083
	Movements in carrying amounts
		Opening	Revaluation	Disposal/	Depreciation	Closing
		balance	/Additions	Write offs	expense	balance
	2015	$	$	$	$	$
	Freehold land	1,342,030	399,634	-	-	1,741,664
	Buildings	67,667	6,992	-	(5,600)	69,059
	Plant and equipment	253,393	2,076	(221)	(55,219)	200,029
	Leasehold improvements	3,993		(3,424)	(569)	-
		1,667,083	408,702	(3,645)	(61,388)	2,010,752
	2014
	Freehold land	1,335,355	6,675	-	-	1,342,030
	Buildings	73,153	-	-	(5,486)	67,667
	Plant and equipment	316,372	32,180	(24,661)	(70,498)	253,393
	Leasehold improvements	5,358	4,149	(4,884)	(630)	3,993
		1,730,238	43,004	(29,545)	(76,614)	1,667,083

Land was valued by an independent qualified valuer (a Certified Practising Valuer and Associate Member of the Australian Property Institute) as at 30 June 2015. The revaluation gain of $138,071 has been recognised in the Statement of Profit or Loss and Other Comprehensive Income ($101,296) and the Asset Revaluation Reserve ($298,338; refer to Note 19).

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30 JUNE 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2015

13. OLIVE TREES

OLIVE TREES Olive trees - at cost Revaluation	2015 2014 $ $ 300,000 300,000 (234,500) (234,500)
	65,500 65,500

There are approximately 64,500 16 year old olive trees on Orion's 143 hectare Olive Grove located in Gingin, Western Australia. The fair value of the trees is at the Directors' valuation having regard to, amongst other matters, replacement cost and the trees commercial production qualities.

14. INTANGIBLE ASSETS

INTANGIBLE ASSETS 2014 At cost Revaluation/(Impairment) Movements in Carrying Amounts At 1 July 2013 Disposal At 30 June 2014	Brand name Total $ $ - - - -
	- -
	74,996 74,996 (74,996) (74,996)
	- -

The Brand Name pertains to the 'Dandaragan Estate' Olive Oil brand. The Consolidated Entity sold the brand name, equipment and oil inventory a going concern on 30 June 2014 (Refer to Note 4).

15. TRADE AND OTHER PAYABLES

TRADE AND OTHER PAYABLES
Current Trade payables Dividend payable GST payable Other payables and accrued expenses	2015 2014 $ $ 26,427 32,500 28,302 28,302 17,100 17,533 90,128 87,425
	161,957 165,760

Risk exposure

The Consolidated Entity’s exposure to risks arising from current payables is set out in Note 24.

16. PROVISIONS Current Employee benefits - annual leave Employee benefits - long service leave	2015 2014 $ $ 19,316 36,196 97,694 81,161
	117,010 117,357

Amounts not expected to be settled within 12 months

The provision for annual leave and long service leave is presented as current since the Consolidated Entity does not have an unconditional right to defer settlement for any of these employee benefits. Long service leave covers all unconditional entitlements where employees have completed the required period of service and also where employees are entitled to pro-rata payments in certain circumstances.

Based on past experience, the employees have never taken the full amount of long service leave or require payment within the next 12 months. The following amounts reflect leave that is not expected to be taken or paid within the next 12 months:

Leave obligations expected to be settled after 12 months	2015 2014 $ $ 97,694 81,161

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2015

17. DEFERRED TAX

17.	DEFERRED TAX
				2015	2014
	Deferred tax assets			$	$
	Employee benefits & accruals			53,890	60,452
	Fair value losses			162,484	38,205
				216,374	98,657
	Deferred tax liabilities
	Fair value gains			216,374	97,631
	Other			-	1,026
				216,374	98,657
			Employee	Fair value
	(a) Movements - deferred tax assets		benefits	losses	Total
			$	$	$
	At 1 July 2013		73,073	21,936	95,009
	Credited/(charged) to the profit and loss		(12,621)	16,269	3,648
	At 30 June 2014		60,452	38,205	98,657
	At 1 July 2014		60,452	38,205	98,657
	Credited/(charged) to the profit and loss		(6,562)	124,279	117,717
	At 30 June 2015		53,890	162,484	216,374
			Fair value
	(b) Movements - deferred tax liabilities		gains	Other	Total
			$	$	$
	At 1 July 2013		90,131	4,878	95,009
	Charged/(Credited) to the profit and loss		7,500	(3,852)	3,648
	At 30 June 2014		97,631	1,026	98,657
	At 1 July 2014		97,631	1,026	98,657
	Charged/(Credited) to the profit and loss		29,242	(1,026)	28,216
	Charged to equity		89,501	-	89,501
	At 30 June 2015		216,374	-	216,374
18.	ISSUED CAPITAL	2015	2014	2015	2014
		Number	Number	$	$
	Fully paid ordinary shares	28,817,316	28,817,316	6,029,170	6,029,170
	Partly paid ordinary shares	9,000,000	9,000,000	239,275	239,275
				6,268,445	6,268,445
		Date of issue	Number	Issue price
	Movement in fully paid ordinary shares		of shares	$	$
	At 1 July 2013		28,404,879		5,887,927
	Equal access share buy-back - refer (b)	05-Feb-14	(587,563)		(58,757)
	Issue of shares	30-Jun-14	1,000,000	0.20	200,000
	At 30 June 2014		28,817,316		6,029,170
	At 1 July 2014		28,817,316		6,029,170
	At 30 June 2015		28,817,316		6,029,170

