2015
ANNUAL REPORT
A.B.N 58 081 688 164
CONTENTS
CORPORATE DIRECTORY
Directors’ Report
1
BOARD
Remuneration Report
Auditor’s Independence Declaration
Consolidated Statement of
Profit or Loss and
Comprehensive Income
Consolidated Statement of
Financial Position
Consolidated Statement of
Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial
Statements
Directors’ Declaration
Independent Auditor’s Report
Additional ASX Information
9
15
16
Farooq Khan (Chairman and Managing Director)
(Executive Director)
(Non-Executive Director)
Victor Ho
Yaqoob Khan
COMPANY SECRETARY
Victor Ho
17
PRINCIPAL & REGISTERED OFFICE
Level 2, 23 Ventnor Avenue
West Perth, Western Australia 6005
18
19
20
44
45
47
Telephone:
Facsimile:
Email:
Website:
(08) 9214 9777
(08) 9214 9701
info@queste.com.au
www.queste.com.au
STOCK EXCHANGE
Australian Securities Exchange
Perth, Western Australia
ASX CODE
QUE
Queste’s 2015
Corporate Governance Statement
can be found at the following
URL on the Company’s website:
http://www.queste.com.au/corporate-governance
www.queste.com.au
Visit our website for:
•
•
•
Latest News
Market Announcements
Financial Reports
Register your email with us to
receive latest Company
announcements and releases
EMAIL US AT:
info@queste.com.au
SHARE REGISTRY
Advanced Share Registry Services
110 Stirling Highway
Nedlands, Western Australia 6009
Telephone:
Facsimile:
(08) 9389 8033
(08) 9262 3723
Level 6, 225 Clarence Street
Sydney, New South Wales 2000
Telephone:
(02) 8096 3502
Email:
Website:
admin@advancedshare.com.au
www.advancedshare.com.au
AUDITORS
BDO Audit (WA) Pty Ltd
38 Station Street
Subiaco, Western Australia 6008
Telephone:
Facsimile:
Website:
(08) 6382 4600
(08) 6382 4601
www.bdo.com.au/perth
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
DIRECTORS’ REPORT
The Directors present their report on Queste Communications Ltd (Company or QUE) and its controlled entities
(the Consolidated Entity or Queste) for the financial year ended 30 June 2015 (Balance Date).
Queste is a public company limited by shares that is incorporated and domiciled in Western Australia and has
been listed on the Australian Securities Exchange (ASX) since November 1998.
The Consolidated Entity’s results incorporate the results of controlled entity, ASX-listed investment company,
Orion Equities Limited (Orion or OEQ). The Company has a 59.06% (9,367,653 shares) shareholding interest in
Orion (30 June 2014: 58.90% (9,367,653 shares)).
PRINCIPAL ACTIVITIES
The principal activity of the Company during the financial year was the management of its assets.
The principal activities of controlled entity, Orion, during the financial year were the management of its
investments, including investments in listed and unlisted securities, real estate held for development and resale,
and an olive grove operation.
OPERATING RESULTS
CONSOLIDATED ENTITY
Total revenues
Total expenses
Loss before tax
Income tax benefit
Loss for the year
Net loss/(profit) attributable to non-controlling interest
Loss after tax attributable to owners of the Company
2015
$
328,312
(1,473,724)
(1,145,412)
89,501
(1,055,911)
311,722
(744,189)
2014
$
451,698
(1,660,780)
(1,209,082)
-
(1,209,082)
(331,184)
(1,540,266)
Basic and diluted loss per share (cents)
(2.52)
(5.24)
LOSS PER SHARE
CONSOLIDATED ENTITY
Basic and diluted loss per share (cents)
Weighted average number of fully paid ordinary shares in the
Company outstanding during the year used in the calculation of
basic and diluted earnings per share
2015
(2.52)
2014
(5.24)
29,502,441
29,390,385
The Company’s 9,000,000 partly paid ordinary shares, to the extent that they have been paid (1.5225 cent per
share), have been included in the determination of the basic loss per share.
DIVIDENDS
The Directors have not declared a dividend in respect of the financial year ended 30 June 2015.
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A.B.N. 58 081 688 164
DIRECTORS’ REPORT
FINANCIAL POSITION
CONSOLIDATED ENTITY
Cash
Current investments - equities
Investments in Associate entity
Inventory
Receivables
Deferred tax assets
Other assets
Total Assets
Tax liabilities (current and deferred)
Other payables and liabilities
Net Assets
Issued capital
Reserves
Non-controlling interest
Accumulated losses
Total Equity
CAPITAL MANAGEMENT
Securities on Issue
2015
$
269,805
1,523,346
3,705,212
1,350,000
70,291
216,374
2,084,669
9,219,697
(216,374)
(278,967)
8,724,356
6,268,445
3,200,408
3,298,709
(4,043,206)
8,724,356
2014
$
1,169,619
1,172,419
4,119,072
1,490,000
175,225
98,657
1,738,706
9,963,698
(98,657)
(283,117)
9,581,924
6,268,445
3,106,232
3,520,654
(3,313,407)
9,581,924
At the Balance Date, the Company has the following securities on issue:
(a)
(b)
28,817,316 listed fully paid ordinary shares (2014: 28,817,316 fully paid ordinary shares); and
9,000,000 unlisted partly paid ordinary shares1; each paid to 1.5225 cents with 18.4775 cents per partly
paid ordinary share outstanding (representing the equivalent of 685,125 voting shares 2) (2014: 9,000,000
unlisted partly paid ordinary shares representing the equivalent of 1,522,500 voting shares).
making a total of 29,502,441 voting shares on issue (2014: 29,502,441 voting shares).
There were no securities issued or granted by the Company during or since the financial year.
REVIEW OF OPERATIONS
1.
Orion Equities Limited (OEQ)
1.1. Current Status of Investment in Orion
Orion Equities Limited is an ASX-listed investment entity (ASX Code: OEQ).
The Company holds 9,367,653 shares in Orion, being 59.06% of its issued ordinary share capital (2014:
9,367,653 shares and 58.90%). Orion has been recognised as a controlled entity and included as part of
the Queste Consolidated Entity’s results since 1 July 2002.
1
2
The terms of issue of the partly paid shares are disclosed in the Prospectus for the initial public offering of shares in the Company dated
6 August 1998 and also more recently, in the Company’s Share Buy-Back Offer Booklet dated 11 December 2013 and released on ASX on
17 December 2013.
Each partly paid share is treated for voting purposes as being a proportion of a fully paid share, equal to the proportion to which it has
been paid up - 1.5225 cents per share, representing 7.61% of the $0.20 issue price
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A.B.N. 58 081 688 164
DIRECTORS’ REPORT
Queste shareholders are advised to refer to the 30 June 2015 Full Year Report and monthly NTA
disclosures lodged by Orion for further information about the status and affairs of the company.
Information concerning Orion may be viewed from its website: www.orionequities.com.au
Orion’s market announcements may also be viewed from the ASX website (www.asx.com.au) under ASX
code “OEQ”.
Sections 1.2 to 1.4 below contain information extracted from Orion’s public statements.
1.2. Orion’s Portfolio Details as at 30 June 2015
Asset Weighting
Australian equities
Agribusiness 3
Property held for development and resale
Net tax liabilities (current-year and deferred tax assets/liabilities)
Net cash/other assets and provisions
TOTAL
Major Holdings in Securities Portfolio
Equities
Bentley Capital Limited
Strike Resources Limited
Fair Value
$’million
2.67
0.80
% of
Net Assets
33.10%
9.94%
CBG Australian Equities Fund (Wholesale) (CBG Fund)
Other ASX listed securities
TOTAL
0.26
0.10
3.83
3.24%
N/A
1.24% Various
47.52%
% of Net Assets
2015
2014
58%
25%
17%
-
<1%
100%
56%
20%
17%
-
7%
100%
ASX
Code
Industry Sector
Exposures
BEL
SRK
Diversified Financials
Materials
Diversified
Various
1.3. Orion’s On-Market Share Buy-Backs
During the financial year, Orion bought back 45,000 shares on-market at a total cost of $10,495 and at an
average buy-back cost (including brokerage) of $0.233 per share, pursuant to a series of on-market share
buy-backs4.
Subsequent to the end of the financial year and as at the date of this report, Orion bought back 11,300
shares at a total cost of $2,267 and at an average buy-back cost (including brokerage) of $0.20 per share.
1.4. Orion’s Assets
(a) Bentley Capital Limited (ASX Code: BEL)
Bentley Capital Limited (Bentley) is a listed investment company with a current exposure to Australian
equities.
Orion holds 27.42% (20,513,783 shares) of Bentley’s issued ordinary share capital with Queste holding
2.33% (1,740,625 shares) (2014: Orion held 20,513,783 shares (27.76%) and Queste held 1,740,625
shares (2.36%)).
3
4
Agribusiness net assets include olive grove land, olive trees, buildings and plant and equipment.
Refer to ASX Appendix 3C - Announcement of Buy-Back dated 5 August 2013, ASX Appendix 3C – Announcement of Buy-Back dated 24
February 2014 and ASX Appendix 3C – Announcement of Buy-back dated 5 June 2015
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A.B.N. 58 081 688 164
DIRECTORS’ REPORT
Bentley’s asset weighting as at 30 June 2015 was 95.2% Australian equities (30 June 2014: 94.5%), 3.9%
intangible assets (30 June 2014: 2.7%) 0.9% net cash/other assets (30 June 2014: 2.8%).
Bentley had net assets of $16.43 million as at 30 June 2015 (30 June 2014: $17.68 million) and incurred
an after-tax net loss of $0.267 million for the financial year (30 June 2014: $0.797 million net loss).
Bentley paid a 0.95 cent and a 0.55 cent fully franked dividend distributed in September 2014 and March
2015 respectively at a total cost of $1.111 million (2014 distributions: one cent capital return and one cent
fully franked dividend, totalling $1.468 million).
Orion received $0.308 million from these dividends during the financial year (2014 distributions received:
$0.205 million capital return and $0.205 million in dividend).
Queste received $0.026 million from the fully franked dividend during the financial year (2014: $0.017
million in capital returns and $0.17 million in dividend).
Subsequent to 30 June 2015, Bentley announced its intention to pay a fully-franked dividend of 0.5 cent
per share. Orion’s and Queste’s entitlement from the fully franked dividend is expected to be
approximately $102,569 and $8,703 respectively.
Bentley has a long distribution track record, as illustrated below:
Rate per share
0.50 cent
0.55 cent
0.95 cent
One cent
One cent
One cent
One cent
One cent
5.0 cents
2.4 cents
One cent
One cent
One cent
One cent
Nature
Dividend
Dividend
Dividend
Dividend
Return of capital
Return of capital
Return of capital
Return of capital
Return of capital
Dividend (Special)
Dividend
Dividend
Dividend
Dividend
Queste’s Entitlement
$8,703
$9,573
$16,535
$17,406
$17,406
$17,406
$17,406
$17,406
$87,031
$41,775
$17,406
$17,406
$17,406
$17,406
Orion’s Entitlement
$102,569
$112,826
$194,881
$205,138
$205,138
$205,138
$205,138
$205,138
$1,025,689
$492,331
$205,138
$205,138
$205,138
$205,138
Payment Date
25 September 2015
20 March 2015
26 September 2014
21 March 2014
12 December 2013
18 April 2013
30 November 2012
19 April 2012
14 October 2011
26 September 2011
26 September 2011
17 March 2011
30 September 2010
15 March 2010
Shareholders are advised to refer to the 30 June 2015 Full Year Report and monthly NTA disclosures
lodged by Bentley for further information about the status and affairs of the company.
Information concerning Bentley may be viewed from its website: www.bel.com.au
Bentley’s market announcements may also be viewed from the ASX website (www.asx.com.au) under ASX
code “BEL”.
(b)
Strike Resources Limited (ASX Code: SRK)
Strike Resources Limited (Strike) is a resources company with iron ore exploration and development
projects in Peru.
Orion holds 16,690,802 shares, being 11.48% of Strike’s issued ordinary share capital (2014: 16,690,802
shares and 11.48%).
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A.B.N. 58 081 688 164
DIRECTORS’ REPORT
On 30 June 2015, Bentley announced its intention to make a conditional off-market bid for all of the fully
paid ordinary shares in Strike for a cash consideration of 5.5 cents per share (the Bid).5 Bentley’s Bidder’s
Statement was despatched to Strike shareholders on 31 July 2015 with the Bid scheduled to close on 2
September 2015 (unless extended or withdrawn).6 Prior to the launch of the takeover bid, Bentley did not
have a relevant interest in any Strike shares.
Queste 7 and Orion8 will gain a relevant interest in any Strike shares Bentley acquires a relevant interest in
under the Bid.
Orion also notes that there are some common Directors and Officers on the Boards of Queste, Bentley,
Strike and Orion, as follows:
•
•
•
Queste Executive Chairman and Managing Director, Farooq Khan, is also Executive Chairman of
Orion and Bentley and also an Alternate Director of Strike (as an Alternate Director to Victor Ho);
Queste Executive Director and Company Secretary, Victor Ho,
is also an Executive
Director/Company Secretary of Orion, a Company Secretary of Bentley and a Non-Executive
Director of Strike; and
William Johnson is a Non-Executive Director of Bentley and the Managing Director of Strike;
For further details in relation to Bentley’s Bid for Strike, the Company refers to Bentley’s and Strike’s
releases on ASX and in particular:
•
•
Bentley’s Bidder’s Statement released on ASX on 31 July 2015; and
Strike’s Target’s Statement released on ASX on 14 August 2015
On 26 August 2015, Bentley announced that it had freed its Bid from all defeating conditions other than
that no Prescribed Occurrence9 occurs before the end of the offer period.10
Based on acceptances received as at 28 August 2015:
•
•
Bentley has a relevant interest in 22,498,939 Strike shares (15.481%)11; and
Inclusive of Bentley’s relevant interest above, Queste/Orion has a relevant interest in 39,189,741
Strike shares (29.965%).12
Information concerning Strike may be viewed from its website: www.strikeresources.com.au
Strike’s market announcements may also be viewed from the ASX website (www.asx.com.au) under ASX
code “SRK”.
(c) Other Assets
Orion also owns:
•
•
a 143 hectare commercial olive grove operation (with approximately 64,500, 16 year old olive tree
plantings) located in Gingin, Western Australian; and
a property held for redevelopment or sale but currently rented out located in Mandurah, Western
Australia.
5
6
7
8
9
10
11
12
Refer Bentley’s ASX Announcement dated 30 June 2015: Cash Takeover Bid For Strike Resources At 5.5 Cents Per Share
Refer Bentley’s ASX Announcement dated 31 July 2015: Despatch of Bidders Statement to Holders of Strike Resources Limited
Queste is taken under section 608(3)(b) of the Corporations Act to have a relevant interest in securities in which Orion has a relevant
interest by reason of having control of Orion.
