A.B.N 58 081 688 164
2016
ANNUAL REPORT
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
CONTENTS
CORPORATE DIRECTORY
Company Update
2
BOARD
Directors’ Report
Remuneration Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or
Loss and Comprehensive Income
3
12
18
19
Farooq Khan (Chairman and Managing Director)
(Executive Director)
(Non-Executive Director)
Victor Ho
Yaqoob Khan
COMPANY SECRETARY
Victor Ho
Consolidated Statement of Financial
20
Level 2
Position
23 Ventnor Avenue
West Perth, Western Australia 6005
PRINCIPAL & REGISTERED OFFICE
Consolidated Statement of
21
Changes in Equity
Consolidated Statement of Cash Flows
22
Notes to the Consolidated Financial
23
Telephone:
Facsimile:
Email:
Website:
(08) 9214 9777
(08) 9214 9701
info@queste.com.au
www.queste.com.au
Statements
Directors’ Declaration
Independent Audit Report
Additional ASX Information
AUDITORS
Rothsay Auditing
Chartered Accountants
Level 1, Lincoln House
4 Ventnor Avenue
West Perth, Western Australia 6005
Telephone:
Website:
(08) 9486 7094
www.rothsayresources.com.au
48
49
51
Queste’s 2016
Corporate Governance Statement
can be found at the following
URL on the Company’s website:
http://www.queste.com.au/corporate-governance
STOCK EXCHANGE
Australian Securities Exchange
Perth, Western Australia
ASX CODE
QUE
SHARE REGISTRY
Main Office
Advanced Share Registry Services
110 Stirling Highway
Nedlands, Western Australia 6009
Telephone:
Facsimile:
Email:
Investor Web:
(08) 9389 8033
(08) 9262 3723
admin@advancedshare.com.au
www.advancedshare.com.au
Visit www.queste.com.au for:
Market Announcements
Financial Reports
Corporate Governance
Forms
Email subscription
Sydney Office
Suite 8H, 325 Pitt Street
Sydney, New South Wales 2000
Telephone:
(02) 8096 3502
Victoria:
Queensland:
Telephone: (03) 9018 7102
Telephone: (07) 3103 3838
ANNUAL REPORT | 1
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
COMPANY UPDATE
SMALL HOLDING (UNMARKETABLE PARCEL) SHARE SALE FACILITY
On 6 October 2016, the Company initiated a ‘Small Holding (Unmarketable Parcel) Share Sale Facility’1 in respect
of small parcel shareholdings (also sometimes referred to as ‘unmarketable parcels’) valued at $500 or less.
Based on the Company’s then last sale share price on the ASX of 5.2 cents (as at the Record Date of 5 October
2016), a small holding under this facility constituted 9,615 or fewer shares. The Company’s share register had 77
(out of 239) shareholders holding a small holding and these holders held, in aggregate, 276,065 shares or 1.04%
of the Company’s total issued share capital (of 26,578,358 shares).
The Company’s Constitution2 provides a mechanism by which the Board may, with the agreement of the relevant
shareholder, aggregate small holdings and sell them on the shareholders' behalf thereby possibly achieving a
higher price for the shares than would have been possible had they been sold as individual small parcels. This
initiative allows for the full gross proceeds to be realised by shareholders of such small parcels without any
associated brokerage or selling costs (which will be borne by the Company).
This initiative will benefit the Company in terms of savings in maintenance costs in relation to share registry fees
and also printing, mail-out and postage costs. Furthermore, for some shareholders, the costs of selling their
small holdings may result in a proportionally high transaction cost compared to the gross proceeds of sale.
Those small holding shareholders as at the Record Date (5 October 2016) have until 5:00pm Perth time on
Wednesday, 23 November 2016 (the Due Date) to lodge a Share Retention Form to retain their shareholding in
the Company.
The Company will aggregate the small holdings of affected shareholders who have not lodged a Share Retention
Form by the Due Date and dispose of them as soon as practicable after that date, having regard to the liquidity of
the Company’s shares on ASX and market conditions.
The aggregated small holdings will be sold on-market with the Company bearing all brokerage and selling costs.
Once completed, affected small holders will receive a formal Sale Notice advising of the sale details along with a
proceeds cheque for their respective pro-rata share of the gross proceeds of sale (with payment sent to a
shareholder’s last recorded address) after all small holdings have been sold. Any tax consequences from the sale
will be the respective shareholder’s responsibility.
The Company refers to its ASX market announcement entitled “Small Holding (Unmarketable Parcel) Share Sale
Facility” dated 6 October 2016 for further details in relation to this capital management initiative.
28 October 2016
1 Refer Queste’s ASX announcement dated 6 October 2016: Small Holding (Unmarketable Parcel) Share Sale Facility
2 Clause 152 of the Company’s Constitution
ANNUAL REPORT | 2
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
DIRECTORS’ REPORT
The Directors present their report on Queste Communications Ltd ABN 58 081 688 164 (Company or QUE) and
its controlled entities (Queste or the Consolidated Entity) for the financial year ended 30 June 2016 (Balance
Date).
QUE 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. (ASX Code: QUE)
Queste’s results incorporate the results of controlled entity, ASX-listed investment company, Orion Equities
Limited ABN 77 000 742 843 (Orion or OEQ). The Company has a 59.86% (9,367,653 shares) shareholding
interest in Orion (30 June 2015: 59.06% (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 attributable to non-controlling interest
Loss after tax attributable to owners of the Company
Basic and diluted loss per share (cents)
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
2016
$
220,289
(1,117,019)
(896,730)
-
(896,730)
198,360
(698,370)
(2.35)
2015
$
328,312
(1,473,724)
(1,145,412)
89,501
(1,055,911)
311,722
(744,189)
(2.52)
2016
(2.35)
2015
(2.52)
29,693,976
29,502,441
The Company’s 5,770,000 (2015: 9,000,000) partly paid ordinary shares, to the extent that they have been paid
(1.5225 cents per share) have been included in the determination of the basic loss per share.