ANNUAL REPORT | 33

QUESTE COMMUNICATIONS LTD A.B.N. 58 081 688 164

30 JUNE 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2015

18.	ISSUED CAPITAL (continued)	Date of issue	Number	Issue price
			of shares	$	$
	Movement in partly paid ordinary shares
	At 1 July 2013		20,000,000		304,500
	Equal access share buy-back - refer (b)	05-Feb-14	(10,000,000)		(50,000)
	Call on partly paid shares - refer (c)		-		184,775
	Partly paid shares cancelled		(1,000,000)		(200,000)
	At 30 June 2014		9,000,000		239,275
	At 1 July 2014		9,000,000		239,275
	At 30 June 2015		9,000,000		239,275

(a) Ordinary shares

At any meeting, each shareholder present in person or by proxy, attorney, or representative has one vote for each fully paid ordinary share held either upon a show of hands or by a poll. Holders of partly paid ordinary shares have a fraction of a vote for each partly paid share held, with the fractional vote of each share being equivalent to the proportion of the total amount paid and payable (excluding amounts credited) that has actually been paid (not credited) for each share. Amounts paid in advance of a call are ignored when calculating proportions. The holder of a partly paid ordinary share is not entitled to vote at a meeting in respect of those shares on which calls are outstanding.

The profits of the Consolidated Entity, which the Directors may from time to time determine to distribute to shareholders by way of dividends, will be divisible amongst the shareholders in proportion to the amounts paid on the shares. An amount paid in advance of a call is not to be included as an amount paid on a share for the purposes of calculating an entitlement to dividends.

(b) Equal access share buy-back

On 21 January 2014, the Company's Off-Market Equal Access Share Buy-Back (approved by shareholders at the AGM held on 28 November 2013) ( Buy-Back ) closed with the following shares being bought-back and cancelled:

• (i) 587,563 fully paid ordinary shares were bought back for 10 cents per share at a cost of $58,756; and

• (ii) 10,000,000 partly paid ordinary shares were bought back for 0.5 cent per share at a total cost of $50,000,

with the total cost of the Buy-Back being $108,756.

(c) Call on partly paid ordinary shares

On 27 June 2014, there was a conversion of 1,000,000 partly paid shares into fully paid shares upon payment of a call made by the Company in relation to 100% of the outstanding balance (being $0.184775 each or $184,775 in total) due and payable in respect of these 1,000,000 partly paid shares.

(d) Capital risk management

The Company's objectives when managing its capital are to safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders and to maintain a capital structure balancing the interests of all shareholders.

The Board will consider capital management initiatives as is appropriate and in the best interests of the Company and shareholders from time to time, including undertaking capital raisings, share Buy-backs, capital reductions and the payment of dividends.

ANNUAL REPORT | 34

QUESTE COMMUNICATIONS LTD A.B.N. 58 081 688 164

30 JUNE 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2015

19. RESERVES Option premium reserve Asset revaluation reserve Revaluations of freehold land Deferred tax on revaluations Non-controlling interest Other reserve Dilution movement Non-controlling Interest	2015 2014 $ $ 2,138,012 2,138,012
	623,775 325,437 (187,132) (97,631) (178,749) (93,638)
	257,894 134,168
	949,247 923,922 (144,745) (89,870)
	804,502 834,052
	3,200,408 3,106,232

The movement in the Asset Revaluation Reserve relates to the revaluation of the olive grove land from $1,342,030 to $1,741,664 (Note 12), as assessed by an independent qualified valuer (a Certified Practising Valuer and Associate Member of the Australian Property Institute) as at 30 June 2015.

Other reserve relates to the gain the Company generated from increasing its shareholding interest in OEQ by 6.48% (30 June 2014: 6.32%) as a consequence of OEQ cancelling a total of 1,953,861 (30 June 2014: 1,908,861) shares bought-back pursuant to an on-market share buy-back at a cost of $519,293 (30 June 2014: $508,798). This reserve is also used to record the differences which may arise as a result of transactions with non-controlling interests that do not result in a loss of control.

20. NON-CONTROLLING INTEREST Issued capital Asset revaluation reserve Other reserve Accumulated losses	2015 2014 $ $ 7,718,615 7,754,435 178,749 93,638 144,745 89,870 (4,729,010) (4,417,289)
	3,313,099 3,520,654

The non-controlling interest is a 40.94% (2014: 41.10%) equity holding in Orion Equities Limited (not held by the Company).

ANNUAL REPORT | 35

QUESTE COMMUNICATIONS LTD A.B.N. 58 081 688 164

30 JUNE 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2015

21. PARENT ENTITY INFORMATION

The following information provided relates to the Company, Queste Communications Ltd, as at 30 June 2015. The information presented below has been prepared using accounting policies outlined in Note 1.