Orion is taken under section 608(3)(a) of the Corporations Act to have a relevant interest in securities in which Bentley has a relevant
interest by reason of having greater than 20% voting power (i.e. shareholding) in Bentley.
Refer to the condition in Section 8.7(g) of Bentley’s Bidder’s Statement - a “Prescribed Occurrence” is defined in the Bidder’s Statement
as an event or circumstance of the kind referred to in section 652C of the Corporations Act.
Refer Bentley’s ASX Announcement dated 26 August 2015: Takeover Bid For Strike Resources –Offer Declared Free Of Defeating
Conditions Except Prescribed Occurrences
Refer Bentley’s AX Announcement dated 31 August 2015: Notice of Change in Interests of Substantial Holder in Strike.
Refer Queste/Orion’s ASX Announcement dated 31 August 2015: Notice of Change in Interests of Substantial Holder in Strike.
ANNUAL REPORT | 5
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A.B.N. 58 081 688 164
DIRECTORS’ REPORT
2.
Queste’s Other Assets
In addition to the investment in controlled entity, Orion, Queste has:
(i)
(ii)
(iii)
a direct share investment in Associate entity, Bentley, being 1,740,625 shares (or 2.33% of
Bentley’s issued ordinary share capital) (2014: 1,740,625 shares and 2.36%);
other investments of $361,227 (2014: $254,057); and
a cash holding of $128,998 (2014: $567,929).
Queste will continue to look at undertaking investments in listed securities where appropriate to
endeavour to achieve a return on investments beyond that afforded by the interest rates applicable on
term deposits.
The Company notes that it lodges Monthly and Quarterly Cash Flow Reports on ASX, which may be may
be viewed and downloaded from the Company’s website: www.queste.com.au or the ASX website
(www.asx.com.au) under ASX Code: QUE.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There were no significant changes in the state of affairs of the Consolidated Entity that occurred during the
financial year not otherwise disclosed in this Directors’ Report or the Consolidated Financial Statements.
FUTURE DEVELOPMENTS
The Consolidated Entity intends to continue its investment activities in future years. The results of these
investment activities depend upon the performance of the underlying companies and securities in which the
Consolidated Entity invests. The investments’ performances depend on many economic factors and also industry
and company specific issues. In the opinion of the Directors, it is not possible or appropriate to make a
prediction on the future course of markets, the performance of the Consolidated Entity’s investments or the
forecast of the likely results of the Consolidated Entity’s activities.
ENVIRONMENTAL REGULATION
The Consolidated Entity is not subject to any particular or significant environmental regulation under Australian
Commonwealth or State legislation.
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A.B.N. 58 081 688 164
DIRECTORS’ REPORT
DIRECTORS
Information concerning Directors in office during or since the financial year:
Farooq Khan
Executive Chairman and Managing Director
Appointed 10 March 1998
Qualifications BJuris, LLB (Western Australia)
Experience Mr Khan is a qualified lawyer having previously practised principally in the field of corporate law.
Mr Khan has extensive experience in the securities industry, capital markets and the executive
management of ASX-listed companies. In particular, Mr Khan has guided the establishment and
growth of a number of public listed companies in the investment, mining and financial services
sectors. He has considerable experience in the fields of capital raisings, mergers and acquisitions
and investments.
Relevant interest in
shares
5,899,944 shares13
Other current
directorships in listed
entities
(1)
(2)
(3)
Executive Chairman of Bentley Capital Limited (BEL) (since 2 December 2003)
Executive Chairman of Orion Equities Limited (OEQ) (since 23 October 2006)
Alternate Director to Victor Ho, who is Non-Executive Director of Strike Resources Limited
(SRK) (since 20 January 2014)
Former directorships in
other listed entities in
past 3 years
Alara Resources Limited (AUQ) (18 May 2007 to 31 August 2012)
Victor P. H. Ho
Executive Director and Company Secretary
Appointed Executive Director since 3 April 2013; Company Secretary since 30 August 2000
Qualifications BCom, LLB (Western Australia), CTA
Experience Mr Ho has been in Executive roles with a number of ASX listed companies across the investments,
resources and technology sectors over the past 15+ years. Mr Ho is a Chartered Tax Adviser (CTA)
and previously had 9 years’ experience in the taxation profession with the Australian Tax Office
(ATO) and in a specialist tax law firm. Mr Ho has been actively involved in the structuring and
execution of a number of corporate, M&A and international joint venture (in South America,
Indonesia and the Middle East) transactions, capital raisings and capital management initiatives
and has extensive experience in public company administration, corporations’ law and stock
exchange compliance and investor/shareholder relations.
Relevant interest in shares 17,500 shares
Other current positions
held in listed entities
(1)
(2)
(3)
Executive Director and Company Secretary of Orion Equities Limited (OEQ) (Secretary
since 2 August 2000 and Director since 4 July 2003)
Non-Executive Director of Strike Resources Limited (SRK) (since 24 January 2014)
Company Secretary of Bentley Capital Limited (BEL) (since 5 February 2004)
Former positions in other
listed entities in past 3
years
Company Secretary of Alara Resources Limited (AUQ) (4 April 2007 to 31 August 2015)
13
Refer Farooq Khan’s Change of Director’s Interest Notice dated 20 November 2014
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A.B.N. 58 081 688 164
DIRECTORS’ REPORT
Yaqoob Khan
Non-Executive Director
Appointed 10 March 1998
Qualifications BCom (Western Australia), Master of Science in Industrial Administration (Carnegie Mellon)
Experience After working for several years in the Australian Taxation Office, Mr Khan completed his
postgraduate Masters degree and commenced work as a senior executive responsible for
product marketing, costing systems and production management. Mr Khan has been an
integral member of the team responsible for the pre-IPO structuring and IPO promotion of a
number of ASX floats and has been involved in the management of such companies. Mr Khan
brings considerable international experience in key aspects of corporate finance and the
strategic analysis of listed investments.
Relevant interest in shares 68,345 shares
Other current directorships in
listed entities
Non-Executive Director of Orion Equities Limited (OEQ) (since 5 November 1999).
Former directorships in other
listed entities in past 3 years
None
At the Balance Date, Yaqoob Khan is a resident overseas.
DIRECTORS' MEETINGS
The following table sets out the numbers of meetings of the Company's Directors held during the financial year
(including Directors’ circulatory resolutions), and the numbers of meetings attended by each Director of the
Company:
Name of Director
Meetings Attended
Maximum Possible Meetings
Farooq Khan
Yaqoob Khan
Victor Ho
7
7
7
7
7
7
There were no meetings of committees of the Board of the Company.
Board Committees
During the financial year and as at the date of this Directors’ Report, the Company did not have separate
designated Audit or Remuneration Committees. In the opinion of the Directors, in view of the size of the Board
and nature and scale of the Consolidated Entity's activities, matters typically dealt with by an Audit or
Remuneration Committee are dealt with by the full Board.
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REMUNERATION REPORT
This report details the nature and amount of remuneration for each Director and Company Executive (being a
company secretary or senior manager) (Key Management Personnel) of the Consolidated Entity.
The information provided under headings (1) to (6) below has been audited as required under section 308(3)(C)
of the Corporations Act 2001 (Cth).
(1) Remuneration Policy
The Board determines the remuneration structure of all Key Management Personnel having regard to the
Consolidated Entity’s nature, scale and scope of operations and other relevant factors, including the
frequency of Board meetings, length of service, particular experience and qualifications, market practice
(including available data concerning remuneration paid by other listed companies in particular companies
of comparable size and nature), the duties and accountability of Key Management Personnel and the
objective of maintaining a balanced Board which has appropriate expertise and experience, at a
reasonable cost to the Company.
Fixed Cash Short Term Employment Benefits: The Key Management Personnel of the Company are
paid a fixed amount per annum plus applicable employer superannuation contributions. The Non-
Executive Directors of the Company are paid a maximum aggregate base remuneration of $55,000 per
annum inclusive of minimum employer superannuation contributions where applicable, to be divided as
the Board determines appropriate.
The Board has determined current Company Key Management Personnel remuneration during the year as
follows:
(a)
(b)
(c)
Mr Farooq Khan (Executive Chairman and Managing Director) - a base salary of $125,000
(voluntarily reduced to $62,500 with effect on 1 April 2013 to assist the Company in reducing its
corporate overheads) per annum plus employer superannuation contributions.
Mr Victor Ho (Executive Director and Company Secretary) - a base salary of $45,000 per annum
plus employer superannuation contributions. Mr Ho agreed to join the Board as an Executive
Director on 3 April 2013 at no further cost to the Company; and
Mr Yaqoob Khan (Non-Executive Director) - a base fee of $15,000 per annum.
Key Management Personnel can also opt to “salary sacrifice” their cash fees/salary and have them paid
wholly or partly as further employer superannuation contributions or benefits exempt from fringe benefits
tax.
Special Exertions and Reimbursements: Pursuant to the Company’s Constitution, each Director is
entitled to receive:
(a)
(b)
Payment for the performance of extra services or the making of special exertions at the request of
the Board and for the purposes of the Company.
Reimbursement of all reasonable expenses (including travelling and accommodation expenses)
incurred by a Director for the purpose of attending meetings of the Company or the Board, on the
business of the Company, or in carrying out duties as a Director.
Long-Term Benefits: Key Management Personnel have no right to termination payments save for
payment of accrued annual leave and long service leave (other than Non-Executive Directors).
Equity Based Benefits: The Company does not presently have any equity (shares or options) based
remuneration arrangements for any personnel pursuant to any executive or employee share or option plan
or otherwise.
Post-Employment Benefits: The Company does not presently provide retirement benefits to Key
Management Personnel.
Performance Related Benefits/Variable Remuneration: The Company does not presently provide
short- or long-term incentive/performance based benefits related to the Company’s performance to Key
Management Personnel, including payment of cash bonuses. The current remuneration of Key
Management Personnel is fixed, is not dependent on the satisfaction of a performance condition and is
unrelated to the Company’s performance.
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A.B.N. 58 081 688 164
REMUNERATION REPORT
Service Agreements: The Company does not presently have formal service agreements or employment
contracts with any Key Management Personnel.
Financial Performance of Company: There is no relationship between the Company’s current
remuneration policy and the Company’s performance.
The Board does not believe that it is appropriate at this time to implement an equity-based benefit scheme
or a performance related/variable component to Key Management Personnel remuneration or
remuneration generally linked to the Company’s performance but reserves the right to implement these
remuneration measures if appropriate in the future (subject to prior shareholder approval where
applicable).
In considering the Company's performance and its effects on shareholder wealth, Directors have had
regard to the data set out below for the latest financial year and the previous four financial years.
2015
2014
2013
2012
2011
Loss Before Income Tax ($)
(1,055,911)
(1,209,082)
(3,453,436)
(5,366,862)
(2,957,447)
Basic Earnings/(Loss) per Share (cents)
(2.52)
(5.24)
(6.73)
(9.85)
(5.52)
Dividends Paid ($)
VWAP Share Price on ASX for financial year ($)
Closing Bid Share Price at 30 June ($)
-
0.00
0.06
-
0.14
0.14
-
0.09
0.09
-
0.11
0.10
-
0.15
0.12
(2)
Engagement of Remuneration Consultants
The Company has not engaged any remuneration consultants to provide remuneration recommendations
in relation to Key Management Personnel during the year. The Board has established a policy for
engaging external Key Management Personnel remuneration consultants which includes, inter alia, that
the Non-Executive Directors on the Remuneration Committee be responsible for approving all
engagements of and executing contracts to engage remuneration consultants and for receiving
remuneration recommendations from remuneration consultants regarding Key Management Personnel.
Furthermore, the Company has a policy that remuneration advice provided by remuneration consultants be
quarantined from Management where applicable.
(3)
Shares held by Key Management Personnel
The number of ordinary shares in the Company during the 2015 reporting period held by Key Management
Personnel, including their related parties are set below:
Key Management Personnel
Executive Directors:
Farooq Khan
Victor Ho
Non-Executive Director:
Yaqoob Khan
Balance at
30 June 2014 Additions
Received as part
Of remuneration
Disposals
Balance at 30
June 2015
6,223,044
17,500
68,345
-
-
-
-
-
-
(55,000)
-
6,168,044
17,500
-
68,345
Note: The disclosures of shareholdings above are in accordance with the accounting standards which require disclosure of
shares held directly, indirectly or beneficially by each key management person, a close member of the family of that
person, or an entity over which either of these persons have, directly or indirectly, control, joint control or significant
influence (as defined under Accounting Standard AASB 124 Related Party Disclosures).
ANNUAL REPORT | 10
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
REMUNERATION REPORT
(4) Details of Remuneration of Key Management Personnel
Details of the nature and amount of each element of remuneration of each Key Management Personnel of
the Company paid or payable by the Consolidated Entity during the financial year are as follows:
Paid by the Company (Queste) to its Key Management Personnel
2015
Performance
related
Short-term Benefits
Post-
Employment
Benefits
Other Long-
term
Benefits
Key Management
Person
Executive Directors:
Farooq Khan
Victor Ho
Non-Executive Director:
Yaqoob Khan
%
-
-
-
Cash, salary
and
commissions
$
Non-cash
benefit
$
Superannuation
$
60,577
45,000
15,000
-
-
-
5,800
4,275
-
Long
service
leave
$
481
-
-
Victor Ho is also Company Secretary of the Company.
2014
Key Management
Person
Executive Directors:
Farooq Khan
Victor Ho
Non-Executive Director:
Yaqoob Khan
Performance
related
Short-term Benefits
Post-
Employment
Benefits
Other Long-
term
Benefits
Cash, salary
and
commissions
$
Non-cash
benefit
$
Superannuation
$
53,485
45,000
15,000
-
-
-
5,603
4,162
-
%
-
-
-
Long
service
leave
$
7,091
-
-
Paid by Orion to Key Management Personnel (who are also KMP of Queste)
2015
Short-term Benefits
Post-
Employment
Benefits
Other
Long-term
Benefits
Key Management
Personnel
Performance
related
%
Cash, salary
and
commissions
$
Non-cash
benefit
$
Superannuation
$
Executive Directors:
Farooq Khan
Victor Ho
Non-Executive Director:
Yaqoob Khan
-
-
-
238,101
68,750
29,000
-
-
-
22,802
13,375
-
Long
service
leave
$
1,923
-
-
2014
Key
Management
Personnel
Short-term Benefits
Post-
Employment
Benefits
Other
Long-term
Benefits
Performance
related
%
Cash, salary
and
commissions
$
Non-cash
benefit
$
Superannuation
$
Executive Directors:
Farooq Khan
Victor Ho
Non-Executive Director:
Yaqoob Khan
-
-
-
213,942
75,000
35,000*
-
-
-
23,125
6,937
-
Long
service
leave
$
36,058
-
-
Equity
Based
Shares &
Options
$
-
-
-
Equity
Based
Shares &
Options
$
-
-
-
Total
$
66,858
49,275
15,000
Total
$
66,179
49,162
15,000
Equity
Based
Shares &
Options
$
Total
$
-
-
-
262,826
82,125
29,000
Equity
Based
Shares &
Options
$
Total
$
-
-
-
273,125
81,937
35,000
*
Includes fees received for the performance of extra services or the making of special exertions at the request of the Board and
for the purposes of the Company.
