QUESTE COMMUNICATIONS LIMITED — Interim / Quarterly Report 2011

Nov 9, 2011

October 2011 Monthly p Cash Flow Report

	Name of entity
--	----------------	--	--

QUESTE COMMUNICATIONS LTD and controlled entity

ACN or ARBN		Month Ended
	081 688 164	31 October 2011
Consolidated statement of cash flows		Company		Consolidated
		Current Month	Year to Date	Current Month	Year to Date
		Oct 2011	4 months	Oct 2011	4 months
		$' 000	$' 000	$' 000	$' 000
	Cash flows related to operating activities
1.1	Receipts from customers	-	-	63	136
1.2	Payments for
	(a) staff costs	(67)	(213)	(119)	(396)
	(b) advertising and marketing	-	-	-	-
	(c) research and development	-	-	-	-
	( ) d leased assets	-	-	-	-
	(e) other working capital	(10)	(136)	(59)	(555)
1.3	Dividends received	-	59	-	757
1.4	Interest and other items of a similar nature received	41	54	7	21
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
	Net operating cash flows	(36)	(236)	(108)	(37)

Notes:

The Company currently has a 50.88% 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 p py y Cash Flow Report takes into account the cash flows of the Company and its controlled entity, including OEQ

		Company		Consolidated
		Current Month	Year to Date	Current Month	Year to Date
		Oct 2011	4 months	Oct 2011	4 months
		$' 000	$' 000	$' 000	$' 000
1.8	Net operating cash flows (carried forward)	(36)	(236)	(108)	(37)
	Cash flows related to investing activities
1.9	Payment for acquisition of:
	(a)businesses (item 5)	-	-	-	-
	(b)equity investments	-	-	-	-
	(c)intellectual propertyintellectual	-	-	-	-
	(d)physical non-current assets	-	-	-	(122)
	(e)other non-current assets	-	-	-	-
1.10	Proceeds from disposal of:
	(a)businesses (item 5)	-	-	-	-
	(b)equity investments		-		-
	(c)intellectual propertyintellectual	-	-	-	-
	(d)physical non-current assets	-	-	-	-
	(e)other non-current assets	-	-	-	-
1.11	Loans to other entities	-	(150)	-	-
1.12	Loans repaid by other entities	650	650	-	-
1.13	Other (provide details if material)	-	-	-	-
	Capital return from equity investmentqy	87	87	1,113	1,113
	Net investing cash flows	737	587	1,113	991
1.14	Total operating and investing cash flows	701	351	1,005	954
	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 held	701	351	1,005	954
1.21	Cash at beginning of month/year to date	1,050	1,400	1,644	1,695
1.22	Exchange rate adjustments to item 1.20	-	-	-	-
1.23	Cash at end of month	1,751	1,751	2,649	2,649

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
		Oct 2011
		$' 000
1.24	Aggregate amount of payments to the parties included in item 1.2	(59)
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) $18,747 - Salaries and fees paid by the Company to Directors; (2) $40,313 - 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

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

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

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
		CurrentMonth$' 000	PreviousMonth$' 000	CurrentMonth$' 000	PreviousMonth$' 000
4.14.2	Cash on hand and at bankDeposits at call	1,71932	1,01832	2,61732	1,61232
4.3	Bank overdraft	-	-	-	-
4.4	Other (Bank Bills)	-	-	-	-
	Total: cash at end of month (item 1.23)	1,751	1,050	2,649	1,644
		-	-	-	-

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 - 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 C ti L ( t t th t t th t i f ti i t i d b f t 2) th t dd t bl t Corporations Law (exceptto the extentthatinformation is notrequiredbecause ofnote 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 9 No ember 2011 Date: 9 November

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

Notes:

The Company currently holds the following listed share investments:		31 October 2011
	No Shares	% Interest	Last Bid Price	Market Value
Shares in Orion Equities Limited (OEQ)	9,063,153	50.88%	$0.290	$2,628,314
Shares (Other)				$291,799
				$2,920,114

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