Statement of financial position Current assets Non current assets Total assets Current liabilities Total liabilities Net assets Issued capital Reserves Available for sale reserve Accumulated losses Equity Statement of profit or loss and other comprehensive income Loss for the year Other comprehensive income Total comprehensive loss for the year	2015 2014 $ $ 500,663 823,515 2,312,344 3,120,715
	2,813,007 3,944,230
	123,017 252,030
	123,017 252,030
	2,689,990 3,692,200
	6,268,445 6,268,445 2,138,012 2,138,012 - (500,499) (5,716,467) (4,213,758)
	2,689,990 3,692,200
	(1,502,709) (418,389) - -
	(1,502,709) (418,389)

(a) Related Party Transaction

The Company has control of Orion Equities Limited (Orion) as it holds 59.06% (9,367,653 shares) of Orion's issued capital (30 June 2014: 58.90% and 9,367,653 shares). During the year there were transactions between the Company, Orion and Associate Entity, Bentley Capital Limited (ASX Code: BEL), pursuant to shared office and administration expense arrangements. There were no outstanding amounts at the reporting date.

Bentley Capital Limited Dividends Received Return of Capital Received (b) Lease commitments Note Not longer than one year 28 Longer than one year but not longer than five years	2015 2014 $ $ 26,109 17,406 - 17,406 50,941 73,333 29,167 -
	80,108 73,333

22. INTEREST IN SUBSIDIARY

The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiary with non-controlling interest in accordance with the accounting policy described in Note 1:

Ownership Interest		Parent		Non-Controlling	Interest
	Incorporated	2015	2014	2015	2014
Orion Equities Limited	Australia	59.06%	58.90%	40.94%	41.10%

The Company's interest in OEQ increased during the financial year as a consequence of OEQ cancelling 45,000 shares bought-back pursuant to on-market share buy-backs.

ANNUAL REPORT | 36

QUESTE COMMUNICATIONS LTD A.B.N. 58 081 688 164

30 JUNE 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2015

22. INTEREST IN SUBSIDIARY (continued)

Summarised financial information of the subsidiary with non-controlling interests that are material to the consolidated entity are set out below:

Revenue and other income Expenses Loss before income tax Income tax benefit Loss for the year from continuing operations Loss for the year from discontinuing operations Loss after income tax Other comprehensive income Total comprehensive loss for the year Summarised Statement of Financial Position Current assets Non-current assets Total Assets Current liabilities Non-current liabilities Total Liabilities Net Assets Statement of cash flows Net cash from operating activities Net cash used in investing activities Net cash used in financing activities Net increase/(decrease) in cash and cash equivalents Other financial information Profit/(Loss) attributable to non-controlling interest Accumulated non-controlling interest at the end of the year Summarised statement of profit or loss and other comprehensive income	2015 2014 $ $ 303,057 324,071 (1,062,948) (1,003,385)
	(759,891) (679,314) 89,501 -
	(670,390) (679,314) - (110,855)
	(670,390) (790,169) 208,837 -
	(461,553) (790,169)
	1,313,988 1,661,885 7,114,399 7,184,035
	8,428,387 8,845,920
	155,862 182,171 179,424 98,600
	335,286 280,771
	8,093,101 8,565,149
	(544,856) (772,640) 94,468 187,500 (10,495) (508,798)
	(460,883) (1,093,938)
	(311,722) 331,184 3,313,099 3,520,654

23. SEGMENT INFORMATION

The operating segments are reported in a manner consistent with the internal reporting provided to the "Chief Operating Decision Maker". The "Chief Operating Decision Maker", who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors.

The Board has considered the business and geographical perspectives of the operating results and determined that the Consolidated Entity operates only within Australia, with the main segments being Investments and Olive Grove. Corporate items are mainly comprised of corporate assets, office expenses and income tax assets and liabilities.