ANNUAL REPORT | 11
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
REMUNERATION REPORT
Victor Ho is also Company Secretary of Orion.
The tables above may be aggregated to arrive at the aggregate amount of each element of remuneration
of each Key Management Personnel paid or payable by the Consolidated Entity (ie. Queste and Orion)
during the financial year.
(5) Other KMP Transactions
On 1 June 2015, Orion subsidiary, Silver Sands Developments Pty Ltd (SSD) entered into a fixed term
standard form residential tenancy agreement with Orion (and Queste) Director, Farooq Khan, to rent out
Orion’s Property held for Development or Resale. The lease is for a term of 12 months with the monthly
rental being $3,683.
(6) Other Benefits Provided to Key Management Personnel
No Key Management Personnel has during or since the end of the financial year, received or become
entitled to receive a benefit, other than a remuneration benefit as disclosed above, by reason of a contract
made by the Company or a related entity with the Director or with a firm of which he is a member, or with
a Company in which he has a substantial interest.
(7) Voting and Comments on the Remuneration Report at the 2014 AGM
At the Company’s 2014 AGM, a resolution to adopt the 2014 Remuneration Report was not passed by a
majority of shareholders. 14 This constituted the Company's "second strike" under the executive
remuneration related provisions of the Corporations Act (the Company having received its "first strike" at
the 2013 AGM).
As required by the Corporations Act, a resolution to hold fresh elections for directors at a special meeting
was put to the vote at the 2014 AGM, however, this ordinary resolution was not passed.
The Board has reviewed the Company’s remuneration policy and considered feedback from relevant
stakeholders and believes that the Company’s remuneration structure and practices are appropriate, for
the reasons detailed in this Remuneration Report.
This concludes the audited Remuneration Report.
14
Refer Queste’s ASX announcement dated 27 November 2014 “Results of 2014 Annual General Meeting”
ANNUAL REPORT | 12
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
DIRECTORS’ REPORT
DIRECTORS’ AND OFFICERS’ INSURANCE
The Company and Orion each insure Directors and Officers against liability they may incur in respect of any
wrongful acts or omissions made by them in such capacity (to the extent permitted by the Corporations Act)
(D&O Policy). Details of the amount of the premium paid in respect of the insurance policies are not disclosed
as such disclosure is prohibited under the terms of the contract.
DIRECTORS DEEDS
In addition to the rights of indemnity provided under the Company’s Constitution (to the extent permitted by the
Corporations Act), the Company has also entered into a deed with each of the Directors and the Company
Secretary (Officer) to regulate certain matters between the Company and each Officer, both during the time the
Officer holds office and after the Officer ceases to be an officer of the Company, including the following matters:
(a)
(b)
The Company’s obligation to indemnify an Officer for liabilities or legal costs incurred as an officer of the
Company (to the extent permitted by the Corporations Act); and
Subject to the terms of the deed and the Corporations Act, the Company may advance monies to the
Officer to meet any costs or expenses of the Officer incurred in circumstances relating to the indemnities
provided under the deed and prior to the outcome of any legal proceedings brought against the Officer.
LEGAL PROCEEDINGS ON BEHALF OF CONSOLIDATED ENTITY
No person has applied for leave of a court to bring proceedings on behalf of the Consolidated Entity or intervene
in any proceedings to which the Consolidated Entity is a party for the purpose of taking responsibility on behalf of
the Consolidated Entity for all or any part of such proceedings. The Consolidated Entity was not a party to any
such proceedings during and since the financial year.
AUDITOR
Details of the amounts paid or payable to the auditor (BDO Audit (WA) Pty Ltd) for audit and non-audit services
(tax services) provided during the financial year are set out below:
Audit & Review
Fees
$
Consolidated Entity
Non-Audit
Services
$
68,823
10,408
Total
$
79,231
Audit & Review
Fees
$
Company
Non-Audit
Services
$
33,940
4,550
Total
$
38,490
The Board is satisfied that the provision of non-audit services by the auditor during the year is compatible with
the general standard of independence for auditors imposed by the Corporations Act. The Board is satisfied that
the nature of the non-audit services disclosed above did not compromise the general principles relating to auditor
independence as set out in APES 110 Code of Ethics for Professional Accountants: Professional Independence,
including reviewing or auditing the auditor’s own work, acting in a management or decision making capacity for
the Company, acting as advocate for the Company or jointly sharing economic risk and rewards. BDO Audit (WA)
Pty Ltd continues in office in accordance with section 327B of the Corporations Act.
ANNUAL REPORT | 13
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
DIRECTORS’ REPORT
EARLY ADOPTION OF ASX CORPORATE GOVERNANCE PRINCIPLES
The Company updated its Corporate Governance Statement15 in accordance with the early adoption of the
Corporate Governance Principles and Recommendations (3rd Edition, March 2014) issued by the ASX Corporate
Governance Council in respect of the 30 June 2014 financial year, one year before the mandatory adoption date.
The Company will update its Corporate Governance Statement and ASX Appendix 4G (Key to Disclosures of
Corporate Governance Principles and Recommendations) for 2015, which will be announced on ASX and uploaded
to the Company’s website at: http://www.queste.com.au/corporate-governance.
AUDITORS’ INDEPENDENCE DECLARATION
A copy of the Auditor’s Independence Declaration as required under section 307C of the Corporations Act forms
part of this Directors Report and is set out on page 15. This relates to the Auditor’s Independent Review Report,
where the Auditors state that they have issued an independence declaration.
EVENTS SUBSEQUENT TO BALANCE DATE
The Directors are not aware of any other matters or circumstances at the date of this Directors’ Report, other
than those referred to in this Directors’ Report (in particular, in Review of Operations) or the financial statements
or notes thereto (in particular Note 30, that have significantly affected or may significantly affect the operations,
the results of operations or the state of affairs of the Company in subsequent financial years.
Signed for and on behalf of the Directors in accordance with a resolution of the Board.
Farooq Khan
Chairman
31 August 2015
Victor Ho
Executive Director and Company Secretary
15
Refer market announcement dated 24 October 2014 entitled “2014 Corporate Governance Statement and ASX Appendix 4G Key to
Disclosures of Corporate Governance Principles and Recommendations”
ANNUAL REPORT | 14
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY WAYNE BASFORD TO THE DIRECTORS OF QUESTE
COMMUNICATIONS LTD
As lead auditor of Queste Communications Ltd for the year ended 30 June 2015, I declare that, to the
best of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Queste Communications Ltd and the entities it controlled during the
period.
Wayne Basford
Director
BDO Audit (WA) Pty Ltd
Perth, 31 August 2015
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN
77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK
company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under
Professional Standards Legislation, other than for the acts or omissions of financial services licensees.
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
CONSOLIDATED STATEMENT
OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
for the year ended 30 June 2015
Revenue
Other
Share of net profit of associate
Net gain on financial assets at fair value through profit or loss
Reversal of impairment - olive grove land
Other income
Total revenue and income
Expenses
Net loss on financial assets at fair value through profit or loss
Share of net loss of Associate
Cost of goods sold in relation to olive oil operations
Olive grove operation expenses
Land operation expenses
Personnel expenses
Occupancy expenses
Corporate expenses
Finance expenses
Administration expenses
Loss before income tax
Income tax benefit
Loss for the year from continuing operations
Loss for the year from discontinued operations
Loss for the year
Other comprehensive income
Revaluation of assets, net of tax
Total comprehensive loss for the year
Profit/(Loss) attributable to:
Owners of Queste Communications Ltd
Non-controlling interest
Total comprehensive income for the year is attributable to:
Continuing operations
Discontinuing operations
Owners of Queste Communications Ltd
Continuing operations
Discontinuing operations
Non-controlling interest
Basic loss per share (cents) from continuing operations
Basic loss per share (cents) from discontinuing operations
Basic loss per share (cents) attributable to
the ordinary equity holders of the Company
Note
2
11
2
11
3
4
4
5
2015
$
80,289
-
142,374
101,296
4,353
328,312
2014
$
109,275
256,768
-
-
12,619
378,662
-
(80,044)
-
(71,808)
(147,217)
(792,986)
(69,339)
(51,561)
(4,381)
(256,388)
(1,145,412)
(117,649)
-
(11,209)
(183,073)
(7,690)
(756,539)
(129,127)
(47,037)
(3,589)
(220,976)
(1,098,227)
89,501
(1,055,911)
-
(1,098,227)
-
(1,055,911)
(110,855)
(1,209,082)
208,836
(847,075)
-
(1,209,082)
(744,189)
(311,722)
(1,055,911)
(1,540,266)
331,184
(1,209,082)
(535,353)
-
(535,353)
(1,429,411)
(110,855)
(1,540,266)
(311,722)
-
(311,722)
331,184
-
331,184
(847,075)
(1,209,082)
(2.52)
-
(2.52)
(4.86)
(0.38)
(5.24)
The accompanying notes form part of these consolidated financial statements
ANNUAL REPORT | 16
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
as at 30 June 2015
Current assets
Cash and cash equivalents
Financial assets at fair value through profit or loss
Trade and other receivables
Other current assets
Total current assets
Non current assets
Trade and other receivables
Property held for development or resale
Investment in Associate entity
Property, plant and equipment
Olive trees
Intangible assets
Deferred tax asset
Total Non current assets
Total assets
Current liabilities
Trade and other payables
Provisions
Total current liabilities
Non current liabilities
Deferred tax liability
Total non current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Parent interest
Non-controlling interest
Total equity
Note
6
7
8
9
8
10
11
12
13
14
17
15
16
2015
$
269,805
1,523,346
13,171
8,417
2014
$
1,169,619
1,172,419
154,771
6,124
1,814,739
2,502,933
57,120
1,350,000
3,705,212
2,010,752
65,500
-
216,374
20,454
1,490,000
4,119,071
1,667,083
65,500
-
98,657
7,404,958
7,460,765
9,219,697
9,963,698
161,957
117,010
165,760
117,357
278,967
283,117
17
216,374
98,657
216,374
98,657
495,341
381,774
8,724,356
9,581,924
6,268,445
3,200,408
(4,057,596)
5,411,257
6,268,445
3,106,232
(3,313,407)
6,061,270
3,313,099
3,520,654
8,724,356
9,581,924
18
19
20
The accompanying notes form part of these consolidated financial statements
ANNUAL REPORT | 17
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
for the year ended 30 June 2015
Issued capital
$
Reserves
$
Accumulated
losses
$
Non-
controlling
interest
$
Total
$
Balance at 1 July 2013
6,192,427
2,257,792
(1,773,141)
4,546,707
11,223,785
Loss for the year
Other comprehensive income
Total comprehensive
loss for the year
Transactions with owners in
their capacity as owners:
Transactions with
non-controlling interest
Share buy back
Partly paid shares
-
-
-
-
-
-
(1,540,266)
-
331,184
-
(1,209,082)
-
(1,540,266)
331,184
(1,209,082)
-
(108,757)
184,775
848,440
-
-
(1,357,237)
(508,797)
(108,757)
184,775
Balance at 30 June 2014
6,268,445
3,106,232
(3,313,407)
3,520,654
9,581,924
Balance at 1 July 2014
6,268,445
3,106,232
(3,313,407)
3,520,654
9,581,924
Loss for the year
Other comprehensive income
Total comprehensive
loss for the year
Transactions with owners in
their capacity as owners:
Transactions with
non-controlling interest
-
-
-
-
208,836
208,836
(744,189)
-
(311,722)
-
(744,189)
(311,722)
(1,055,911)
208,836
(847,075)
-
(114,660)
-
104,167
(10,493)
Balance at 30 June 2015
6,268,445
3,200,408
(4,057,596)
3,313,099
8,724,356
The accompanying notes form part of these consolidated financial statements
ANNUAL REPORT | 18
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
CONSOLIDATED STATEMENT
OF CASH FLOWS
for the year ended 30 June 2015
Cash flows from operating activities
Receipts from customers
Dividends received
Interest received
Payments to suppliers and employees
Interest paid
Sale of financial assets at fair value through profit or loss
Purchase of financial assets at fair value through profit or loss
Net cash used in continuing operations
Net cash (used in)/provided by discontinued operations
Net cash used in operating activities
Cash flows from investing activities
Proceeds from sale of olive oil operations
Purchase of investment securities
Return of capital received
Purchase of plant and equipment
Note
2015
$
2014
$
65,736
340,754
11,968
(1,201,380)
(140)
509,824
(718,376)
157,838
222,770
75,125
(1,063,297)
(375)
-
(250,000)
(991,614)
(857,939)
9,369
(216,799)
(982,245)
(1,074,738)
101,994
-
-
(9,068)
-
(250,000)
222,544
(43,004)
4
4
Net cash provided by/(used in) investing activities
92,926
(70,460)
Cash flows from financing activities
Queste off-market share buy back
Proceeds from calls on partly paid shares
Orion on-market share buy back
Net cash used in financing activities
-
-
(10,495)
(108,756)
184,775
(508,798)
(10,495)
(432,779)
Net increase /(decrease) in cash held
(899,814)
(1,577,977)
Cash and cash equivalents at beginning of financial year
1,169,619
2,747,596
Cash and cash equivalents at end of financial year
6
269,805
1,169,619
The accompanying notes form part of these consolidated financial statements
ANNUAL REPORT | 19
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2015
1.
SUMMARY OF ACCOUNTING POLICIES
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of
these financial statements are set out below. These policies have
been consistently applied to all the years presented, unless
otherwise stated.
The financial statement includes the financial statements for the
Consolidated Entity consisting of Queste Communications Ltd and
its subsidiaries. Queste Communications Ltd is a company limited
by shares, incorporated in Western Australia, Australia and whose
shares are publicly traded on the Australian Securities Exchange
(ASX).
1.1.
Basis of preparation
These general purpose financial statements have been prepared
in accordance with Australian Accounting Standards, other
authoritative pronouncements of the Australian Accounting
Standards Board, Australia Accounting Interpretations and the
Corporations Act 2001 (Cth), as appropriate for for-profit entities.
