QUESTE COMMUNICATIONS LIMITED — Interim / Quarterly Report 2004

Oct 25, 2004

Appendix 4C

Quarterly Report for entities admitted on the basis of commitments

	Name of entity
	QUESTE COMMUNICATIONS LIMITED and controlled entities
	ACN or ARBN			Quarter Ended
	081 688 164			30 September 2004
	Consolidated statement of cash flows	Company		Consolidated
		Current Quarter	Year to Date	Current Quarter	Year to Date
		Sept 2004	3 months	Sept 2004	3 months
		$'000	$'000	$'000	$'000
	Cash flows related to operating activities
1.1	Receipts from customers
1.2	Payments for
	(a) staff costs	(81)	(81)	(131)	(131)
	(b) advertising and marketing
	(c) research and development
	(d) leased assets
	(e) other working capital	3	3	(135)	(135)
1.3	Dividends received	417	417	21	21
1.4	Interest and other items of a similar nature received	$\overline{2}$	2	176	176
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Other (provide details if material)
	Net operating cash flows	341	341	(69)	(69)

Note:

The Company currently has a 48.817% interest in ASX listed Central Exchange Limited ("CXL").

CXL is a controlled entity of the Company pursuant to Accounting Standard AASB 1024 "Consolidated Accounts."

Therefore, the Consolidated columns in this Quarterlyly Cash Flow Report takes into account the cash flows of the Company and its controlled entities, including CXL.

				Consolidated
		Company
		Current Quarter	Year to Date	Current Quarter	Year to Date
		Sept 2004	3 months	Sept 2004	3 months
		$'000	$'000	$'000	$'000
1.8	Net operating cash flows (carried forward)	341	341	(69)	(69)
	Cash flows related to investing activities
1.9	Payment for acquisition of:
	businesses (item 5)(a)
	(b)equity investments	(469)	(469)	(6, 320)	(6, 320)
	intellectual property(c)
	(d)physical non-current assets
	other non-current assets
	(e)
1.10	Proceeds from disposal of:
	businesses (item 5)(a)
	(b)equity investments	76	76	1,849	1,849
	intellectual property(c)
	(d)physical non-current assets
	other non-current assets(e)
1.11	Loans to other entities
1.12	Loans repaid by other entities
1.13	Other (provide details if material)
	Hedging contracts			13	13
	Net investing cash flows	(393)	(393)	(4, 458)	(4, 458)
1.14	Total operating and investing cash flows	(52)	(52)	(4, 527)	(4, 527)
	Cash flows related to financing activities
1.15	Proceeds from issues of shares, options, etc.			8	8
1.16	Proceeds from sale of forfeited shares
1.17	Proceeds from borrowings
1.18	Repayment of borrowings
1.19	Dividends paid			(404)	(404)
1.20	Other (provide details if material)
	Payments in relation to share buy back			(2)	(2)
	Net financing cash flows			(398)	(398)
	Net increase (decrease) in cash held	(52)	(52)	(4,925)	(4,925)
1.21	Cash at beginning of quarter/year to date	99	99	18,213	18,213
1.22	Exchange rate adjustments to item 1.20
	1.23 Cash at end of quarter	47	47	13,288	13,288

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

		Current Quarter
		Sept 2004
		$000
1.24	Aggregate amount of payments to the parties included in item 1.2	98
1.25	Aggregate amount of loans to the parties included in item 1.11

• 1.26 Explanation necessary for an understanding of the transactions
  • (1) $43,587 Salaries, fees and superannuation paid by the Company to Directors;
  • (2) $53,933 Salaries and superannuation paid by Central Exchange Ltd to its Directors.

Non-cash financing and investing activities

$2.1$ Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

"None.
--------

$2.2$ Details of outlays made by other entities to establish or increase their share in businesses in which the reporting entity has an interest

None.

Financing facilities available

Add notes as necessary for an understanding of the position. (See AASB 1026 paragraph 12.2).

		Amt available	Amount used
		$$^{\circ}000$	$$^{\circ}$ 000
3.1	Loan facilities	$\sim$
3.2	Credit standby arrangements	$\sim$

Disposals

(item $1.10(a)$ )

$\overline{a}$

$\overline{a}$

$\overline{a}$

$\overline{a}$

$\overline{a}$

Reconciliation of cashReconciliation of cash at the end of the month (as shown in		Company		Consolidated
		Current	Previous	Current	Previous
the consolidated statement of cash flows) to the related		Quarter	Quarter	Quarter	Quarter
items in the accounts is as follows		$ 000	$000	$'000	$000
4.1	Cash on hand and at bank	47	99	1,398	1,774
4.2	Deposits at call
4.3	Bank overdraft		$\blacksquare$
4.4	Other (Bank Bills)			11,890	16,439
	Total: cash at end of quarter (item 1.22)	47	99	13,288	18,213

Acquisitions (Item $1.9(a)$ )

$\blacksquare$

$\overline{a}$

$\bar{\phantom{a}}$

$\omega$

$\overline{a}$

Acquisitions and disposals of business entities

• $5.1$ Name of entity
• $5.2$ Place of incorporation or registration
• $5.3$ Consideration for acquisition or disposal
• 5.4 Total net assets
• 5.5 Nature of business

Compliance statement

• This statement has been prepared under accounting policies which comply with accounting standards as defined in the 1 Corporations Law (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.
• $\overline{2}$ This statement does give a true and fair view of the matters disclosed.

Date: 26 October 2004

Victor Ho Company Secretary

Notes:

The Company also currently has the following listed share investments:

	26-Oct-04
	No Shares	% Interest	Last Closing Price	Value
Shares in Central Exchange Ltd (CXL)	8,303,779	48.22%	$0.61	$5,065,305
Shares in Altera Capital Ltd (AEA)	10.699.428	17.25%	suspended
Shares in Other Listed Securities (liquid	various
investments)			various	$2,583,890