ANNUAL REPORT | 37

QUESTE COMMUNICATIONS LTD A.B.N. 58 081 688 164

30 JUNE 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2015

23. SEGMENT INFORMATION (continued)

2015 Segment revenues Revenue Other Total segment revenues Personnel expenses Finance expenses Administration expenses Depreciation expenses Other expenses Total segment profit/(loss) Segment assets Cash Financial assets Property held for development or resale Investment in associate Property, plant and equipment Other assets Total segment assets Segment liabilities 2014 Segment revenues Revenue Other Total segment revenues Personnel expenses Finance expenses Administration expenses Depreciation expenses Other expenses Total segment profit/(loss) 2014 Segment assets Cash Financial assets Property held for development or resale Investment in associate Property, plant and equipment Other assets Total segment assets Segment liabilities	Investments Olive grove Corporate Total $ $ $ $ 80,289 - 4,353 84,642 142,374 101,296 - 243,670
	222,663 101,296 4,353 328,312 - 2,811 792,986 795,797 - 313 4,572 4,885 - 3,508 186,057 189,565 - 51,602 13,431 65,033 236,999 13,574 167,871 418,444
	(14,336) 29,488 (1,160,564) (1,145,412)
	- 5,632 264,173 269,805 1,523,346 - - 1,523,346 - 1,350,000 - - 1,350,000 3,705,212 - - 3,705,212 - 1,982,430 28,321 2,010,751 - 67,785 292,798 360,583
	6,578,558 2,055,847 585,292 9,219,697
	- 27,033 468,308 495,341
	44,426 196,511 72,170 313,107 256,768 - - 256,768
	301,194 196,511 72,170 569,875 - 5,257 756,539 761,796 - 995 3,790 4,785 51,453 81,954 184,999 318,406 - 67,526 9,089 76,615 6,651 340,619 270,085 617,355
	243,090 (299,840) (1,152,332) (1,209,082)
	- 11,488 1,158,131 1,169,619 1,172,419 - - 1,172,419 1,490,000 - - 1,490,000 4,119,071 - - 4,119,071 - 1,627,406 39,677 1,667,083 - 199,788 145,718 345,506
	6,781,490 1,838,682 1,343,526 9,963,698
	- 29,213 352,561 381,774

ANNUAL REPORT | 38

QUESTE COMMUNICATIONS LTD A.B.N. 58 081 688 164

30 JUNE 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2015

24. FINANCIAL RISK MANAGEMENT

The Consolidated Entity's financial instruments consist of deposits with banks, accounts receivable and payable, investments in listed securities, and other unlisted securities. The principal activity of the Consolidated Entity is the management of these investments - "financial assets at fair value" (refer to Note 7). The Consolidated Entity's investments are subject to market (which includes interest rate and price risk), credit and liquidity risks.

The Board of Directors is responsible for the overall internal control framework (which includes risk management) but no cost-effective internal control system will preclude all errors and irregularities. The system is based, in part, on the appointment of suitably qualified management personnel. The effectiveness of the system is continually reviewed by management and at least annually by the Board.

The financial receivables and payables of the Consolidated Entity in the table below are due or payable within 30 days. The financial investments are held for trading and are realised at the discretion of the Board of Directors.

The Consolidated Entity holds the following financial instruments:

Financial assets Note Cash and cash equivalents 6 Financial assets at fair value through profit or loss 7 Trade and other receivables 8 Financial liabilities Trade and other payables 15 Net financial assets	2015 2014 $ $ 269,805 1,169,619 1,523,346 1,172,419 13,171 154,771
	1,806,322 2,496,809
	(161,957) (165,760)
	(161,957) (165,760)
	1,644,365 2,331,049

(a) Market risk

• (i) Price risk

The Consolidated Entity is exposed to equity securities price risk. This arises from investments held by the Consolidated Entity and classified in the Statement of Financial Position at fair value through profit or loss. The Consolidated Entity is not exposed to commodity price risk, save where this has an indirect impact via market risk and equity securities price risk.

The value of a financial instrument will fluctuate as a result of changes in market prices, whether those changes are caused by factors specific to the individual instrument or its issuer or factors affecting all instruments in the market. By its nature as an investment company, the Consolidated Entity will always be subject to market risk as it invests its capital in securities that are not risk free - the market price of these securities can and will fluctuate. The Consolidated Entity does not manage this risk through entering into derivative contracts, futures, options or swaps.

Equity price risk is minimised through ensuring that investment activities are undertaken in accordance with Board established mandate limits and investment strategies.

The Consolidated Entity has performed a sensitivity analysis on its exposure to market price risk at balance date. The analysis demonstrates the effect on the current year results and equity which could result from a change in these risks. The ASX All Ordinaries Accumulation Index was utilised as the benchmark for the unlisted and listed share investments which are financial assets available-for-sale or at fair value through profit or loss.

ANNUAL REPORT | 39

QUESTE COMMUNICATIONS LTD A.B.N. 58 081 688 164

30 JUNE 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2015

24. FINANCIAL RISK MANAGEMENT (continued)

(i)	Price risk (continued)	Impact on		Impact on other components	Impact on other components
		post-tax profit		components of equity
	ASX All Ordinaries	2015	2014	2015	2014
	Accumulation Index	$	$	$	$
	Increase 15%	154,669	92,381	154,669	92,381
	Decrease 15%	(154,669)	(92,381)	(154,669)	(92,381)

(ii) Interest rate risk

Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. The Consolidated Entity's exposure to market risk for changes in interest rates relate primarily to investments held in interest bearing instruments. The average interest rate for the year for the table below is 1.85% (2014: 3.35%). The revenue exposure is immaterial in terms of the possible impact on profit or loss or total equity.

Cash at bank and in hand Short-term deposits	2015 2014 $ $ 269,805 1,119,619 - 50,000
	269,805 1,169,619

(b) Credit risk

Credit risk refers to the risk that a counterparty under a financial instrument will default (in whole or in part) on its contractual obligations resulting in financial loss to the Consolidated Entity. Credit risk arises from cash and cash equivalents and deposits with banks and financial institutions, including outstanding receivables and committed transactions. Concentrations of credit risk are minimised primarily by undertaking appropriate due diligence on potential investments, carrying out all market transactions through approved brokers, settling non-market transactions with the involvement of suitably qualified legal and accounting personnel (both internal and external), and obtaining sufficient collateral or other security (where appropriate) as a means of mitigating the risk of financial loss from defaults. The Consolidated Entity's business activities do not necessitate the requirement for collateral as a means of mitigating the risk of financial loss from defaults.