Compliance with IFRS
The consolidated financial statements of the Consolidated Entity,
Queste Communications Ltd, also comply with International
Financial Reporting Standards (IFRS) as
the
International Accounting Standards Board (IASB).
issued by
Reporting Basis and Conventions
The financial report has been prepared on an accruals basis and
is based on historical costs modified by the revaluation of selected
non-current assets, and financial assets and financial liabilities for
which the fair value basis of accounting has been applied.
1.2.
Principles of Consolidation
The consolidated financial statements incorporate the assets and
liabilities of the subsidiary of Queste Communications Ltd as at 30
June 2014 and the results of its subsidiary for the year then
ended. Queste Communications Ltd and its subsidiary are
referred to in this financial statement as the Consolidated Entity.
Subsidiaries are all entities (including structured entities) over
which the Consolidated Entity has control. The Consolidated
Entity controls an entity when it is exposed to, or has rights to,
variable returns from its involvement with the entity and has the
ability to affect those returns through its power to direct the
activities of the entity. Subsidiaries are fully consolidated from the
date on which control is transferred to the group. They are
deconsolidated from the date that control ceases. Information on
the controlled entity is contained in Note 22 to the financial
statements.
Subsidiaries are fully consolidated from the date on which control
is
the Consolidated Entity. They are de-
consolidated from the date that control ceases.
transferred
to
All controlled entities have a June financial year-end. All inter-
company balances and transactions between entities in the
Consolidated Entity, including any unrealised profits or losses,
have been eliminated on consolidation.
the controlling and non-controlling interests to reflect their
relative interests in the subsidiary. Any difference between the
amount of the adjustment to non-controlling interests and any
consideration paid or received is recognised in a separate reserve
within equity attributable to owners of Queste Communications
Ltd.
Changes in Ownership Interests
When the Consolidated Entity ceases to have control or significant
influence, any retained interest in the entity is re-measured to its
fair value with the change in carrying amount recognised in profit
or loss. The fair value becomes the initial carrying amount for the
purposes of subsequently accounting for the retained interest as
an associate or financial asset. In addition, any amounts
previously recognised in other comprehensive income in respect
of that entity are accounted for as if the Consolidated Entity has
directly disposed of the related assets or liabilities. This may
mean that amounts previously recognised in other comprehensive
income are reclassified to profit or loss.
If the ownership interest in an associate is reduced but significant
influence is retained, only a proportionate share of the amounts
previously recognised
income are
reclassified to profit or loss where appropriate.
in other comprehensive
1.3.
Investments in Associates
Associates are all entities over which the Consolidated Entity has
significant influence but not control or joint control, generally
accompanying a shareholding of between 20% and 50% of the
voting rights. Investments in associates in the consolidated
financial statements are accounted for using the equity method of
accounting. On initial recognition investment in associates are
recognised at cost, for investments which were classified as fair
value through profit or loss, any gains or losses previously
recognised are reversed through profit or loss. Under this
method, the Consolidated Entity’s share of the post-acquisition
profits or losses of associates are recognised in the consolidated
Statement of Profit or Loss and Other Comprehensive Income,
and its share of post-acquisition movements in reserves is
recognised in other comprehensive income. The cumulative post-
acquisition movements are adjusted against the carrying amount
of the investment (refer Note 11).
Dividends receivable from associates are recognised in the
Company’s Statement of Profit or Loss and Other Comprehensive
Income, while in the consolidated financial statements they
reduce the carrying amount of the investment. When the
Consolidated Entity’s share of losses in an associate equals or
exceeds its interest in the associate, including any other
unsecured long-term receivables, the Consolidated Entity does
not recognise further losses, unless it has incurred obligations or
made payments on behalf of the associate.
Unrealised gains on transactions between the Consolidated Entity
and its associates are eliminated to the extent of the Consolidated
Entity’s interest in the associates. Unrealised losses are also
eliminated unless the transaction provides evidence of an
impairment of the asset transferred. Accounting policies of
associates have been changed where necessary to ensure
consistency with the policies adopted by the Consolidated Entity.
All associated entities have a June financial year-end.
1.4. Operating Segment
The Consolidated Entity treats transactions with non-controlling
interests that do not result in a loss of control as transactions with
equity owners of the Consolidated Entity. A change in ownership
interest results in an adjustment between the carrying amounts of
Operating segments are presented using the ‘management
approach’, where the information presented is on the same basis
as the internal reports provided to the Chief Operating Decision
Makers (CODM). The CODM is responsible for the allocation of
ANNUAL REPORT | 20
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2015
resources
performance.
to operating
segments and assessing
their
1.5. Revenue Recognition
Revenue is measured at the fair value of the consideration
received or receivable. Revenue is recognised to the extent that
it is probable that the economic benefits will flow to the
Consolidated Entity and the revenue can be reliably measured.
All revenue is stated net of the amount of goods and services tax
(GST) except where the amount of GST incurred is not
recoverable from the Australian Tax Office. The following specific
recognition criteria must also be met before revenue
is
recognised:
Sale of Goods and Disposal of Assets
Revenue from the sale of goods and disposal of other assets is
recognised when the Consolidated Entity has passed control of
the goods or other assets to the buyer.
Contributions of Assets
Revenue arising from the contribution of assets is recognised
when the Consolidated Entity gains control of the asset or the
right to receive the contribution.
Interest Revenue
Interest revenue is recognised on a proportional basis taking into
account the interest rates applicable to the financial assets.
Dividend Revenue
Dividend revenue is recognised when the right to receive a
dividend has been established. The Consolidated Entity brings
dividend revenue to account on the applicable ex-dividend
entitlement date.
Consolidated Entity will derive sufficient future assessable income
to enable the benefit to be realised and comply with the
conditions of deductibility imposed by the law.
Deferred tax liabilities and assets are not recognised for
temporary differences between the carrying amount and tax
bases of investments in controlled entities where the parent entity
is able to control the timing of the reversal of the temporary
differences and it is probable that the differences will not reverse
in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a
legally enforceable right to offset current tax assets and liabilities
and when the deferred tax balances relate to the same taxation
authority. Current tax assets and tax liabilities are offset where
the entity has a legally enforceable right to offset and intends
either to settle on a net basis, or to realise the asset and settle
the liability simultaneously.
Current and deferred tax balances attributable to amounts
recognised directly in other comprehensive income or equity are
also recognised directly in other comprehensive income or equity.
1.7. Goods and Services Tax (GST)
from
the Australian Tax Office.
Revenues, expenses and assets are recognised net of the amount
of GST, except where the amount of GST incurred is not
recoverable
these
circumstances the GST is recognised as part of the cost of
acquisition of the asset or as part of an item of the expense.
Receivables and payables in the Statement of Financial Position
are shown inclusive of GST. Cash flows are presented in the
Statement of Cash Flows on a gross basis, except for the GST
component of investing and financing activities, which are
disclosed as operating cash flows.
In
Other Revenues
Other revenues are recognised on a receipts basis.
1.8.
Employee Benefits
1.6.
Income Tax
The income tax expense or revenue for the period is the tax
payable on the current period’s taxable income based on the
notional income tax rate for each taxing jurisdiction adjusted by
changes in deferred tax assets and liabilities attributable to
temporary differences between the tax bases of assets and
liabilities and their carrying amounts in the financial statements,
and to unused tax losses (if applicable).
Deferred tax assets and liabilities are recognised for temporary
differences at the tax rates expected to apply when the assets are
recovered or liabilities are settled, based on those tax rates which
are enacted or substantively enacted for each taxing jurisdiction.
The relevant tax rates are applied to the cumulative amounts of
deductible and taxable temporary differences to measure the
deferred tax asset or liability. An exception is made for certain
temporary differences arising from the initial recognition of an
asset or a liability. No deferred tax asset or liability is recognised
in relation to these temporary differences if they arose in a
transaction, other than a business combination, that at the time
of the transaction did not affect either accounting profit or taxable
profit or loss.
Deferred tax assets are recognised for deductible temporary
differences and unused tax losses only if it is probable that future
taxable amounts will be available to utilise those temporary
differences and losses. The amount of deferred tax assets
benefits brought to account or which may be realised in the
future, is based on the assumption that no adverse change will
occur in income taxation legislation and the anticipation that the
Short-term obligations
Provision is made for the Consolidated Entity’s liability for
employee benefits arising from services rendered by employees to
the Balance Date. Employee benefits that are expected to be
settled within one year have been measured at the amounts
expected to be paid when the liability is settled, plus related on-
costs. Employee benefits payable later than one year from the
Balance Date have been measured at the present value of the
estimated future cash outflows to be made for those benefits.
Employer superannuation contributions are made by
the
Consolidated Entity in accordance with statutory obligations and
are charged as an expense when incurred.
Other long-term employee benefit obligations
The liability for long-service leave is recognised in the provision
for employee benefits and measured as the present value of
expected future payments to be made in respect of services
provided by employees up to the reporting date. Consideration is
given to expected future wage and salary levels, experience of
employee departures and periods of service.
1.9.
Cash and Cash Equivalents
Cash and cash equivalents includes cash on hand, deposits held
at call with banks, other short-term highly liquid investments with
original maturities of three months or less, and bank overdrafts.
Bank overdrafts (if any) are shown within short-term borrowings
in current liabilities on the Statement of Financial Position.
ANNUAL REPORT | 21
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2015
1.10. Receivables
Trade and other receivables are recorded at amounts due less
any provision for doubtful debts. An estimate for doubtful debts
is made when collection of the full amount is no longer probable.
Bad debts are written off when considered non-recoverable.
1.11. Dividends Policy
Provision is made for the amount of any dividend declared, being
appropriately authorised and no longer at the discretion of the
entity, on or before the end of the financial year but not
distributed at the Balance Date.
1.12. Investments and Other Financial Assets and
Liabilities
Financial instruments are initially measured at cost on trade date,
which includes transaction costs, when the related contractual
rights or obligations exist. Subsequent to initial recognition these
instruments are measured as set out below.
Financial assets at fair value through profit and loss
A financial asset is classified in this category if acquired principally
for the purpose of selling in the short term or if so designated by
management and within the requirements of AASB 139:
Recognition and Measurement of Financial Instruments. Realised
and unrealised gains and losses arising from changes in the fair
value of these assets are included in the Statement of Profit or
Loss and Other Comprehensive Income in the period in which
they arise.
for sale
Available for sale financial assets
Available
financial assets, comprising principally
marketable equity securities, are non-derivatives that are either
designated in this category or not classified in any other category.
Realised and unrealised gains and losses arising from changes in
the fair value of these assets are recognised in equity in the
period in which they arise.
Loans and receivables
Loans and receivables are non-derivative financial assets with
fixed or determinable payments that are not quoted in an active
market and are stated at amortised cost using the effective
interest rate method.
Financial liabilities
Non-derivative financial liabilities are recognised at amortised
cost, comprising original debt less principal payments and
amortisation.
Fair value is determined based on current bid prices for all quoted
investments. Valuation techniques are applied to determine the
fair value for all unlisted securities, including recent arm’s length
transactions, reference to similar instruments and option pricing
models.
At each reporting date, the Consolidated Entity assesses whether
there is objective evidence that a financial instrument has been
impaired. Impairment losses are recognised in the profit and
loss.
The Consolidated Entity’s investment portfolio (comprising listed
and unlisted securities) is accounted for as “financial assets at fair
value through profit and loss”.
1.13. Fair value Estimation
The fair value of financial assets and financial liabilities must be
estimated for recognition and measurement or for disclosure
purposes. The fair value of financial instruments traded in active
markets (such as publicly traded derivatives, and trading and
available-for-sale securities) is based on quoted market prices at
the Balance Date. The quoted market price used for financial
assets held by the Consolidated Entity is the current bid price; the
appropriate quoted market price for financial liabilities is the
current ask price.
The fair value of financial instruments that are not traded in an
active market (for example over-the-counter derivatives) is
determined using valuation techniques, including but not limited
to recent arm’s
to similar
instruments and option pricing models. The Consolidated Entity
may use a variety of methods and makes assumptions that are
based on market conditions existing at each Balance Date. Other
techniques, such as estimated discounted cash flows, are used to
determine fair value for other financial instruments.
transactions, reference
length
The nominal value less estimated credit adjustments of trade
receivables and payables are assumed to approximate their fair
values. The fair value of financial liabilities for disclosure
purposes is estimated by discounting the future contractual cash
flows at the current market interest rate that is available to the
Consolidated Entity for similar financial instruments.
The Consolidated Entity’s investment portfolio (comprising listed
and unlisted securities) is accounted for as a “financial assets at
fair value through profit and loss” and is carried at fair value
based on the quoted last bid prices at the reporting date (refer
Note 7).
1.14. Property held for Resale
Property held for development and sale is valued at the lower of
cost and net realisable value. Cost includes the cost of
acquisition, development, borrowing costs and holding costs until
completion of development. Finance costs and holding charges
incurred after development are expensed. Profits are brought to
account on the signing of an unconditional contract of sale.
1.15. Property, Plant and Equipment
All plant and equipment are stated at historical cost less
accumulated depreciation and impairment losses. Historical cost
includes expenditure that is directly attributable to the acquisition
of the items.
Freehold land is not depreciated. Increases in the carrying
amount arising on revaluation of land is recognised, net of tax, in
other comprehensive income and accumulated in reserves in
equity. To the extent that the increase reverses a decrease
previously recognised in profit or loss, the increase is first
recognised in profit or loss. Decreases that reverse previous
increases of the same asset are first recognised in other
comprehensive income to the extent of the remaining surplus
attributable to the asset; all other decreases are charged to profit
or loss. It is shown at fair value, based on periodic valuations by
external independent valuers.
The carrying amount of plant and equipment is reviewed annually
by Directors to ensure it is not in excess of the recoverable
amount from these assets. The recoverable amount is assessed
on the basis of the expected net cash flows that will be received
from the assets’ employment and subsequent disposal. The
expected net cash flows have been discounted to their present
value in determining recoverable amount.
ANNUAL REPORT | 22
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2015
Subsequent costs are included in the asset’s carrying amount or
recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item
will flow to the Consolidated Entity and the cost of the item can
be measured reliably. All other repairs and maintenance are
charged to the Statement of Profit or Loss and Other
Comprehensive Income during the financial period in which they
are incurred.
The depreciation rates used for each class of depreciable assets
are:
Class of Fixed Asset
Buildings
Plant and Equipment
Leasehold Improvements
Rate
7.5%
5-75%
7.5-15%
Method
Diminishing Value
Diminishing Value
Diminishing Value
The assets’ residual values and useful lives are reviewed, and
adjusted if appropriate, at each Balance Date. An asset’s carrying
amount is written down immediately to its recoverable amount if
the asset’s carrying amount is greater than its estimated
recoverable amount.
Gains and losses on disposals are determined by comparing
proceeds with carrying amount. These are included in the profit
and loss. When revalued assets are sold, amounts included in the
revaluation reserve relating to that asset are transferred to
retained earnings.
