QUESTE COMMUNICATIONS LIMITED — Interim / Quarterly Report 2011

Oct 11, 2011

Appendix 4C Quarterly Report for entities admitted on the basis of commitments

Name of entity

QUESTE COMMUNICATIONS LTD and controlled entity

ACN or	ACN or ARBN	Quarter EndedQuarter
081 688 164		30 September 2011
	Consolidated statement of cash flows	Company		Consolidated
		Current Quarter	Year to Date	Current Quarter	Year to Date
		Sept 2011	3 months	Sept 2011	3 months
		$' 000	$' 000	$' 000	$' 000
Cash	Cash flows related to operating activitiesflowsrelatedtooperating
1.1	Receipts from customers	-	-	73	73
1.2	Payments for
	(a) staff costs	(146)	(146)	(277)	(277)
	(b) advertising and marketing	-	-	-	-
	(c) research and developmentresearch and	-	-	-	-
	(d) leased assets	-	-	-	-
	(e) other working capital	(126)	(126)	(496)	(496)
1.3	Dividends received	59	59	757	757
1.4	Interest and other items of a similar nature receiv	13	13	14	14
1.5	Interest and other costs of finance paid	-	-	-	-
1 6.	IIncome taxes (paid)/refundt(id)/fd	-	-	-	-
1.7	Other (provide details if material)
	Net operating cash flows	(200)	(200)	71	71

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 Cash Flow Report takes into account the cash flows of the Company and its controlled entity, including OEQ

		Company				Consolidated
		Current Quarter	Year to Date	Current Quarter	Year to Date
		Sept 2011	3 months	Sept 2011	3 months
		$' 000	$' 000	$' 000	$' 000
1.8	Net operating cash flows (carried forward)	(200)	(200)	71	71
	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)	(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)	(150)	-	-
1.12	Loans repaid by other entities	-	-	-	-
1.13	Other (provide details if material)	-	-	-	-
	Net investing cash flows	(150)	(150)	(122)	(122)
1.14	Total operating and investing cash flows	(350)	(350)	(51)	(51)
	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	(350)	(350)	(51)	(51)
1.21	Cash at beginning of month/year to date	1,400	1,400	1,695	1,695
1.22	Exchange rate adjustments to item 1.20	-	-	-	-
1.23	Cash at end of month	1,050	1,050	1,644	1,644

Queste Communications Ltd (ABN 58 081 688 164) Level 14, The Forrest Centre, 221 St Georges Terrace, Perth, Western Australia 6000 Tel: (08) 9214 9777 Email: info@queste.com.au Fax: (08) 9322 1515 Page 2

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 2011
		$' 000
1.24	Aggregate amount of payments to the parties included in item 1.2	(128)
1.25	Aggregate amount of loans to the parties included in item 1.11	(150)

1.26 Explanation necessary for an understanding of the transactions

Payments for Staff costs (in Item 1.2) includes: (1) $39,663 - Salaries and fees paid by the Company to Directors; (2) $88,504 - Salaries and fees paid by controlled entity, Orion Equities Limited (OEQ), to its Directors.

On 29 August 2011, the Company advanced to OEQ, $150,000 under a $650,000 loan facility. The loan is unsecured and attracts 10% interest per annum and the facility expires on 30 June 2012.

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

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

Date 12 October 2011

Date: 12 October

Reconciliation of cashReconciliation of cash at the end of the month (asshown in the consolidated statement of cash flows) tothe related items in the accounts is as follows		Company		Consolidated
		Current	Previous	Current	Previous
		Quarter	Quarter	Quarter	Quarter
		$' 000	$' 000	$' 000	$' 000
4.1	Cash on hand and at bank	1,018	1,368	1,612	1,368
4.2	Deposits at call	32	32	32	327
4.3	Bank overdraft	-	-	-	-
4.4	Other (Bank Bills)	-	-	-	-
	Total: cash at end of month (item 1.23)	1,050	1,400	1,644	1,695
		-	-	-	-

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

Notes:

The Company currently holds the following listed share investments:	30 September 2011
	% Interest	No Shares	Last Bid Price	Market Value
Shares in Orion Equities Limited (OEQ)	50.88%	9,063,153	$0.275	$2,492,367
Shares (Other)				$389,214
				$2,881,581

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