The credit quality of the financial assets are neither past due nor impaired and can be assessed by reference to external credit ratings (if available with Standard & Poor's) or to historical information about counterparty default rates. The maximum exposure to credit risk at reporting date is the carrying amount of the financial assets as summarised below:

Cash and cash equivalents AA- A A- Trade receivables (due within 30 days) No external credit rating available	2015 2014 $ $ 265,536 1,166,007 4,269 - - 1,623
	269,805 1,167,630
	13,171 154,771

The Consolidated Entity measures credit risk on a fair value basis. The carrying amount of financial assets recorded in the financial statements, net any provision for losses, represents the Consolidated Entity's maximum exposure to credit risk.

Liquidity risk is the risk that the Consolidated Entity will encounter difficulty in meeting obligations associated with financial liabilities. The Consolidated Entity has no borrowings. The Consolidated Entity's non-cash investments can be realised to meet trade and other payables arising in the normal course of business. The financial liabilities disclosed in the above table have a maturity obligation of not more than 30 days.

ANNUAL REPORT | 40

QUESTE COMMUNICATIONS LTD A.B.N. 58 081 688 164

30 JUNE 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2015

24. FINANCIAL RISK MANAGEMENT (continued)

(c) Liquidity risk

Liquidity risk is the risk that the Consolidated Entity will encounter difficulty in meeting obligations associated with financial liabilities. The Consolidated Entity has no borrowings. The Consolidated Entity's non-cash investments can be realised to meet trade and other payables arising in the normal course of business. The financial liabilities disclosed in the above table have a maturity obligation of not more than 30 days.

25. FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS

(a) Fair value hierarchy

AASB 13 requires disclosure of fair value measurements by level of the following fair value measurement hierarchy:

• (i) Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;

• (ii) Level 2: inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); and

• (iii) Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

2015	Level	1	Level	2	Level 3	Total
Financial assets at fair value through		$		$	$	$
profit or loss:
Listed securities at fair value	1,001,185		-		-	1,001,185
Unlisted managed fund at fair value			522,161		-	522,161
Land at independent valuation	-		-		904,664	904,664
Olive trees	-		-		65,500	65,500
Total	1,001,185		522,161		970,164	2,493,510
2014
Financial assets at fair value through
profit or loss:
Listed securities at fair value	672,659		-		-	672,659
Unlisted managed fund at fair value			499,760		-	499,760
Land at independent valuation	-		-		766,593	766,593
Olive trees	-		-		65,500	65,500
Total	672,659		499,760		832,093	2,004,512

There have been no transfers between the levels of the fair value hierarchy during the financial year.

(b) Valuation techniques

The fair value of the listed securities traded in active markets is based on closing bid prices at the end of the reporting period. These investments are included in Level 1.

The fair value of any assets that are not traded in an active market are determined using certain valuation techniques. The valuation techniques maximise the use of observable market data where it is available, or independent valuation and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2. If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.

ANNUAL REPORT | 41

QUESTE COMMUNICATIONS LTD A.B.N. 58 081 688 164

30 JUNE 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2015

25. FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (continued)

The fair value of the unlisted managed fund investment is valued at the audited unit price published by the investment manager and as such this financial instrument is included in Level 2.

At Level 3, the land were valued by an independent qualified valuer (a Certified Practising Valuer and Associate Member of the Australian Property Institute) as at 30 June 2015. These assets have been valued based on similar assets, location and market conditions or Direct Comparison or Comparative Sales Approach. The land value per hectare based on rural land sold in the general location provided a rate. A 4% change would increase or decrease the land's fair value change by $69,500 respectively. There has been no unusual circumstances that may affect the value of the trees.

At Level 3 the olive trees' value was assessed as at 30 June 2015 by the Directors. The fair value of the trees is at the Directors' valuation having regard to, amongst other matters, replacement cost and the trees commercial production qualities. The significant unobservable input is the replacement cost of 16 year old fruiting trees. There are no age limits to the commercial viability of an olive grove. A 1% change in the minimum replacement cost would result in an increase or decrease by $3,500. There has been no unusual circumstances that may affect the value of the property.

The changes in the Level 3 values are explained in Note 12 in relation to the land.

(c) Level 3 assets At 1 July 2013 Addition/(Disposal) At 30 June 2014 Revaluation At 30 June 2015 (d) Fair values of other financial instruments Financial assets Cash and cash equivalents Trade and other receivables Financial liabilities Trade and other payables	Olive Land trees Total $ $ $ 759,918 65,500 825,418 6,675 - 6,675	Olive Land trees Total $ $ $ 759,918 65,500 825,418 6,675 - 6,675
	766,593 138,071	65,500 832,093 - 138,071
	904,664	65,500 970,164
		2015 2014 $ $ 269,805 1,169,619 13,171 154,771
		282,976 1,324,390
		(161,957) (165,760)

Due to their short-term nature, the carrying amounts of cash, current receivables and current payables is assumed to approximate their fair value.