1.16. Impairment of Assets
At each reporting date, the Consolidated Entity reviews the
carrying values of its tangible and intangible assets to determine
whether there is any indication that those assets have been
impaired. If such an indication exists, the recoverable amount of
the asset, being the higher of the asset’s fair value less costs to
sell and value in use, is compared to the asset’s carrying value.
Any excess of the asset’s carrying value over its recoverable
amount is expensed to the profit or loss. Impairment testing is
performed annually for goodwill and intangible assets with
indefinite lives. Where it is not possible to estimate the
recoverable amount of an individual asset, the Consolidated Entity
estimates the recoverable amount of the cash-generating unit to
which the asset belongs.
1.17. Payables
These amounts represent liabilities for goods and services
provided to the Consolidated Entity prior to the end of financial
year which are unpaid. The amounts are unsecured and are
usually paid within 30 days of recognition.
1.18. Provisions
Provisions for legal claims, service warranties and make good
obligations are made where the Consolidated Entity has a present
legal or constructive obligation as a result of past events, it is
probable that an outflow of resources will be required to settle
the obligation and the amount has been reliably estimated.
Provisions are not recognised for future operating losses.
1.19. Issued Capital
Ordinary shares are classified as equity. Incremental costs
directly attributable to the issue of new shares or options are
shown in equity as a deduction, net of tax, from the proceeds.
Incremental costs directly attributable to the issue of new shares
or options, for the acquisition of a business, are included in the
cost of the acquisition as part of the purchase consideration.
1.20. Earnings Per Share
Basic Earnings per share
Is determined by dividing the operating result after income tax by
the weighted average number of ordinary shares on issue during
the financial period.
Diluted Earnings per share
Adjusts the figures used in the determination of basic earnings
per share by taking into account amounts unpaid on ordinary
shares and any reduction in earnings per share that will probably
arise from the exercise of options outstanding during the financial
period.
1.21. Inventories
Raw materials and stores, work in progress and finished
goods
Raw materials and stores, work in progress and finished goods
are stated at the lower of cost and net realisable value. Cost
comprises direct materials, direct labour and an appropriate
proportion of variable and fixed overhead expenditure, the latter
being allocated on the basis of normal operating capacity. They
include the transfer from equity of any gains or losses on
qualifying cash flow hedges relating to purchases of raw
materials. Costs are assigned to individual items of inventory on
the basis of weighted average costs. Costs of purchased
inventory are determined after deducting rebates and discounts.
Net realisable value is the estimated selling price in the ordinary
course of business less the estimated costs of completion and the
estimated costs necessary to make the sale.
Land held for resale/capitalisation of borrowing costs
Land held for resale is stated at the lower of cost and net
realisable value. Cost is assigned by specific identification and
includes the cost of acquisition, and development and borrowing
costs during development. When development is completed
borrowing costs and other holding charges are expensed as
incurred.
Borrowing costs included in the cost of land held for resale are
those costs that would have been avoided if the expenditure on
the acquisition and development of the land had not been made.
Borrowing costs incurred while active development is interrupted
for extended periods are recognised as expenses.
1.22. Leases
Leases in which a significant portion of the risks and rewards of
ownership are not transferred to the Consolidated Entity as lessee
are classified as operating leases. Payments made under
operating leases (net of any incentives received from the lessor)
are charged to the profit or loss on a straight-line basis over the
period of the lease.
1.23. Intangible Assets
The intangible assets acquired in a business combination are
initially measured at its purchase price as its fair value at the
acquisition date. The revaluation method states that after the
initial recognition, an intangible asset shall be carried at a
revalued amount, being its fair value at the date of the
revaluation less any subsequent accumulated amortisation and
any subsequent accumulated impairment losses. For the purpose
of revaluations under AASB 138: Intangible Assets, fair value shall
be determined by reference to an active market. Revaluations
shall be made with such regularity that at the end of the reporting
period the carrying amount of the asset does not differ materially
from its fair value.
ANNUAL REPORT | 23
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2015
1.24. Biological Assets
Biological assets are initially, and subsequent to initial recognition,
measured at their fair value less any estimated point-of-sale
costs. Gains or losses arising on initial or subsequent recognition
are accounted for via the profit or loss for the period in which the
gain or loss arises. Agricultural produce harvested from the
biological assets shall be measured at its fair value less estimated
point-of-sale costs at the point of harvest.
1.25. Comparative Figures
Certain comparative figures have been adjusted to conform to
changes in presentation for the current financial year.
1.26. Critical accounting judgements and estimates
to make
judgements and estimates and
The preparation of the consolidated financial statements requires
Directors
form
assumptions that affect how certain assets, liabilities, revenue,
expenses and equity are reported. At each reporting period, the
Directors evaluate their judgements and estimates based on
historical experience and on other various factors they believe to
be reasonable under the circumstances, the results of which form
the basis of the carrying values of assets and liabilities (that are
not readily apparent from other sources, such as independent
valuations). Actual results may differ from these estimates under
different assumptions and conditions.
Non-current assets estimated at fair value
The Consolidated Entity carries its freehold land at fair value, with
changes in the fair values recognised in equity. It also carries
inventory (land held for development and resale) and olive trees
at fair value, with changes in the fair value recognised in the
Statement of Profit or Loss and Other Comprehensive Income.
Independent valuations are obtained for these non-current assets
at least annually.
Estimation of useful lives of assets
The Consolidated Entity determines the estimated useful lives and
related depreciation and amortisation charges for its property,
plant and equipment and finite life intangible assets. The useful
lives could change significantly as a result of
technical
innovations, market, economic, legal environment or some other
event. The depreciation and amortisation charge will increase
where the useful lives are less than previously estimated lives, or
technically obsolete or non-strategic assets that have been
abandoned or sold will be written off or written down.
Property, Plant & Equipment – Impairment Assessment
In assessing the recoverable amount of the groups farm property,
plant and equipment, management monitors the worldwide olive
oil prices annually in determining if the Gingin olives should be
harvested. As such the property, plant and equipment is carried
at its written down value and continues to be depreciated as it is
in a condition to be used to generate economic benefits to the
group at such time as required and the assets are maintained in
good working condition therefore their recoverable amount has
been assessed to be in excess of their carrying values at reporting
date.
ANNUAL REPORT | 24
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2015
1.27. Summary of Accounting Standards Issued but not yet Effective
The following new Accounting Standards and Interpretations (which have been released but not yet adopted) have no material impact
on the Consolidated Entity’s financial statements or the associated notes therein.
AASB
reference
Title and
Affected
Standard(s)
AASB 9 (issued
December 2014)
Financial
Instruments
AASB 2015-1
(issued January
2015)
AASB 2014-9
(issued
December 2014)
Amendments to
Australian
Accounting
Standards - Annual
Improvements to
Australian
Accounting
Standards 2012-
2014 Cycle
Amendments to
Australian
Accounting
Standards - Equity
Method in
Separate Financial
Statements
IFRS 15 (issued
June 2014)
Revenue from
contracts with
customers
Nature of Change
Classification and measurement
AASB 9 amendments the classification and measurement of financial
assets:
•
•
•
Financial assets will either be measured at amortised cost, fair value
through other comprehensive income (FVTOCI) or fair value through
profit or loss (FVTPL).
Financial assets are measured at amortised cost or FVTOCI if certain
restrictive conditions are met. All other financial assets are measured
at FVTPL.
All investments in equity instruments will be measured at fair value.
For those investments in equity instruments that are not held for
trading, there is an irrevocable election to present gains and losses
in OCI. Dividends will be recognised in profit or loss
The following requirements have generally been carried forward
unchanged from AASB 139 Financial Instruments: Recognition and
Measurement into AASB 9:
Classification and measurement of financial liabilities, and
•
• Derecognition requirements for financial assets and liabilities.
However, AASB 9 requires that gains or losses on financial liabilities
measured at fair value are recognised in profit or loss, except that the
effects of changes in the liability’s credit risk are recognised in other
comprehensive income.
Impairment
The new impairment model in AASB 9 is now based on an ‘expected loss’
model rather than an ‘incurred loss’ model.
A complex three stage model applies to debt instruments at amortised
cost or at fair value through other comprehensive income for recognising
impairment losses.
A simplified impairment model applies to trade receivables and lease
receivables with maturities that are less than 12 months. For trade
receivables and lease receivables with maturity longer than 12 months,
entities have a choice of applying the complex three stage model or the
simplified model.
Non-urgent but necessary changes to standards
Application date
Annual reporting periods
beginning on or after 1
January 2018
Annual periods
beginning on or after 1
January 2016
Currently, investments in subsidiaries, associates and joint ventures are
accounted for in separate financial statements at cost or at fair value
under AASB 139/AASB 9. These amendments provide an additional
option to account for these investments using the equity method as
described in AASB 128 Investments in Associates and Joint Ventures.
Annual periods
beginning on or after 1
January 2016
An entity will recognise revenue to depict the transfer of promised good
or services to customers in an amount that reflects the consideration to
which the entity expects to be entitled in exchange for those goods or
services. This means that revenue will be recognised when control of
goods or services is transferred, rather than on transfer of risks and
rewards as is currently the case under IAS 18 Revenue.
Annual reporting periods
beginning on or after 1
January 2018
ANNUAL REPORT | 25
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2015
2.
LOSS FOR THE YEAR
The Consolidated Entity's operating loss before income tax includes the following items of revenue and
expense:
(a) Revenue
Revenue from sale of olive oils
Rental revenue
Dividend revenue
Interest revenue
Other
Share of net profit of associate
Net gain on financial assets at fair value through profit or loss
Reversal of impairment - olive grove land
Other income
(b) Expenses
Net loss on financial assets at fair value through profit or loss
Share of net loss of Associate
Olive grove operations
Cost of goods sold
Depreciation of olive grove assets
Net loss on disposal of brand, equipment and inventory
Other expenses
Land operations
Impairment loss on property held for development or resale
Other expenses
Salaries, fees and employee benefits
Occupancy expenses
Finance expenses
Corporate expenses
ASX fees
Share registry
Other corporate expenses
Administration expenses
Professional fees
Audit fees
Legal fees
Depreciation
Other administration expenses
3.
INCOME TAX EXPENSE
The components of tax expense/(benefit) comprise:
Current tax
Deferred tax
17
Income tax expense is attributable to:
Loss from continuing operations
Loss from discontinuing operations
2015
$
-
44,200
24,121
11,968
80,289
142,374
101,296
4,353
328,312
-
80,044
-
51,602
-
20,206
140,000
7,217
792,986
69,339
4,381
34,308
12,673
4,580
2014
$
5,298
44,200
226
59,551
109,275
256,768
-
-
12,619
378,662
117,649
-
11,209
64,602
66,196
52,275
-
7,690
756,539
129,127
3,589
29,224
14,346
3,467
51,561
68,823
42,747
9,785
83,472
1,473,724
71,194
59,612
66,051
9,089
15,030
1,476,889
2015
$
-
(89,501)
(89,501)
-
-
-
2014
$
-
-
-
-
-
-
ANNUAL REPORT | 26
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2015
3.
INCOME TAX EXPENSE (continued)
The prima facie tax on operating loss before income tax is
reconciled to the income tax as follows:
2015
$
2014
$
Prima facie tax payable on operating loss before income tax at 30% (2014:
30%)
Adjust tax effect of:
Other assessable income
Non-deductible expenses
Share of net (profit)/loss of associate
Current year tax losses not brought to account
Income tax attributable to entity
(355,063)
(362,725)
143,876
13,300
24,013
84,373
(89,501)
95,405
20,093
(77,031)
324,258
-
Deferred tax recognised directly in Other Comprehensive Income
Revaluations of land
(89,501)
-
Unrecognised deferred tax balances
Unrecognised deferred tax asset - revenue losses
Unrecognised deferred tax asset - capital losses
Unrecognised deferred tax asset - timing differences
3,580,204
35,241
1,249,845
3,615,445
3,302,461
3,119
1,431,971
3,305,580
The above deferred tax assets have not been recognised in respect of the above items because it is not
probable that future taxable profit will be available against which the Consolidated Entity can utilise the
benefits. Revenue and capital tax losses are subject to relevant statutory tests.
4. DISCONTINUED OPERATIONS
On 30 June 2014, the Consolidated Entity sold a segment of olive oil operations as a going concern. The brand,
equipment and oil inventory relating to the segment were sold in consideration of $101,994 in cash, resulting in
a net loss of $66,196.
The operating loss from this discontinued operations are:
Revenue from sale of olive oil
Olive oil operation expenses
Cost of goods sold
Impairment and depreciation of olive oil assets
Other expenses
Loss for the year from discontinued operations
The carrying amount of assets in this discontinued operations are
summarised as follows:
Current assets
Inventories
Plant and equipment
Non-current assets
Intangibles
Total assets
2015
$
-
-
-
-
-
-
-
-
-
2014
$
191,213
(222,435)
(2,924)
(76,709)
(110,855)
69,557
23,637
74,996
168,190
ANNUAL REPORT | 27
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2015
4. DISCONTINUED OPERATIONS (continued)
The Cash Flows generated from the discontinued operations are as follows:
Operating activates
Receipts from customers
Payments to suppliers and employees
Net cash used in discontinued operations
2015
$
16,907
(7,538)
9,369
2014
$
82,345
(299,144)
(216,799)
5.
LOSS PER SHARE
The following represents the loss and weighted average number of shares
used in the loss per share calculations:
Loss per share from continuing operations
Loss after income tax from continuing operations
Loss after income tax from discontinuing operations
2015
$
2014
$
(744,189)
-
(1,429,411)
(110,855)
Loss after tax attributable to the ordinary equity holders of the Company
(744,189)
(1,540,266)
Loss per share from discontinuing operations
Loss after income tax from discontinuing operations
Weighted average number of ordinary shares
Basic loss per share
From continuing operations attributable to the ordinary equity holders of the
Company
From discontinued operations
Total basic loss per share attributable to the ordinary equity holders of the
Company
-
(110,855)
Number of shares
29,502,441
29,390,385
2015
cents
(2.52)
-
(2.52)
2014
cents
(4.86)
(0.38)
(5.24)
Under AASB 133 Earnings per Share, potential ordinary shares such as partly paid shares will only be treated as
dilutive when their conversion to ordinary shares would increase the loss per share. Diluted loss per share is
not calculated as it does not increase the loss per share.
6.
CASH AND CASH EQUIVALENTS
(a) Reconciliation of cash
Cash at the end of the financial year as shown in the Statement of Cash Flows is reconciled to the related
items in the Statement of Financial Position as follows:
Cash at bank and in hand
Short-term deposits
2015
$
269,805
-
269,805
2014
$
1,119,619
50,000
1,169,619
ANNUAL REPORT | 28
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2015
6.
