QUESTE COMMUNICATIONS LIMITED — Interim / Quarterly Report 2021

Sep 8, 2020

Rule 4.7B

August 2020 Monthly Cash Flow Report

Name of entity

QUESTE COMMUNICATIONS LTD and controlled entity

ABN					Month Ended (current month)
	58 081 688 164				31 August 2020
	Company			Consolidated
		Current Month	Year to Date	Current Month	Year to Date
	Consolidated statement of cash flows	Aug 20	2 months	Aug 20	2 months
		$A' 000	$A' 000	$A' 000	$A' 000
1.	Cash flows from operating activities
1.1	Receipts from customers	-	-	-	-
1.2	Payments for
	(a)research and development	-	-	-	-
	(b)product manufacturing and operating costs	-	-	-	-
	(c)advertising and marketing	-	-	-	-
	(d)leased assets	-	-	-	-
	(e)staff costs	(47)	(74)	(118)	(181)
	(f)administration and corporate costs	(22)	(23)	(36)	(48)
1.3	Dividends received (see note 3)	-	-	-	-
1.4	Interest received	-	-	-	-
1.5	Interest and other costs of finance paid	(1)	(2)	-	-
1.6	Income taxes paid	-	-	-	-
1.7	Government grants and tax incentives	50	62	104	116
1.8	Other (provide details if material)
	- Recovery of staff costs under shared officearrangements	20	40	20	40
1.9	Net cash from / (used in) operating activities	-	3	(30)	(73)
2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a)entities	-	-	-	-
	(b)businesses	-	-	-	-
	(c)property, plant and equipment	-	-	-	-
	(d)investments	-	-	-	-
	(e)intellectual property	-	-	-	-
	other non-current assets(f)	-	-	-	-

Notes:

The Company currently has a 59.86% (30 June 2020: 59.86%) 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 Month	Year to Date	Current Month	Year to Date
	Consolidated statement of cash flows	Aug 20	2 months	Aug 20	2 months
		$A' 000	$A' 000	$A' 000	$A' 000
2.	Cash flows from investing activities (continued)
2.2	Proceeds from the disposal of:
	(a)entities	-	-	-	-
	(b)businesses	-	-	-	-
	(c)property, plant and equipment	-	-	-	-
	(d)investments	-	-	-	-
	(e)intellectual property	-	-	-	-
	other non-current assets(f)	-	-	-	-
2.3	Cash flows from loans to other entities	-	-	-	-
2.4	Dividends received (see note 3)	-	-	-	-
2.5	Other (provide details if material)	-	-	-	-
2.6	Net cash from / (used in) investing activities	-	-	-	-
3.	Cash flows from financing activities
3.1	Proceeds from issues of equity securities (excludingconvertible debt securities)	-	-	-	-
3.2	Proceeds from issue of convertible debt securities	-	-	-	-
3.3	Proceeds from exercise of options	-	-	-	-
3.4	Transaction costs related to issues of equity	-	-	-	-
	securities or convertible debt securitiesProceeds from borrowings
3.5		-	-	-	-
3.6	Repayment of borrowings	(4)	(7)	-	-
3.7	Transaction costs related to loans and borrowings	-	-	-	-
3.8	Dividends paid	-	-	-	-
3.9	Other (provide details if material)	-	-	-	-
3.10	Net cash from / (used in) financing activities	(4)	(7)	-	-
4.	Net increase / (decrease) in cash and cashequivalents for the period
4.1	Cash and cash equivalents at beginning of period	57	57	309	352
4.2	Net cash from/(used in) operating activities	-	3	(30)	(73)
	(item 1.9 above)
4.3	Net cash from/(used in) investing activities	-	-	-	-
	(item 2.6 above)
4.4	Net cash from/(used in) financing activities(item 3.10 above)	(4)	(7)	-	-
4.5	Effect of movement in exchange rates on cash held	-	-	-	-
4.6	Cash and cash equivalents at end of period	53	53	279	279

5.	Reconciliation of cash and cash equivalentsat the end of the month (as shown in the consolidatedstatement of cash flows) to the related items in theaccounts	Company		Consolidated
		Current	Previous	Current	Previous
		Month	Month	Month	Month
		$A' 000	$A' 000	$A' 000	$A' 000
5.1	Bank balances	53	57	279	309
5.2	Call deposits	-	-	-	-
5.3	Bank overdrafts	-	-	-	-
5.4	Other (provide details)	-	-	-	-
5.5	Cash and cash equivalents at end of month (shouldequal item 4.6 above)	53	57	279	309

6.	Payments to related parties of the entity and their associates	Current Month
		$A' 000
6.1	Aggregate amount of payments to related parties and their associates included in item 1	(93)
6.2	Aggregate amount of payments to related parties and their associates included in item 2	-

7.	Financing facilities availableAdd notes as necessary for an understanding ofthe position	Total facility amountat month end$A' 000	Amount drawnat month end$A' 000
7.1	Loan facilities	200	83
7.2	Credit standby arrangements	-	-
7.3	Other (please specify)	-	-
7.4	Total financing facilities	200	83

7.5 Unused financing facilities available at month end

117

7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after month end, include a note providing details of those facilities as well.

Note: OEQ and QUE have entered into a Loan Agreement for OEQ to advance up to $200,000 to QUE. The loan is unsecured and matures on 31 December 2020 and accrues interest at 10% pa in respect of the first $150,000 advanced, and 7.5% pa in respect of $50,000 advanced thereafter.

8.	Estimated cash available for future operating activities	Company	Consolidated
		$A' 000	$A' 000
8.1	Net cash from / (used in) operating activities (Item 1.9)	-	(30)
8.2	Cash and cash equivalents at month end (Item 4.6)	53	279
8.3	Unused finance facilities available at month end (Item 7.5)	117	-
8.4	Total available funding (Item 8.2 + Item 8.3)	170	279
		Not applicable as Item 8.1 (for the
8.5	Estimated months of funding available (Item 8.4 divided by Item 8.1)	Company) is Nil

8.6 If Item 8.5 is less than 6 months, please provide answers to the following questions:

8.6.1. Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?

Not applicable

8.6.2. Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

Not applicable

Not applicable 8.6.3. Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

Compliance statement

1. This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

2. This statement gives a true and fair view of the matters disclosed.

Authorised by

9 September 2020

Victor Ho Executive Director & Company Secretary

The Company currently holds the following listed share investments:

			31-Aug-20
	No Shares	% Interest	Last Bid Price	Market Value
Shares in Orion Equities Limited (OEQ)	9,367,653	59.9 %	$0.093	$871,192
Shares in Bentley Capital Limited (BEL)	1,225,752	1.6 %	$0.076	$93,157
				$964,349

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

See Chapter 19 of ASX Listing Rules for defined terms

Notes

• 1. This monthly cash flow report provide a basis for informing the market about the entity's activities for the past month , how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.
• 1. If this monthly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this monthly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report. If this monthly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this monthly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.
• 1. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.
• 1. If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee – eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".
• 5 If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

AUTHORISED FOR RELEASE BY AND FOR FURTHER INFORMATION

Victor Ho Executive Director & Company Secretary T| 0413 735 165 E| cosec@queste.com.au