26. KEY MANAGEMENT PERSONNEL (KMP)

Refer to the Remuneration Report contained in the Directors' Report for details of the remuneration paid or payable to each member of the Consolidated Entity's KMP for the year ended 30 June 2015. The total remuneration paid to KMP of the Consolidated Entity during the year is as follows:

Directors Short-term employment benefits Other long-term employment benefits	2015 2014 $ $ 502,680 477,254 2,404 43,149
	505,084 520,403

During the year, the Consolidated Entity received $44,200 rental income from Director, Farooq Khan, pursuant to a standard form residential tenancy agreement in respect of Property Held for Development or Resale (held by Orion subsidiary, Silver Sands Developments Pty Ltd).

ANNUAL REPORT | 42

QUESTE COMMUNICATIONS LTD A.B.N. 58 081 688 164

30 JUNE 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2015

27. AUDITORS' REMUNERATION

During the year the following fees were paid for services provided by the auditor of the parent entity, its related practices and other non-related audit firms:

practices and other non-related audit firms:
BDO Audit (WA) Pty Ltd Audit and review of financial statements Taxation services	2015 2014 $ $ 68,823 59,612 10,408 6,569
	79,231 66,181

The Consolidated Entity may engage BDO on assignments additional to their statutory audit duties where their expertise and experience with the Consolidated Entity are important. These assignments principally relate to taxation advice in relation to the tax notes to the financial statements.

28. COMMITMENTS Not longer than one year Longer than one year but not longer than five years	2015 2014 $ $ 106,976 146,667 61,250 -
	168,226 146,667

On or about 19 May 2015, the Consolidated Entity renewed its non-cancellable operating lease agreement for shared office accommodation. The lease commitment is the Consolidated Entity's share of the lease costs and includes all outgoings (inclusive of GST). The lease is for a further 18 month term expiring on or about 30 January 2017.

29. CONTINGENCIES

(a) Directors' Deeds

The Company has entered into Deeds of Indemnity with each of its Directors indemnifying them against liability incurred in discharging their duties as Directors/Officers of the Consolidated Entity. At the end of the financial period, no claims have been made under any such indemnities and accordingly, it is not possible to quantify the potential financial obligation of the Consolidated Entity under these indemnities.

(b) Tenement Royalties

The Consolidated Entity is entitled to receive a royalty of 2% of gross revenues (exclusive of GST) from any commercial exploitation of any minerals from the Paulsens East (Iron Ore) Project tenements (EL47/1328 and PL47/1170) in Western Australia currently held by Strike Resources Limited (ASX : SRK).

30. EVENTS OCCURRING AFTER THE REPORTING PERIOD

• (a) Associate entity, Bentley Capital Limited (ASX : BEL), has announced its intention to pay a fullyfranked dividend of 0.5 cent per share in September 2015. The Company’s entitlement to such dividend would be $8,703.

No other matter or circumstance has arisen since the end of the financial year that significantly affected, or may significantly affect, the operations of the Consolidated Entity, the results of those operations, or the state of affairs of the Consolidated Entity in future financial years.

ANNUAL REPORT | 43

QUESTE COMMUNICATIONS LTD A.B.N. 58 081 688 164

30 JUNE 2015

DIRECTORS’ DECLARATION

The Directors of the Company declare that:

• (1) The financial statements, Consolidated Statement of Profit or Loss and Other Comprehensive Income, Consolidated Statement of Financial Position, Consolidated Statement of Cash Flows, Consolidated Statement of Changes in Equity, and accompanying notes as set out on pages 16 to 43 are in accordance with the Corporations Act 2001 (Cth) and :

• (a) comply with Australian Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting; and

• (b) give a true and fair view of the Consolidated Entity’s financial position as at 30 June 2015 and of its performance for the year ended on that date;

• (2) In the Directors’ opinion there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable;

• (3) The Directors have been given the declarations required by section 295A of the Corporations Act by the Executive Chairman and Managing Director (the person who performs the Chief Executive Officer function) and the Company Secretary (the person who, in the opinion of the Directors, performs the Chief Financial Officer function); and

• (4) The Company has included in the notes to the Financial Statements an explicit and unreserved statement of compliance with the International Financial Reporting Standards.

This declaration is made in accordance with a resolution of the Directors made pursuant to section 295(5) of the Corporations Act.

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Farooq Khan Chairman

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Victor Ho

Executive Director and Company Secretary

31 August 2015

ANNUAL REPORT | 44

Tel: +61 8 6382 4600 38 Station Street Fax: +61 8 6382 4601 Subiaco, WA 6008 www.bdo.com.au PO Box 700 West Perth WA 6872 Australia

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INDEPENDENT AUDITOR’S REPORT

To the members of Queste Communications Ltd

Report on the Financial Report

We have audited the accompanying financial report of Queste Communications Ltd, which comprises the consolidated statement of financial position as at 30 June 2015, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration of the consolidated entity comprising the company and the entities it controlled at the year’s end or from time to time during the financial year.