CASH AND CASH EQUIVALENTS (continued)
(b)
Reconciliation of operating loss after income tax to net cash
used in operating activities
2015
$
2014
$
Loss after income tax
Add/(deduct) non-cash items:
Depreciation
Write off of plant and equipment
Net loss/(gain) on financial assets at fair value through profit or loss
Loss on land held for development or resale
Reversal of impairment - olive grove assets
Share of net loss/(profit) of Associate
Changes in assets and liabilities:
Financial assets at fair value through profit or loss
Trade and other receivables
Inventories
Other non-current assets from discontinued operations
Other current assets
Investments accounted for using the equity method
Trade and other payables
Provisions
Deferred tax
(1,055,911)
(1,209,082)
61,388
3,645
(120,761)
140,000
(101,296)
80,044
(230,165)
2,940
-
-
(2,293)
333,815
(3,804)
(346)
(89,501)
(982,245)
76,615
5,908
51,453
-
-
(256,768)
(250,000)
87,460
140,622
98,633
(270)
222,544
15,779
(57,632)
-
(1,074,738)
(c) Risk exposure
The Consolidated Entity’s exposure to interest rate risk is discussed in Note 24. The maximum exposure to
credit risk at the end of the reporting period is the carrying amount of each class of cash and cash
equivalents mentioned above.
7.
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
Current
Listed securities at fair value
Unlisted managed fund at fair value
Risk exposure
The Consolidated Entity’s exposure to price risk is discussed in Note 24.
8.
TRADE AND OTHER RECEIVABLES
2015
$
2014
$
1,001,185
522,161
1,523,346
672,659
499,760
1,172,419
Current
Trade receivables
Interest receivable
Receivable from related parties
Other receivables
Non current
Bonds and guarantees
-
-
2,373
10,798
13,171
129,235
3,420
3,148
18,968
154,771
57,120
20,454
Risk exposure
The Consolidated Entity’s exposure to credit and interest rate risks is discussed in Note 24.
Impaired trade receivables
None of the Consolidated Entity's receivables are impaired or past due.
ANNUAL REPORT | 29
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2015
9. OTHER CURRENT ASSETS
Prepayments
10. PROPERTY HELD FOR DEVELOPMENT OR RESALE
Property held for development or resale
Impairment of property
2015
$
8,417
2014
$
6,124
3,797,339
(2,447,339)
1,350,000
3,797,339
(2,307,339)
1,490,000
Property held for development or resale was last valued by an independent qualified valuer (a Certified
Practising Valuer and Associate Member of the Australian Property Institute) as at 30 June 2015. The
impairment loss of $140,000 has been recognised in the Statement of Profit or Loss and Other Comprehensive
Income.
11. INVESTMENT IN ASSOCIATE ENTITY
Carrying Amount
Bentley Capital Limited (ASX:BEL)
Movements in carrying amounts
Opening balance
Share of net profit/(loss) after tax
Dividends received
Returns of capital received
Closing balance
Ownership Interest
2015
29.75%
2014
30.12%
2015
$
3,705,212
2014
$
4,119,071
4,119,071
(80,044)
(333,815)
-
4,307,391
256,768
(222,544)
(222,544)
3,705,212
4,119,071
Fair value of listed investment in Associate
2,893,073
3,226,889
Net asset value of investment
4,887,071
5,323,365
Summarised statement of profit or loss and other comprehensive income
Revenue
Expenses
Profit/(Loss) before income tax
Income tax expense
Profit/(Loss) after income tax
Other comprehensive income
Total comprehensive income
2,398,085
(2,665,385)
(267,300)
-
(267,300)
-
2,091,248
(1,298,338)
792,910
3,698
796,608
-
(267,300)
796,608
Summarised statement of financial position
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
6,565,383
10,524,117
17,089,500
17,384,218
878,452
18,262,670
304,394
358,969
663,363
206,914
379,448
586,362
16,426,137
17,676,308
ANNUAL REPORT | 30
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2015
11. INVESTMENT IN ASSOCIATE ENTITY (continued)
Lease commitments
Not longer than one year
Longer than one year but not longer than five years
12. PROPERTY, PLANT AND EQUIPMENT
2015
$
56,035
32,083
88,118
2014
$
73,333
-
73,333
2015
Freehold land
Buildings
Plant and equipment
Leasehold improvements
2014
Freehold land
Buildings
Plant and equipment
Leasehold improvements
Cost
$
1,117,889
124,867
1,380,646
-
Accumulated
Revaluation Depreciation
$
$
623,775
-
-
-
-
(55,808)
(1,180,617)
-
Total
$
1,741,664
69,059
200,029
-
2,623,402
623,775
(1,236,425)
2,010,752
1,117,889
117,876
1,381,844
5,285
2,622,894
224,141
-
-
-
224,141
-
(50,209)
(1,128,451)
(1,292)
(1,179,952)
1,342,030
67,667
253,393
3,993
1,667,083
Movements in carrying amounts
2015
Freehold land
Buildings
Plant and equipment
Leasehold improvements
2014
Freehold land
Buildings
Plant and equipment
Leasehold improvements
Opening
balance
$
1,342,030
67,667
253,393
3,993
1,667,083
Revaluation
/Additions
$
399,634
6,992
2,076
408,702
1,335,355
73,153
316,372
5,358
1,730,238
6,675
-
32,180
4,149
43,004
Disposal/ Depreciation
expense
Write offs
$
$
-
-
(221)
(3,424)
(3,645)
-
-
(24,661)
(4,884)
(29,545)
-
(5,600)
(55,219)
(569)
(61,388)
-
(5,486)
(70,498)
(630)
(76,614)
Closing
balance
$
1,741,664
69,059
200,029
-
2,010,752
1,342,030
67,667
253,393
3,993
1,667,083
Land was valued by an independent qualified valuer (a Certified Practising Valuer and Associate Member of the
Australian Property Institute) as at 30 June 2015. The revaluation gain of $138,071 has been recognised in the
Statement of Profit or Loss and Other Comprehensive Income ($101,296) and the Asset Revaluation Reserve
($298,338; refer to Note 19).
ANNUAL REPORT | 31
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2015
13. OLIVE TREES
Olive trees - at cost
Revaluation
2015
$
300,000
(234,500)
65,500
2014
$
300,000
(234,500)
65,500
There are approximately 64,500 16 year old olive trees on Orion's 143 hectare Olive Grove located in Gingin,
Western Australia. The fair value of the trees is at the Directors' valuation having regard to, amongst other
matters, replacement cost and the trees commercial production qualities.
14. INTANGIBLE ASSETS
2014
At cost
Revaluation/(Impairment)
Movements in Carrying Amounts
At 1 July 2013
Disposal
At 30 June 2014
Brand
name
$
-
-
-
Total
$
-
-
-
74,996
(74,996)
-
74,996
(74,996)
-
The Brand Name pertains to the 'Dandaragan Estate' Olive Oil brand. The Consolidated Entity sold the brand
name, equipment and oil inventory a going concern on 30 June 2014 (Refer to Note 4).
15. TRADE AND OTHER PAYABLES
Current
Trade payables
Dividend payable
GST payable
Other payables and accrued expenses
2015
$
26,427
28,302
17,100
90,128
161,957
2014
$
32,500
28,302
17,533
87,425
165,760
Risk exposure
The Consolidated Entity’s exposure to risks arising from current payables is set out in Note 24.
16. PROVISIONS
Current
Employee benefits - annual leave
Employee benefits - long service leave
2015
$
2014
$
19,316
97,694
117,010
36,196
81,161
117,357
Amounts not expected to be settled within 12 months
The provision for annual leave and long service leave is presented as current since the Consolidated Entity does
not have an unconditional right to defer settlement for any of these employee benefits. Long service leave
covers all unconditional entitlements where employees have completed the required period of service and also
where employees are entitled to pro-rata payments in certain circumstances.
Based on past experience, the employees have never taken the full amount of long service leave or require
payment within the next 12 months. The following amounts reflect leave that is not expected to be taken or
paid within the next 12 months:
Leave obligations expected to be settled after 12 months
2015
$
97,694
2014
$
81,161
ANNUAL REPORT | 32
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2015
17.
DEFERRED TAX
Deferred tax assets
Employee benefits & accruals
Fair value losses
Deferred tax liabilities
Fair value gains
Other
(a) Movements - deferred tax assets
At 1 July 2013
Credited/(charged) to the profit and loss
At 30 June 2014
At 1 July 2014
Credited/(charged) to the profit and loss
At 30 June 2015
(b) Movements - deferred tax liabilities
At 1 July 2013
Charged/(Credited) to the profit and loss
At 30 June 2014
At 1 July 2014
Charged/(Credited) to the profit and loss
Charged to equity
At 30 June 2015
18. ISSUED CAPITAL
Fully paid ordinary shares
Partly paid ordinary shares
2015
Number
28,817,316
9,000,000
2014
Number
28,817,316
9,000,000
Movement in fully paid ordinary shares
At 1 July 2013
Equal access share buy-back - refer (b)
Issue of shares
At 30 June 2014
Date of issue
05-Feb-14
30-Jun-14
At 1 July 2014
At 30 June 2015
Number
of shares
28,404,879
(587,563)
1,000,000
28,817,316
28,817,316
28,817,316
2015
$
53,890
162,484
216,374
216,374
-
216,374
Fair value
losses
$
21,936
16,269
38,205
2014
$
60,452
38,205
98,657
97,631
1,026
98,657
Total
$
95,009
3,648
98,657
Employee
benefits
$
73,073
(12,621)
60,452
60,452
(6,562)
53,890
38,205
124,279
162,484
98,657
117,717
216,374
Fair value
gains
$
90,131
7,500
97,631
97,631
29,242
89,501
216,374
Other
$
4,878
(3,852)
1,026
1,026
(1,026)
-
-
2015
$
6,029,170
239,275
6,268,445
Issue price
$
0.20
Total
$
95,009
3,648
98,657
98,657
28,216
89,501
216,374
2014
$
6,029,170
239,275
6,268,445
$
5,887,927
(58,757)
200,000
6,029,170
6,029,170
6,029,170
ANNUAL REPORT | 33
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2015
18. ISSUED CAPITAL (continued)
Date of issue
Number
of shares
Issue price
$
Movement in partly paid ordinary shares
At 1 July 2013
Equal access share buy-back - refer (b)
Call on partly paid shares - refer (c)
Partly paid shares cancelled
At 30 June 2014
05-Feb-14
At 1 July 2014
At 30 June 2015
(a) Ordinary shares
20,000,000
(10,000,000)
-
(1,000,000)
9,000,000
9,000,000
9,000,000
$
304,500
(50,000)
184,775
(200,000)
239,275
239,275
239,275
At any meeting, each shareholder present in person or by proxy, attorney, or representative has one vote
for each fully paid ordinary share held either upon a show of hands or by a poll. Holders of partly paid
ordinary shares have a fraction of a vote for each partly paid share held, with the fractional vote of each
share being equivalent to the proportion of the total amount paid and payable (excluding amounts
credited) that has actually been paid (not credited) for each share. Amounts paid in advance of a call are
ignored when calculating proportions. The holder of a partly paid ordinary share is not entitled to vote at a
meeting in respect of those shares on which calls are outstanding.
The profits of the Consolidated Entity, which the Directors may from time to time determine to distribute to
shareholders by way of dividends, will be divisible amongst the shareholders in proportion to the amounts
paid on the shares. An amount paid in advance of a call is not to be included as an amount paid on a
share for the purposes of calculating an entitlement to dividends.
(b) Equal access share buy-back
On 21 January 2014, the Company's Off-Market Equal Access Share Buy-Back (approved by shareholders
at the AGM held on 28 November 2013) (Buy-Back) closed with the following shares being bought-back
and cancelled:
(i)
587,563 fully paid ordinary shares were bought back for 10 cents per share at a cost of $58,756; and
(ii)
10,000,000 partly paid ordinary shares were bought back for 0.5 cent per share at a total cost of
$50,000,
with the total cost of the Buy-Back being $108,756.
(c) Call on partly paid ordinary shares
On 27 June 2014, there was a conversion of 1,000,000 partly paid shares into fully paid shares upon
payment of a call made by the Company in relation to 100% of the outstanding balance (being $0.184775
each or $184,775 in total) due and payable in respect of these 1,000,000 partly paid shares.
(d) Capital risk management
The Company's objectives when managing its capital are to safeguard its ability to continue as a going
concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders and
to maintain a capital structure balancing the interests of all shareholders.
The Board will consider capital management initiatives as is appropriate and in the best interests of the
Company and shareholders from time to time, including undertaking capital raisings, share Buy-backs,
capital reductions and the payment of dividends.
ANNUAL REPORT | 34
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2015
19. RESERVES
Option premium reserve
Asset revaluation reserve
Revaluations of freehold land
Deferred tax on revaluations
Non-controlling interest
Other reserve
Dilution movement
Non-controlling Interest
2015
$
2,138,012
2014
$
2,138,012
623,775
(187,132)
(178,749)
257,894
949,247
(144,745)
804,502
325,437
(97,631)
(93,638)
134,168
923,922
(89,870)
834,052
3,200,408
3,106,232
The movement in the Asset Revaluation Reserve relates to the revaluation of the olive grove land from
$1,342,030 to $1,741,664 (Note 12), as assessed by an independent qualified valuer (a Certified Practising
Valuer and Associate Member of the Australian Property Institute) as at 30 June 2015.
Other reserve relates to the gain the Company generated from increasing its shareholding interest in OEQ by
6.48% (30 June 2014: 6.32%) as a consequence of OEQ cancelling a total of 1,953,861 (30 June 2014:
1,908,861) shares bought-back pursuant to an on-market share buy-back at a cost of $519,293 (30 June 2014:
$508,798). This reserve is also used to record the differences which may arise as a result of transactions with
non-controlling interests that do not result in a loss of control.
20. NON-CONTROLLING INTEREST
Issued capital
Asset revaluation reserve
Other reserve
Accumulated losses
2015
$
7,718,615
178,749
144,745
(4,729,010)
3,313,099
2014
$
7,754,435
93,638
89,870
(4,417,289)
3,520,654
The non-controlling interest is a 40.94% (2014: 41.10%) equity holding in Orion Equities Limited (not held by
the Company).
ANNUAL REPORT | 35
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2015
21. PARENT ENTITY INFORMATION
The following information provided relates to the Company, Queste Communications Ltd, as at 30 June 2015.
The information presented below has been prepared using accounting policies outlined in Note 1.
