QUESTE COMMUNICATIONS LIMITED — Interim / Quarterly Report 2008

Sep 12, 2007

August 2007 Monthly Cash Flow Report

Name of entity

QUESTE COMMUNICATIONS LTD and controlled entities

	Month EndedACN or ARBN
	081 688 164			31 August 2007
	Consolidated statement of cash flows		Company		Consolidated
		Current MonthAug 2007$' 000	Year to Date2 month$' 000	Current MonthAug 2007$' 000	Year to Date2 month$' 000
	Cash flows related to operating activities
1.1	Receipts from customers	-	-	-	-
1.2	Payments for
	(a) staff costs	(49)	(84)	(97)	(170)
	(b) advertising and marketing	-	-	-	-
	(c) research and development	-	-	-	-
	(d) leased assets	-	-	-	-
	(e) other working capital	(16)	8	(361)	(620)
1.3	Dividends received	-	-	-	16
1.4	Interest and other items of a similar nature received	16	35	22	48
1.5	Interest and other costs of finance paid	-	-	-	-
1.6	Income taxes paid	-	-	-	(76)
1.7	Other (provide details if material)
	- Professional fees	-	-	-	-
	Net operating cash floNetoperatingcashflowss	(49)	(41)	(436)	(802)

Note:

The Company currently has a 48% interest in ASX listed investment company, Orion Equities Limited ("OEQ").

OEQ is a controlled entity of the Company under the Accounting Standards.

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

		Company		Consolidated
		Current MonthCurrent	Year to DateYear to	Current MonthCurrent	Year to DateYear to
		Aug 2007	2 month	Aug 2007	2 month
		$' 000	$' 000	$' 000	$' 000
1.8	Net operating cash flows (carried forward)	(49)	(41)	(436)	(802)
	Cash flows related to investing activities
1.9	Payment for acquisition of:
	(a)businesses (item 5)	-	-	-	-
	(b)equity investments	-	-	(551)	(551)
	(c)intellectual property	-	-	-	-
	(d)physical non-current assets	-	-	-	(3)
	(e)other non-current assets	-	-	-	-
1 10 .	Proceeds from disposal of:Proceeds from disposal
	(a)businesses (item 5)	-	-	-	-
	(b)equity investments	-	-	130	632
	(c)intellectual property	-	-	-	-
	(d)physical non-current assets	-	-	-	-
	(e)other non-current assets	-	-	-	-
1.11	Loans to other entities	-	-	-	-
1.12	Loans repaid by other entities	-	-	-	-
1.13	Other (provide details if material)	-	-	-	-
	(a)Net income from options	-	-	(1)	(1)
	Net investing cash flows	-	-	(422)	77
1.14	Total operating and investing cash flows	(49)	(41)	(858)	(725)
	Cash flows related to financing activities
1.15	Proceeds from issues of shares, options, etc.	-	-	-	-
1.16	Proceeds from sale of forfeited shares	-	-	-	-
1.17	Proceeds from borrowings	-	-	-	-
1.18	Repayment of borrowings	-	-	-	-
1 19 .	Dividends paidDividends	-	-	-	-
1.20	Other (provide details if material)	-	-	-	-
	Payments in relation to share buy back	-	-	-	-
	Net financing cash flows	-	-	-	-
	Net increase (decrease) in cash held	(49)	(41)	(858)	(725)
1 21 .	Cash at beginning of month/year to dateCash at beginning of month/year to date	3 166,	3 158,	4 944,	4 811,
1.22	Exchange rate adjustments to item 1.20	-	-		-
1.23	Cash at end of month	3,117	3,117	4,086	4,086

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 Month
		Aug 2007
		$' 000
1.24	Aggregate amount of payments to the parties included in item 1.2	(64)
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) $16,358 - Salaries and fees paid by the Company to Directors; (2) $47,822 - Salaries and fees paid by controlled entity, Orion Equities Limited, 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

None

2.2 Details of outlays made by other entities to establish or increase their share in businesses in which the reporting

None.

Financing facilities available

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

		Amt available$' 000	Amount used$' 000
3.1	Loan facilities	-	-
3.2	Credit standby arrangements	-	-

Reconciliation of cashReconciliation of cash at the end of the month (as shown inthe consolidated statement of cash flows) to the related items		Company		Consolidated
		CurrentMonth$' 000	PreviousMonth$' 000	CurrentMonth$' 000	PreviousMonth$' 000
4.1	Cash on hand and at bank	3,092	307	4,061	4,919
4.24.3	Deposits at callpBank overdraft	25	25	25	25
4.4	Other (Bank Bills)	--	-2,834	--	--
	Total: cash at end of month (item 1.22)	3,117	3,166	4,086	4,944
		-	-	-	-

Acquisitions and disposals of business entities

Compliance statement

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

	Date:	13 September 2007
Victor Ho
Company Secretary
Notes:

The Company currently holds the following listed share investments:	11-Sep-07
	No Shares	% Interest	Last Closing Price	Market Value
Shares in Orion Equities Limited (OEQ)	8,558,127	48.04%	$1.260	$10,783,240
Shares in Sofcom Limited (SOF)	6,255,349	14.01%	suspended
				$10 783 240$10,783,240
The above investments are regarded as liquid assets to supplement the Company's cash reserves.

		Acquisitions(Item 1.9(a))	Disposals(Item 1.10(a))
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	-	-