Directors’ Responsibility for the Financial Report

The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In Note 1, the directors also state, in accordance with Accounting Standard AASB 101 Presentation of Financial Stat ements, that the financial statements comply with International Financial Reporting Standards .

Auditor’s Responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation, other than for the acts or omissions of financial services licensees.

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Independence

In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001 . We confirm that the independence declaration required by the Corporations Act 2001 , which has been given to the directors of Queste Communications Ltd, would be in the same terms if given to the directors as at the time of this auditor’s report.

Opinion

In our opinion:

• (a) the financial report of Queste Communications Ltd is in accordance with the Corporations Act 2001 , including:

• (i) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2015 and of its performance for the year ended on that date; and

• (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001 ; and

• (b) the financial report also complies with International Financial Reporting Standards as disclosed in Note 1.

Report on the Remuneration Report

We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2015. The directors of the company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001 . Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.

Opinion

In our opinion, the Remuneration Report of Queste Communications Ltd for the year ended 30 June 2015 complies with section 300A of the Corporations Act 2001 .

BDO Audit (WA) Pty Ltd

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Wayne Basford

Director

Perth, 31 August 2015

QUESTE COMMUNICATIONS LTD A.B.N. 58 081 688 164

30 JUNE 2015

ADDITIONAL ASX INFORMATION as at 8 October 2015

CORPORATE GOVERNANCE STATEMENT

The Company has adopted the Corporate Governance Principles and Recommendations (3[rd] Edition, March 2014) issued by the ASX Corporate Governance Council in respect of the financial year ended 30 June 2015.

Pursuant to ASX Listing Rule 4.10.3, the Company’s 2015 Corporate Governance Statement (dated on or about 13 October 2015) and ASX Appendix 4G (Key to Disclosures of Corporate Governance Principles and Recommendations) can be found at the following URL on the Company’s Internet website: - http://queste.com.au/corporate governance

DISTRIBUTION OF LISTED ORDINARY FULLY PAID SHARES

Spread	of	Holdings	Number of Holders	Number of Units	% of Total Issue Capital
1	-	1,000	11	7,227	0.025%
1,001	-	5,000	49	139,553	0.484%
5,001	-	10,000	59	550,425	1.910%
10,001	-	100,000	98	2,727,340	9.464%
100,001	-	and over	24	25,392,771	88.116%
Total			241	28,817,316	100.00%

UNMARKETABLE PARCELS

Spread	of	Holdings	Number of Holders	Number of Units	% of Total Issue Capital
1	-	6,249	66	182,380	0.633%
Total			66	182,380	0.63%

An unmarketable parcel is considered, for the purposes of the above table, to be a shareholding of 6,249 shares or less, being a parcel with a value of $500 or less in total, based upon the Company’s closing share price on 8 October 2015 of $0.08 per share.

DISTRIBUTION OF UNLISTED PARTLY PAID ORDINARY SHARES

Name	No. of Partly Paid Shares	% Voting Power*
Chi TungInvestments Ltd	9,000,000	2.322%

These 9,000,000 ordinary shares were issued at a price of 20 cents per share and have been partly paid to 1.5225 cents each and have an outstanding amount payable of 18.4775 cents per share.

ANNUAL REPORT | 47

QUESTE COMMUNICATIONS LTD A.B.N. 58 081 688 164

30 JUNE 2015

ADDITIONAL ASX INFORMATION as at 8 October 2015

SUBSTANTIAL SHAREHOLDERS

Substantial Shareholders	Registered Shareholder	Shares /	%Voting Power6
		Voting Shares
Azhar Chaudhri, Renmuir Holdings Limited and Chi Tung Investments Ltd1	RENMUIR HOLDINGS LTD CHI TUNG INVESTMENTS LTD MR AZHAR CHAUDHRI CHI TUNG INVESTMENTS LTD	3,277,780 2,050,000 1,436,001 685,1252	25.25%1
Bell IXL Investments Limited and associates3	CLEOD PTY LTD CELLANTE SECURITIES PTY LIMITED BELL IXL INVESTMENTS LIMITED	2,748,490 2,599,747 2,053,282	25.09%3
Farooq Khan andIslandAustraliaPtyLtd4	ISLAND AUSTRALIA PTY LTD FAROOQ KHAN	3,668,577 2,231,367	20.00%4
Manar Nominees Pty Ltd and	MANAR NOMINEES PTY LTD	1,825,663	6.80%5
ZelwerSuperannuation PtyLtd5	ZELWER SUPERANNUATION PTY LTD	180,500

Notes:

• (1) Based on the substantial shareholding notice filed by Azhar Chaudhri and associates dated 1 July 2014 .

• (2) Voting shares attributable to 9,000,000 partly paid ordinary shares (issued at a price of 20 cents per share) which have been partly paid to 1.5225 cent each.