Statement of financial position
Current assets
Non current assets
Total assets
Current liabilities
Total liabilities
Net assets
Issued capital
Reserves
Available for sale reserve
Accumulated losses
Equity
2015
$
500,663
2,312,344
2,813,007
2014
$
823,515
3,120,715
3,944,230
123,017
123,017
252,030
252,030
2,689,990
3,692,200
6,268,445
2,138,012
-
(5,716,467)
2,689,990
6,268,445
2,138,012
(500,499)
(4,213,758)
3,692,200
Statement of profit or loss and other comprehensive income
Loss for the year
Other comprehensive income
Total comprehensive loss for the year
(1,502,709)
-
(1,502,709)
(418,389)
-
(418,389)
(a) Related Party Transaction
The Company has control of Orion Equities Limited (Orion) as it holds 59.06% (9,367,653 shares) of
Orion's issued capital (30 June 2014: 58.90% and 9,367,653 shares). During the year there were
transactions between the Company, Orion and Associate Entity, Bentley Capital Limited (ASX Code: BEL),
pursuant to shared office and administration expense arrangements. There were no outstanding amounts
at the reporting date.
Bentley Capital Limited
Dividends Received
Return of Capital Received
(b) Lease commitments
Not longer than one year
Longer than one year but not longer than five years
Note
28
22. INTEREST IN SUBSIDIARY
2015
$
26,109
-
2014
$
17,406
17,406
50,941
29,167
80,108
73,333
-
73,333
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiary
with non-controlling interest in accordance with the accounting policy described in Note 1:
Ownership Interest
Orion Equities Limited
Incorporated
Australia
2015
59.06%
2014
58.90%
2015
40.94%
2014
41.10%
Parent
Non-Controlling Interest
The Company's interest in OEQ increased during the financial year as a consequence of OEQ cancelling 45,000
shares bought-back pursuant to on-market share buy-backs.
ANNUAL REPORT | 36
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2015
22. INTEREST IN SUBSIDIARY (continued)
Summarised financial
consolidated entity are set out below:
information of the subsidiary with non-controlling interests that are material to the
Summarised statement of profit or loss and other comprehensive
income
Revenue and other income
Expenses
Loss before income tax
Income tax benefit
Loss for the year from continuing operations
Loss for the year from discontinuing operations
Loss after income tax
Other comprehensive income
Total comprehensive loss for the year
Summarised Statement of Financial Position
Current assets
Non-current assets
Total Assets
Current liabilities
Non-current liabilities
Total Liabilities
Net Assets
Statement of cash flows
Net cash from operating activities
Net cash used in investing activities
Net cash used in financing activities
Net increase/(decrease) in cash and cash equivalents
Other financial information
Profit/(Loss) attributable to non-controlling interest
Accumulated non-controlling interest at the end of the year
2015
$
303,057
(1,062,948)
(759,891)
89,501
(670,390)
-
(670,390)
208,837
(461,553)
2014
$
324,071
(1,003,385)
(679,314)
-
(679,314)
(110,855)
(790,169)
-
(790,169)
1,313,988
7,114,399
8,428,387
1,661,885
7,184,035
8,845,920
155,862
179,424
335,286
182,171
98,600
280,771
8,093,101
8,565,149
(544,856)
94,468
(10,495)
(460,883)
(772,640)
187,500
(508,798)
(1,093,938)
(311,722)
3,313,099
331,184
3,520,654
23. SEGMENT INFORMATION
The operating segments are reported in a manner consistent with the internal reporting provided to the "Chief
Operating Decision Maker". The "Chief Operating Decision Maker", who is responsible for allocating resources
and assessing performance of the operating segments, has been identified as the Board of Directors.
The Board has considered the business and geographical perspectives of the operating results and determined
that the Consolidated Entity operates only within Australia, with the main segments being Investments and
Olive Grove. Corporate items are mainly comprised of corporate assets, office expenses and income tax assets
and liabilities.
ANNUAL REPORT | 37
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2015
23. SEGMENT INFORMATION (continued)
2015
Segment revenues
Revenue
Other
Total segment revenues
Personnel expenses
Finance expenses
Administration expenses
Depreciation expenses
Other expenses
Investments
$
80,289
142,374
222,663
Olive grove
$
-
101,296
101,296
-
-
-
-
236,999
2,811
313
3,508
51,602
13,574
Corporate
$
4,353
-
4,353
792,986
4,572
186,057
13,431
167,871
Total
$
84,642
243,670
328,312
795,797
4,885
189,565
65,033
418,444
Total segment profit/(loss)
(14,336)
29,488
(1,160,564)
(1,145,412)
Segment assets
Cash
Financial assets
Property held for development
or resale
Investment in associate
Property, plant and equipment
Other assets
Total segment assets
-
1,523,346
1,350,000
3,705,212
-
-
6,578,558
5,632
-
-
-
1,982,430
67,785
2,055,847
264,173
-
-
-
28,321
292,798
585,292
269,805
1,523,346
-
1,350,000
3,705,212
2,010,751
360,583
9,219,697
Segment liabilities
-
27,033
468,308
495,341
2014
Segment revenues
Revenue
Other
Total segment revenues
Personnel expenses
Finance expenses
Administration expenses
Depreciation expenses
Other expenses
44,426
256,768
301,194
-
-
51,453
-
6,651
196,511
-
196,511
5,257
995
81,954
67,526
340,619
72,170
-
72,170
756,539
3,790
184,999
9,089
270,085
313,107
256,768
569,875
761,796
4,785
318,406
76,615
617,355
Total segment profit/(loss)
243,090
(299,840)
(1,152,332)
(1,209,082)
2014
Segment assets
Cash
Financial assets
Property held for development
or resale
Investment in associate
Property, plant and equipment
Other assets
Total segment assets
-
1,172,419
1,490,000
4,119,071
-
-
6,781,490
11,488
-
1,158,131
-
1,169,619
1,172,419
-
-
1,627,406
199,788
1,838,682
-
-
39,677
145,718
1,343,526
1,490,000
4,119,071
1,667,083
345,506
9,963,698
Segment liabilities
-
29,213
352,561
381,774
ANNUAL REPORT | 38
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2015
24. FINANCIAL RISK MANAGEMENT
The Consolidated Entity's financial instruments consist of deposits with banks, accounts receivable and payable,
investments in listed securities, and other unlisted securities. The principal activity of the Consolidated Entity is
the management of these investments - "financial assets at fair value" (refer to Note 7). The Consolidated
Entity's investments are subject to market (which includes interest rate and price risk), credit and liquidity risks.
The Board of Directors is responsible for
framework (which includes risk
management) but no cost-effective internal control system will preclude all errors and irregularities. The
system is based, in part, on the appointment of suitably qualified management personnel. The effectiveness of
the system is continually reviewed by management and at least annually by the Board.
internal control
the overall
The financial receivables and payables of the Consolidated Entity in the table below are due or payable within
investments are held for trading and are realised at the discretion of the Board of
30 days. The financial
Directors.
The Consolidated Entity holds the following financial instruments:
Financial assets
Cash and cash equivalents
Financial assets at fair value through profit or loss
Trade and other receivables
Financial liabilities
Trade and other payables
Net financial assets
(a) Market risk
(i) Price risk
Note
6
7
8
15
2015
$
269,805
1,523,346
13,171
1,806,322
2014
$
1,169,619
1,172,419
154,771
2,496,809
(161,957)
(161,957)
(165,760)
(165,760)
1,644,365
2,331,049
The Consolidated Entity is exposed to equity securities price risk. This arises from investments held
by the Consolidated Entity and classified in the Statement of Financial Position at fair value through
profit or loss. The Consolidated Entity is not exposed to commodity price risk, save where this has an
indirect impact via market risk and equity securities price risk.
instrument will fluctuate as a result of changes in market prices, whether
The value of a financial
those changes are caused by factors specific to the individual
instrument or its issuer or factors
affecting all instruments in the market. By its nature as an investment company, the Consolidated
Entity will always be subject to market risk as it invests its capital in securities that are not risk free -
the market price of these securities can and will fluctuate. The Consolidated Entity does not manage
this risk through entering into derivative contracts, futures, options or swaps.
Equity price risk is minimised through ensuring that
accordance with Board established mandate limits and investment strategies.
investment activities are undertaken in
The Consolidated Entity has performed a sensitivity analysis on its exposure to market price risk at
balance date. The analysis demonstrates the effect on the current year results and equity which could
result from a change in these risks. The ASX All Ordinaries Accumulation Index was utilised as the
benchmark for the unlisted and listed share investments which are financial assets available-for-sale
or at fair value through profit or loss.
ANNUAL REPORT | 39
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2015
24. FINANCIAL RISK MANAGEMENT (continued)
(i) Price risk (continued)
ASX All Ordinaries
Accumulation Index
Increase 15%
Decrease 15%
Impact on
post-tax profit
Impact on other components
components of equity
2015
$
154,669
(154,669)
2014
$
92,381
(92,381)
2015
$
154,669
(154,669)
2014
$
92,381
(92,381)
(ii)
Interest rate risk
Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in
market interest rates. The Consolidated Entity's exposure to market risk for changes in interest rates
relate primarily to investments held in interest bearing instruments. The average interest rate for the
year for the table below is 1.85% (2014: 3.35%). The revenue exposure is immaterial in terms of the
possible impact on profit or loss or total equity.
Cash at bank and in hand
Short-term deposits
(b) Credit risk
2015
$
269,805
-
269,805
2014
$
1,119,619
50,000
1,169,619
Credit risk refers to the risk that a counterparty under a financial instrument will default (in whole or in
part) on its contractual obligations resulting in financial loss to the Consolidated Entity. Credit risk arises
from cash and cash equivalents and deposits with banks and financial institutions, including outstanding
receivables and committed transactions. Concentrations of credit
risk are minimised primarily by
undertaking appropriate due diligence on potential
investments, carrying out all market transactions
through approved brokers, settling non-market transactions with the involvement of suitably qualified legal
and accounting personnel (both internal and external), and obtaining sufficient collateral or other security
(where appropriate) as a means of mitigating the risk of financial loss from defaults. The Consolidated
Entity's business activities do not necessitate the requirement for collateral as a means of mitigating the
risk of financial loss from defaults.
The credit quality of the financial assets are neither past due nor impaired and can be assessed by
reference to external credit ratings (if available with Standard & Poor's) or to historical information about
counterparty default rates. The maximum exposure to credit risk at reporting date is the carrying amount
of the financial assets as summarised below:
Cash and cash equivalents
AA-
A
A-
Trade receivables (due within 30 days)
No external credit rating available
2015
$
265,536
4,269
-
269,805
2014
$
1,166,007
-
1,623
1,167,630
13,171
154,771
The Consolidated Entity measures credit risk on a fair value basis. The carrying amount of financial assets
recorded in the financial statements, net any provision for losses, represents the Consolidated Entity's
maximum exposure to credit risk.
Liquidity risk is the risk that the Consolidated Entity will encounter difficulty in meeting obligations
associated with financial liabilities. The Consolidated Entity has no borrowings. The Consolidated Entity's
non-cash investments can be realised to meet trade and other payables arising in the normal course of
business. The financial liabilities disclosed in the above table have a maturity obligation of not more than
30 days.
ANNUAL REPORT | 40
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2015
24. FINANCIAL RISK MANAGEMENT (continued)
(c) Liquidity risk
Liquidity risk is the risk that the Consolidated Entity will encounter difficulty in meeting obligations
associated with financial liabilities. The Consolidated Entity has no borrowings. The Consolidated Entity's
non-cash investments can be realised to meet trade and other payables arising in the normal course of
business. The financial liabilities disclosed in the above table have a maturity obligation of not more than
30 days.
25. FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS
(a) Fair value hierarchy
AASB 13 requires disclosure of fair value measurements by level of the following fair value measurement
hierarchy:
(i)
(ii)
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices included within level 1 that are observable for the asset or
liability, either directly (as prices) or indirectly (derived from prices); and
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable
inputs).
(iii)
2015
Financial assets at fair value through
profit or loss:
Level 1
$
Listed securities at fair value
Unlisted managed fund at fair value
1,001,185
Level 2
$
-
522,161
-
-
Level 3
$
-
-
904,664
65,500
970,164
Total
$
1,001,185
522,161
904,664
65,500
2,493,510
-
-
1,001,185
522,161
Land at independent valuation
Olive trees
Total
2014
Financial assets at fair value through
profit or loss:
Listed securities at fair value
Unlisted managed fund at fair value
Land at independent valuation
Olive trees
Total
672,659
-
-
-
499,760
-
-
672,659
499,760
-
-
766,593
65,500
832,093
672,659
499,760
766,593
65,500
2,004,512
There have been no transfers between the levels of the fair value hierarchy during the financial year.
(b) Valuation techniques
The fair value of the listed securities traded in active markets is based on closing bid prices at the end of
the reporting period. These investments are included in Level 1.
The fair value of any assets that are not traded in an active market are determined using certain valuation
techniques. The valuation techniques maximise the use of observable market data where it is available, or
independent valuation and rely as little as possible on entity specific estimates. If all significant inputs
required to fair value an instrument are observable, the instrument is included in Level 2. If one or more of
the significant inputs is not based on observable market data, the instrument is included in Level 3.
ANNUAL REPORT | 41
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2015
25. FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (continued)
The fair value of the unlisted managed fund investment is valued at the audited unit price published by the
investment manager and as such this financial instrument is included in Level 2.
At Level 3, the land were valued by an independent qualified valuer (a Certified Practising Valuer and
Associate Member of the Australian Property Institute) as at 30 June 2015. These assets have been valued
location and market conditions or Direct Comparison or Comparative Sales
based on similar assets,
Approach. The land value per hectare based on rural land sold in the general location provided a rate. A
4% change would increase or decrease the land's fair value change by $69,500 respectively. There has
been no unusual circumstances that may affect the value of the trees.
At Level 3 the olive trees' value was assessed as at 30 June 2015 by the Directors. The fair value of the
trees is at the Directors' valuation having regard to, amongst other matters, replacement cost and the
trees commercial production qualities. The significant unobservable input is the replacement cost of 16
year old fruiting trees. There are no age limits to the commercial viability of an olive grove. A 1% change
in the minimum replacement cost would result in an increase or decrease by $3,500. There has been no
unusual circumstances that may affect the value of the property.
The changes in the Level 3 values are explained in Note 12 in relation to the land.
(c) Level 3 assets
At 1 July 2013
Addition/(Disposal)
At 30 June 2014
Revaluation
At 30 June 2015
(d) Fair values of other financial instruments
Financial assets
Cash and cash equivalents
Trade and other receivables
Financial liabilities
Trade and other payables
Land
$
759,918
6,675
766,593
138,071
904,664
Olive
trees
$
65,500
-
65,500
-
65,500
Total
$
825,418
6,675
832,093
138,071
970,164
2015
$
269,805
13,171
282,976
2014
$
1,169,619
154,771
1,324,390
(161,957)
(165,760)
Due to their short-term nature, the carrying amounts of cash, current receivables and current payables is
assumed to approximate their fair value.
26.
