QUESTE COMMUNICATIONS LIMITED — Interim / Quarterly Report 2014

Jul 17, 2014

QUESTE COMMUNICATIONS LTD and controlled entity

Appendix 4C

Quarterly Report for entities admitted on the basis of commitments

Name of entity:

ACN or ARBN		Quarter Ended
081 688 164		30 June 2014
Consolidated statement of cash flows		CompanyConsolidated
		Current QuarterJune 14$' 000	Year to Date12 months$' 000	Current QuarterJune 14$' 000	Year to Date12 months$' 000
	Cash flows related to operating activities
1.1	Receipts from customers	-	-	45	217
1.2	Payments forstaff costs(a)(b)advertising and marketingresearch and development(c)leased assets(d)(e)other working capital	21---(34)	(153)---(206)	(128)---(176)	(608)---(761)
1.31.41.51.61.7	Dividends receivedInterest and other items of a similar nature receivedInterest and other costs of finance paidIncome taxes (paid)/refundOther (provide details if material)	-5--	1821--	-16--	22372--
	Net operating cash flows	(8)	(320)	(243)	(857)

Notes:

The Company currently has a 58.90% (31 March 2014: 58.51%) 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 Quarterly Cash Flow Report takes into account the cash flows of the Company and its controlled entity, OEQ.

The Company's interest in OEQ increased during the quarter as a consequence of OEQ cancelling 105,616 shares bought-back pursuant to an on-market share buy-back.

		Company		Consolidated
		Current Quarter	Year to Date	Current Quarter	Year to Date
		June 14	12 months	June 14	12 months
		$' 000	$' 000	$' 000	$' 000
1.8	Net operating cash flows (carried forward)	(8)	(320)	(243)	(857)
	Cash flows related to investing activities
1.9	Payment for acquisition of:
	businesses (item 5)(a)	-	-	-	-
	equity investments(b)	(250)	(250)	(500)	(500)
	intellectual property(c)	-	-	-	-
	(d)physical non-current assets	-	(10)	-	(28)
	other non-current assets(e)	-	-	-	-
1.10	Proceeds from disposal of:
	businesses (item 5)(a)	-	-	-	-
	equity investments(b)	-	-	-	-
	intellectual property(c)	-	-	-	-
	physical non-current assets(d)	-	-	-	-
	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)	-	-	-	-
	- Distribution of capital return from equity investment	-	17	-	223
	Net investing cash flows	(250)	(243)	(500)	(305)
1.14	Total operating and investing cash flows	(258)	(563)	(743)	(1,162)
	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)	-	-	-	-
	- Proceeds from calls on QUE Partly Paid Shares	185	185	185	185
	- QUE Off-Market Share Buy Back	(2)	(109)	(2)	(109)
	- OEQ On-Market Share Buy Back	-	-	(13)	(493)
	Net financing cash flows	183	76	170	(417)
	Net increase (decrease) in cash held	(75)	(487)	(573)	(1,579)
1.211.22	Cash at beginning of quarter/year to dateExchange rate adjustments to item 1.20	662-	1,0731	1,762-	2,7662
1.23	Cash at end of month	587	587	1,189	1,189

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 QuarterJune 14$' 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	-

1.26 Explanation necessary for an understanding of the transactions

Payments for Staff costs (in Item 1.24) includes: (1) $30,834 - Salaries, fees and superannuation paid by the Company to Directors;

(2) $97,233 - Salaries, fees and superannuation 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 an

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 relateditems in the accounts is as follows:		Company		Consolidated
		CurrentQuarter	PreviousQuarter	CurrentQuarter	PreviousQuarter
		4.1	Cash on hand and at bank	566	142
4.2	Deposits at call	21	520	71	1,320
4.3	Bank overdraft	-	-	-	-
4.4	Other (Bank Bills)	-	-	-	-
	Total: cash at end of month (item 1.23)	587	662	1,189	1,762

Acquisitions and disposals of business entities

		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	-	-	-	-

Name of entity

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: 18 July 2014

Victor Ho Company Secretary

The Company currently holds the following listed share investments and investments in unlisted managed funds:

	30 June 2014
	No Shares/Units	% Interest	Last Bid Price	Market Value
Shares in Orion Equities Limited (OEQ)	9,367,653	58.51%	$0.260	$2,435,590
Shares in Bentley Capital Limited (BEL)	1,740,625	2.36%	$0.145	$252,391
Shares (Other)	-	-	-	$4,176
Units in unlisted managed fund	154,902	-	$1.613	$249,880
				$2,942,037

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