• (3) Based on the substantial shareholding notice filed by Bell IXL Investments Limited dated 28 January 2014 (updated to reflect current percentage voting power)

• (4) Based on the substantial shareholding notice filed by Farooq Khan and associate dated 23 January 2014 (updated to reflect current percentage voting power)

• (5) Based on the substantial shareholding notice filed by Manar Nominees Pty Ltd dated 29 December 2003 (updated to reflect current percentage voting power)

• (6) Total Voting Power is equivalent to the total number of fully paid ordinary shares on issue (28,817,316) plus the equivalent voting shares associated with the partly paid shares on issue based on the amount paid up per partly paid share (685,125).

• (7) Movements of less than 1% in voting power are not required to be disclosed to ASX via an update substantial shareholding notice and accordingly, there may be variances between the shareholdings recorded in the table above and the most recent substantial shareholding notices lodged on ASX.

VOTING RIGHTS

Subject to any rights or restrictions for the time being attached to any class or classes of shares (at present there are none), at meetings of shareholders of the Company:

• (1) Each shareholder entitled to vote may vote in person or by proxy or by power of attorney or, in the case of a shareholder which is a corporation, by representative;

• (2) Every person who is present in the capacity of shareholder or the representative of a corporate shareholder shall, on a show of hands, have one vote;

• (3) Every shareholder who is present in person, by proxy, by power of attorney or by corporate representative shall, on a poll, have one vote in respect of every fully paid share held by him; and

• (4) The Company’s partly paid shares have a proportional voting entitlement in accordance with the amount paid up for that share.

ANNUAL REPORT | 48

QUESTE COMMUNICATIONS LTD A.B.N. 58 081 688 164

30 JUNE 2015

ADDITIONAL ASX INFORMATION as at 8 October 2015

TOP 20 ORDINARY FULLY PAID SHAREHOLDERS

	Total % Issued % Voting
Rank Shareholder	Shares Held Shares Capital Power*
1 CLEOD PTY LTD BELL IXL INVESTMENTS LIMITED CELLANTE SECURITIES PTY LIMITED 2 RENMUIR HOLDINGS LTD CHI TUNG INVESTMENTS LTD MR AZHAR CHAUDHRI 3 ISLAND AUSTRALIA PTY LTD FAROOQ KHAN 4 MANAR NOMINEES PTY LTD ZELWER SUPERANNUATION PTY LTD 5 COWOSCO CAPITAL PTY LTD	2,748,490 2,599,747 2,053,282 Sub-total 7,401,519 25.68% 25.09% 3,277,780 2,050,000 1,436,001 Sub-total 6,763,781 23.47% 22.93% 3,668,577 2,231,367 Sub-total 5,899,944 20.47% 20.00% 1,825,663 180,500 Sub-total 2,006,163 6.96% 6.80% 1,150,000 3.99% 3.90%
6 MR DONALD GORDON MACKENZIE & MRS GWENNETH EDNA MACKENZIE 7 MS ROSANNA DE CAMPO 8 GLENVIEW SERVICES PTY LTD 9 GIBSON KILLER PTY LTD 10 MR AYUB KHAN	466,003 1.62% 1.58% 268,100 0.93% 0.91% 240,000 0.83% 0.81% 220,000 0.76% 0.75% 215,000 0.75% 0.73%
11 MRS AFIA KHAN 12 MR SIMON KENNETH CATO ROSEMONT ASSET PTY LTD 13 TOMATO 2 PTY LTD 14 MR JOHN CHENG-HSIANG YANG & MS PEGA PING PING MOK 15 MR ANTHONY NEALE KILLER & MRS SANDRA MARIE KILLER	215,000 0.75% 0.73% 118,000 75,000 Sub-total 193,000 0.67% 0.65% 185,019 0.64% 0.63% 136,125 0.47% 0.46% 130,000 0.45% 0.44%
16 MR EUGENE RODRIGUEZ 17 MR KEITH FRANCIS OATES & MRS LINDA ANN OATES 18 MRS MARY THERESE CAMILLERI 19 DR SIEW NAM UN 20 CITICORP NOMINEES PY LIMITED	110,000 0.38% 0.37% 100,000 0.35% 0.34% 100,000 0.35% 0.34% 87,500 0.30% 0.30% 85,296 0.30% 0.29%
Total	25,972,450 90.13% 88.03%

• % Voting Power is equivalent to the total number of fully paid ordinary shares on issue (28,817,316) plus the equivalent voting shares associated with the partly paid shares on issue based on the amount paid up per partly paid share (685,125).

ANNUAL REPORT | 49

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ASX Code: QUE

Queste Communications Ltd A.B.N. 58 081 688 164

PRINCIPAL & REGISTERED OFFICE:

SHARE REGISTRY:

Advanced Share Registry Limited Level 2, 23 Ventnor Avenue 110 Stirling Highway West Perth , Western Australia 6005 Nedlands, Western Australia 6009

PO Box 1156, Nedlands Western Australia 6909

T | (08) 9214 9777 F | (08) 9214 9701 E | info@queste.com.au W| www.queste.com.au

T | (08) 9389 8033 F | (08) 9262 3723 E | admin@advancedshare.com.au W| www.advancedshare.com.au

Level 6, 225 Clarence Street Sydney, New South Wales 2000

PO Box Q1736, Queen Victoria Building New South Wales 1230

T | (02) 8096 3502