KEY MANAGEMENT PERSONNEL (KMP)
Refer to the Remuneration Report contained in the Directors' Report for details of the remuneration paid or
payable to each member of the Consolidated Entity's KMP for the year ended 30 June 2015. The total
remuneration paid to KMP of the Consolidated Entity during the year is as follows:
Directors
Short-term employment benefits
Other long-term employment benefits
2015
$
502,680
2,404
505,084
2014
$
477,254
43,149
520,403
During the year, the Consolidated Entity received $44,200 rental income from Director, Farooq Khan, pursuant
to a standard form residential tenancy agreement in respect of Property Held for Development or Resale (held
by Orion subsidiary, Silver Sands Developments Pty Ltd).
ANNUAL REPORT | 42
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2015
27. AUDITORS' REMUNERATION
During the year the following fees were paid for services provided by the auditor of the parent entity, its related
practices and other non-related audit firms:
BDO Audit (WA) Pty Ltd
Audit and review of financial statements
Taxation services
2015
$
68,823
10,408
79,231
2014
$
59,612
6,569
66,181
The Consolidated Entity may engage BDO on assignments additional to their statutory audit duties where their
expertise and experience with the Consolidated Entity are important. These assignments principally relate to
taxation advice in relation to the tax notes to the financial statements.
28. COMMITMENTS
Not longer than one year
Longer than one year but not longer than five years
2015
$
106,976
61,250
168,226
2014
$
146,667
-
146,667
On or about 19 May 2015, the Consolidated Entity renewed its non-cancellable operating lease agreement for
shared office accommodation. The lease commitment is the Consolidated Entity's share of the lease costs and
includes all outgoings (inclusive of GST). The lease is for a further 18 month term expiring on or about 30
January 2017.
29.
CONTINGENCIES
(a)
Directors' Deeds
The Company has entered into Deeds of Indemnity with each of its Directors indemnifying them against
liability incurred in discharging their duties as Directors/Officers of the Consolidated Entity. At the end of
the financial period, no claims have been made under any such indemnities and accordingly, it is not
possible to quantify the potential financial obligation of the Consolidated Entity under these indemnities.
(b)
Tenement Royalties
The Consolidated Entity is entitled to receive a royalty of 2% of gross revenues (exclusive of GST) from
any commercial exploitation of any minerals from the Paulsens East (Iron Ore) Project tenements
(EL47/1328 and PL47/1170) in Western Australia currently held by Strike Resources Limited (ASX : SRK).
30.
EVENTS OCCURRING AFTER THE REPORTING PERIOD
(a)
Associate entity, Bentley Capital Limited (ASX : BEL), has announced its intention to pay a fully-
franked dividend of 0.5 cent per share in September 2015. The Company’s entitlement to such
dividend would be $8,703.
No other matter or circumstance has arisen since the end of the financial year that significantly affected, or may
significantly affect, the operations of the Consolidated Entity, the results of those operations, or the state of
affairs of the Consolidated Entity in future financial years.
ANNUAL REPORT | 43
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
DIRECTORS’ DECLARATION
The Directors of the Company declare that:
(1)
The financial statements, Consolidated Statement of Profit or Loss and Other Comprehensive Income,
Consolidated Statement of Financial Position, Consolidated Statement of Cash Flows, Consolidated
Statement of Changes in Equity, and accompanying notes as set out on pages 16 to 43 are in accordance
with the Corporations Act 2001 (Cth) and:
(a)
(b)
comply with Australian Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting; and
give a true and fair view of the Consolidated Entity’s financial position as at 30 June 2015 and of its
performance for the year ended on that date;
(2)
(3)
In the Directors’ opinion there are reasonable grounds to believe that the Company will be able to pay its
debts as and when they become due and payable;
The Directors have been given the declarations required by section 295A of the Corporations Act by the
Executive Chairman and Managing Director (the person who performs the Chief Executive Officer function)
and the Company Secretary (the person who, in the opinion of the Directors, performs the Chief Financial
Officer function); and
(4)
The Company has included in the notes to the Financial Statements an explicit and unreserved statement
of compliance with the International Financial Reporting Standards.
This declaration is made in accordance with a resolution of the Directors made pursuant to section 295(5) of the
Corporations Act.
Farooq Khan
Chairman
31 August 2015
Victor Ho
Executive Director and Company Secretary
ANNUAL REPORT | 44
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
INDEPENDENT AUDITOR’S REPORT
To the members of Queste Communications Ltd
Report on the Financial Report
We have audited the accompanying financial report of Queste Communications Ltd, which comprises
the consolidated statement of financial position as at 30 June 2015, the consolidated statement of
profit or loss and other comprehensive income, the consolidated statement of changes in equity and
the consolidated statement of cash flows for the year then ended, notes comprising a summary of
significant accounting policies and other explanatory information, and the directors’ declaration of the
consolidated entity comprising the company and the entities it controlled at the year’s end or from
time to time during the financial year.
Directors’ Responsibility for the Financial Report
The directors of the company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error. In Note 1, the directors also state, in accordance with Accounting Standard AASB 101
Presentation of Financial Statements, that the financial statements comply with International
Financial Reporting Standards.
Auditor’s Responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We conducted our
audit in accordance with Australian Auditing Standards. Those standards require that we comply with
relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain
reasonable assurance about whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial report. The procedures selected depend on the auditor’s judgement, including the
assessment of the risks of material misstatement of the financial report, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the company’s
preparation of the financial report that gives a true and fair view in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the company’s internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of accounting estimates made by the directors, as
well as evaluating the overall presentation of the financial report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN
77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK
company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under
Professional Standards Legislation, other than for the acts or omissions of financial services licensees.
Independence
In conducting our audit, we have complied with the independence requirements of the Corporations
Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, which
has been given to the directors of Queste Communications Ltd, would be in the same terms if given to
the directors as at the time of this auditor’s report.
Opinion
In our opinion:
(a)
the financial report of Queste Communications Ltd is in accordance with the Corporations Act
2001, including:
(i)
giving a true and fair view of the consolidated entity’s financial position as at 30 June 2015
and of its performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001; and
(b)
the financial report also complies with International Financial Reporting Standards as disclosed in
Note 1.
Report on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June
2015. The directors of the company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
Opinion
In our opinion, the Remuneration Report of Queste Communications Ltd for the year ended 30 June
2015 complies with section 300A of the Corporations Act 2001.
BDO Audit (WA) Pty Ltd
Wayne Basford
Director
Perth, 31 August 2015
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
ADDITIONAL ASX INFORMATION
as at 8 October 2015
CORPORATE GOVERNANCE STATEMENT
The Company has adopted the Corporate Governance Principles and Recommendations (3rd Edition, March 2014)
issued by the ASX Corporate Governance Council in respect of the financial year ended 30 June 2015.
Pursuant to ASX Listing Rule 4.10.3, the Company’s 2015 Corporate Governance Statement (dated on or about 13
October 2015) and ASX Appendix 4G (Key to Disclosures of Corporate Governance Principles and
Recommendations) can be found at the following URL on the Company’s Internet website:
http://queste.com.au/corporate-governance
DISTRIBUTION OF LISTED ORDINARY FULLY PAID SHARES
Spread of Holdings
Number of Holders
Number of Units % of Total Issue Capital
1
1,001
5,001
10,001
100,001
Total
-
-
-
-
-
1,000
5,000
10,000
100,000
and over
UNMARKETABLE PARCELS
11
49
59
98
24
7,227
139,553
550,425
2,727,340
25,392,771
241
28,817,316
0.025%
0.484%
1.910%
9.464%
88.116%
100.00%
Spread of Holdings
Number of Holders
Number of Units % of Total Issue Capital
1
-
6,249
Total
66
66
182,380
182,380
0.633%
0.63%
An unmarketable parcel is considered, for the purposes of the above table, to be a shareholding of 6,249 shares
or less, being a parcel with a value of $500 or less in total, based upon the Company’s closing share price on 8
October 2015 of $0.08 per share.
DISTRIBUTION OF UNLISTED PARTLY PAID ORDINARY SHARES
Name
No. of Partly Paid Shares
% Voting Power*
Chi Tung Investments Ltd
9,000,000
2.322%
These 9,000,000 ordinary shares were issued at a price of 20 cents per share and have been partly paid to
1.5225 cents each and have an outstanding amount payable of 18.4775 cents per share.
ANNUAL REPORT | 47
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
ADDITIONAL ASX INFORMATION
as at 8 October 2015
SUBSTANTIAL SHAREHOLDERS
Substantial Shareholders
Registered Shareholder
Azhar Chaudhri,
Renmuir Holdings Limited
and Chi Tung Investments Ltd1
RENMUIR HOLDINGS LTD
CHI TUNG INVESTMENTS LTD
MR AZHAR CHAUDHRI
CHI TUNG INVESTMENTS LTD
Bell IXL Investments Limited
and associates3
CLEOD PTY LTD
CELLANTE SECURITIES PTY LIMITED
BELL IXL INVESTMENTS LIMITED
Farooq Khan
and Island Australia Pty Ltd4
ISLAND AUSTRALIA PTY LTD
FAROOQ KHAN
Manar Nominees Pty Ltd and
Zelwer Superannuation Pty Ltd5
MANAR NOMINEES PTY LTD
ZELWER SUPERANNUATION PTY LTD
Shares /
Voting Shares
%Voting Power6
3,277,780
2,050,000
1,436,001
685,1252
2,748,490
2,599,747
2,053,282
3,668,577
2,231,367
1,825,663
180,500
25.25%1
25.09%3
20.00%4
6.80%5
Notes:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Based on the substantial shareholding notice filed by Azhar Chaudhri and associates dated 1 July 2014.
Voting shares attributable to 9,000,000 partly paid ordinary shares (issued at a price of 20 cents per share) which have been
partly paid to 1.5225 cent each.
Based on the substantial shareholding notice filed by Bell IXL Investments Limited dated 28 January 2014 (updated to reflect
current percentage voting power)
Based on the substantial shareholding notice filed by Farooq Khan and associate dated 23 January 2014 (updated to reflect
current percentage voting power)
Based on the substantial shareholding notice filed by Manar Nominees Pty Ltd dated 29 December 2003 (updated to reflect
current percentage voting power)
Total Voting Power is equivalent to the total number of fully paid ordinary shares on issue (28,817,316) plus the equivalent
voting shares associated with the partly paid shares on issue based on the amount paid up per partly paid share (685,125).
Movements of less than 1% in voting power are not required to be disclosed to ASX via an update substantial shareholding
notice and accordingly, there may be variances between the shareholdings recorded in the table above and the most recent
substantial shareholding notices lodged on ASX.
VOTING RIGHTS
Subject to any rights or restrictions for the time being attached to any class or classes of shares (at present there
are none), at meetings of shareholders of the Company:
(1)
(2)
(3)
(4)
Each shareholder entitled to vote may vote in person or by proxy or by power of attorney or, in the case
of a shareholder which is a corporation, by representative;
Every person who is present in the capacity of shareholder or the representative of a corporate
shareholder shall, on a show of hands, have one vote;
Every shareholder who is present in person, by proxy, by power of attorney or by corporate representative
shall, on a poll, have one vote in respect of every fully paid share held by him; and
The Company’s partly paid shares have a proportional voting entitlement in accordance with the amount
paid up for that share.
ANNUAL REPORT | 48
30 JUNE 2015
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
ADDITIONAL ASX INFORMATION
as at 8 October 2015
TOP 20 ORDINARY FULLY PAID SHAREHOLDERS
Rank Shareholder
1
CLEOD PTY LTD
BELL IXL INVESTMENTS LIMITED
CELLANTE SECURITIES PTY LIMITED
Shares Held
2,748,490
2,599,747
2,053,282
Total
Shares
% Issued
Capital
% Voting
Power*
2
RENMUIR HOLDINGS LTD
CHI TUNG INVESTMENTS LTD
MR AZHAR CHAUDHRI
3
ISLAND AUSTRALIA PTY LTD
FAROOQ KHAN
4
MANAR NOMINEES PTY LTD
ZELWER SUPERANNUATION PTY LTD
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
COWOSCO CAPITAL PTY LTD
MR DONALD GORDON MACKENZIE & MRS GWENNETH EDNA
MACKENZIE
MS ROSANNA DE CAMPO
GLENVIEW SERVICES PTY LTD
GIBSON KILLER PTY LTD
MR AYUB KHAN
MRS AFIA KHAN
MR SIMON KENNETH CATO
ROSEMONT ASSET PTY LTD
TOMATO 2 PTY LTD
MR JOHN CHENG-HSIANG YANG & MS PEGA PING PING MOK
MR ANTHONY NEALE KILLER & MRS SANDRA MARIE KILLER
MR EUGENE RODRIGUEZ
MR KEITH FRANCIS OATES & MRS LINDA ANN OATES
MRS MARY THERESE CAMILLERI
DR SIEW NAM UN
CITICORP NOMINEES PY LIMITED
Sub-total
7,401,519
25.68%
25.09%
3,277,780
2,050,000
1,436,001
Sub-total
6,763,781
23.47%
22.93%
3,668,577
2,231,367
Sub-total
5,899,944
20.47%
20.00%
1,825,663
180,500
Sub-total
2,006,163
1,150,000
466,003
268,100
240,000
220,000
215,000
215,000
118,000
75,000
Sub-total
193,000
185,019
136,125
130,000
110,000
100,000
100,000
87,500
85,296
6.96%
3.99%
1.62%
0.93%
0.83%
0.76%
0.75%
0.75%
0.67%
0.64%
0.47%
0.45%
0.38%
0.35%
0.35%
0.30%
0.30%
6.80%
3.90%
1.58%
0.91%
0.81%
0.75%
0.73%
0.73%
0.65%
0.63%
0.46%
0.44%
0.37%
0.34%
0.34%
0.30%
0.29%
Total
25,972,450
90.13%
88.03%
*
% Voting Power is equivalent to the total number of fully paid ordinary shares on issue (28,817,316) plus the equivalent voting shares
associated with the partly paid shares on issue based on the amount paid up per partly paid share (685,125).
ANNUAL REPORT | 49
ASX Code: QUE
Queste Communications Ltd
A.B.N. 58 081 688 164
PRINCIPAL & REGISTERED OFFICE:
Level 2, 23 Ventnor Avenue
West Perth , Western Australia 6005
SHARE REGISTRY:
Advanced Share Registry Limited
110 Stirling Highway
Nedlands, Western Australia 6009
Level 6, 225 Clarence Street
Sydney, New South Wales 2000
PO Box 1156, Nedlands
Western Australia 6909
PO Box Q1736, Queen Victoria Building
New South Wales 1230
T | (08) 9214 9777
F | (08) 9214 9701
E | info@queste.com.au
W| www.queste.com.au
T | (08) 9389 8033
F | (08) 9262 3723
E | admin@advancedshare.com.au
W| www.advancedshare.com.au
T | (02) 8096 3502