QUESTE COMMUNICATIONS LIMITED — Interim / Quarterly Report 2010

Feb 10, 2010

January 2010 Monthly Cash Flow Report y

Name of entity

QUESTE COMMUNICATIONS LTD and controlled entities

ACN or ARBN		Month Ended
081 688 164		31 January 2010
Consolidated statement of cash flows		Company		Consolidated
		Current Month	Year to Date	Current Month	Year to Date
		Jan 2010	7 months	Jan 2010	7 months
		$' 000	$' 000	$' 000	$' 000
	Cash flows related to operating activities
1 11.1	Receipts from customersReceipts from	--	--	7575	775775
1.2	Payments for
	(a) staff costs	(28)	(220)	(58)	(572)
	(b) advertising and marketing	-	-	-	-
	(c) research and development	-	-	-	-
	(d) leased assets	-	-	-	-
	(e) other working capital	(19)	(171)	(85)	(1,131)
1.3	Dividends received	17	17	17	223
1.4	Interest and other items of a similar nature received	9	43	10	48
1.5	Interest and other costs of finance paid	-	-	-	-
1.6	Income taxes (paid)/refund	-	-	-	-
1.7	Other (provide details if material)Other (provide details if
	Inventory - Olive Oils (Packaged) (Acquired)	-	-	-	(142)
	Net operating cash flows	(21)	(331)	(41)	(799)

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

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 Month	Year to Date	Current Month	Year to Date
		Jan 2010	7 months	Jan 2010	7 months
		$' 000	$' 000	$' 000	$' 000
1 81.8	Net operating cash flows (carried forward)Net operating cash flows (carried	(21)(21)	(331)(331)	(41)(41)	(799)(799)
	Cash flows related to investing activities
1.9	Payment for acquisition of:
	(a)businesses (item 5)	-	-	-	-
	(b)equity investments	-	(554)	-	(554)
	(c)intellectual propertyintellectual	-	--	--	(100)
	(d)physical non-current assets	-	-	-	(8)
	(e)other non-current assets	-	-	-	-
1.10	Proceeds from disposal of:				-
	(a)businesses (item 5)	-	-	-	-
	(b)equity investments	-	58	-	1,108
	(c)intellectualintellectual property roperty	-	-	-	-
	(d)physical non-current assets	-	-	-	-
	(e)other non-current assets	-	-	-	-
1.11	Loans to other entities	-	(350)	-	-
1.12	Loans repaid by other entities	-	350	-	-
1.13	Other (provide details if material)	-	-	-	-
	Net investing cash flows	-	(496)	-	446
1.14	Total operating and investing cash flows	(21)	(827)	(41)	(353)
	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 paid	-	-	-	-
1.20	Other (provide details if material)	-	-	-	-
	Net financing cash flows	-	-	-	-
	Net increase (decrease) in cash heldNet increase (decrease) in cash	(21)	(827)	(41)	(353)
1.21	Cash at beginning of month/year to date	2,386	3,192	3,122	3,434
1.22	Exchange rate adjustments to item 1.20	-	-		-
1.23	Cash at end of month	2,365	2,365	3,081	3,081

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
		Jan 2010$' 000
1.24	Aggregate amount of payments to the parties included in item 1.2	(37)
1.25	Aggregate amount of loans to the parties included in item 1.11	-

• 1.26 Explanation necessary for an understanding of the transactions
  • Payments for Staff costs (in Item 1.2) includes: (1) $11 539 $11,539 - Salaries and fees paid - by the Company to Directors; (2) $25,817 - Salaries and fees paid by controlled entity, Orion Equities Limited (OEQ), 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 Financing facilities

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	-	-

3.2 Credit standby arrangements - -

Disposals

Reconciliation of cashReconciliation of cash at the end of the month (as shownin the consolidated statement of cash flows) to the relateditems in the accounts is as follows		Company		Consolidated
		CurrentPreviousMonthMonth$' 000$' 000		CurrentMonth$' 000	PreviousMonth$' 000
4.1	Cash on hand and at bank	740	160	1,456	896
4.2	Deposits at call	1,625	2,226	1,625	2,226
4.3	Bank overdraft	-	-	-	-
4.4	Other (Bank Bills)	-	-	-	-
	Total: cash at end of month (item 1.22)	2,365	2,386	3,081	3,122
		-	-	-	-

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

• 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.

Victor Ho Company Secretary

Date: 11 February 2010

(Item 1.9(a)) (Item 1.10(a))

Acquisitions

Notes:

The Company currently holds the following listed share investments: 31-Jan-10

	No Shares	% Interest	Last Closing Price	Market Value
Shares in Orion Equities Limited (OEQ)	8,558,127	48.04%	$0.520	$4,450,226
Shares (Other)				$495,722
				$4,945,948

The above investments are regarded as liquid assets to supplement the Company's cash reserves.