DIVIDENDS
No dividends have been paid or declared during the financial year.
ANNUAL REPORT | 3
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
DIRECTORS’ REPORT
FINANCIAL POSITION
CONSOLIDATED ENTITY
Cash
Current investments - equities
Investments in Associate entity
Property held for resale
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
2016
$
191,039
729,027
3,545,665
1,350,000
64,119
116,782
2,041,544
8,038,176
(116,782)
(259,013)
7,662,381
6,149,888
3,270,684
3,011,476
(4,769,667)
7,662,381
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
At the Balance Date, the Company has the following securities on issue:
(a)
(b)
26,578,358 listed fully paid ordinary shares (2015: 28,817,316 fully paid ordinary shares); and
5,770,000 unlisted partly paid ordinary shares3; each paid to 1.5225 cents with 18.4775 cents per partly
paid ordinary share outstanding (representing the equivalent of 439,241 voting shares4) (2015: 9,000,000
unlisted partly paid ordinary shares representing the equivalent of 685,125 voting shares),
making a total of 27,017,599 voting shares on issue (2015: 29,502,441 voting shares).
Save for the conversion of party paid shares (the subject of calls made by the Company as outlined below), there
were no securities issued or granted by the Company during or since the financial year.
Call and Conversion of Partly Paid Shares5
On 3 December 2015, there was a conversion of 900,000 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
$166,298 in total) due and payable in respect of these 900,000 partly paid shares.6
3 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 24 March 2016 and released on ASX on 31 March
2016
4
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
5 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 24 March 2016 and released on ASX on 31 March
2016
6 Refer Queste’s ASX announcement dated 11 December 2015: Appendix 3B – Application for Quotation of Additional Securities
ANNUAL REPORT | 4
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
DIRECTORS’ REPORT
On 30 June 2016, there was a conversion of 81,959 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 $15,143 in
total) due and payable in respect of these 81,959 partly paid shares7 - this call and conversion was at the limit of
the “3% creep in 6 months” exemption in Item 9 of section 611 of the Corporations Act.
Off-Market Equal Access Share Buy-Back Back
At the Company’s general meeting held on 17 March 2016, shareholders approved an equal access scheme share
buy-back of up to 100% of each shareholder’s shares in the Company (Buy-Back), subject to a maximum cost
to the Company of $300,000 (Buy-Back Cap).8
By way of background:
Queste, as part of a capital management programme for the benefit of shareholders, initiated an on-
market share buy-back in 2012/20139. This initiative met with little success and no shares were bought-
back, primarily due to the lack of liquidity in trading of Queste shares, based upon the application of ASX
Listing Rule 7.29 - this rule prescribes that an on-market buy-back may occur only if transactions in a
company’s shares were recorded on ASX on at least 5 days in the previous 3 months.
Queste reviewed the on-market share buy-back initiative and the liquidity issue and identified an equal
access buy-back scheme as an alternative capital management initiative to allow shareholders an
opportunity to realise their investment in the Company in an otherwise relatively illiquid market for Queste
shares.
At the Company’s 2013 annual general meeting (AGM) held on 28 November 2013, shareholders
approved an equal access scheme share buy-back of up to 100% of each shareholder’s shares in the
Company, subject to a maximum cost to the Company of $330,000.10 On 17 December 2013, a Share
Buy-Back Offer Booklet11 was despatched to eligible shareholders.
Under this buy-back (which closed on 21 January 201412):
587,563 fully paid shares were bought back for 10 cents per share, at a cost of $58,757; and
10,000,000 partly paid shares were bought back for 0.5 of a cent per share, at a cost of $50,000,
with the total cost of the buy-back being $108,757.
It was noted at this time that Queste may consider undertaking further/annual equal access scheme share
buy-backs depending on the Company’s financial position and the liquidity of trading in Queste Shares on
ASX at the relevant time.
There continues to be a lack of liquidity in trading of Queste shares and after a review of the Company’s
financial position, Queste determined to seek shareholder approval to conduct another equal access
scheme off-market share buy-back (the Buy-Back referred to above).
Queste believed that it was in the best interests of shareholders for the proposed Buy-Back to be put to
shareholders for approval and that it was appropriate to allow shareholders an opportunity to realise their
investment in the Company in an otherwise relatively illiquid market for Queste shares at a price (in
respect of the fully paid ordinary shares) at a premium to the current and recent Queste share price on
ASX. The proposed Buy-Back would also be a cost-effective mechanism for shareholders to dispose of
their interests as there would be no brokerage costs associated with tendering acceptances into the Buy-
Back.
7 Refer Queste’s ASX announcement dated 5 July 2016: Appendix 3B – Application for Quotation of Additional Securities
8 Refer Queste’s Information Memorandum (including the Notice of General Meeting, Explanatory Statement and Independent Expert’s Report)
dated 27 January 2016 and released on ASX on 12 February 2016 and Queste’s ASX announcement dated 17 March 2016: Results of 2016
General Meeting
9 Refer Queste’s ASX announcements dated 17 April 2012: Appendix 3C - Announcement of Buy-Back Notice and dated 1 May 2013: Appendix
3F Final Share Buy-Back Notice.
10 Refer Queste’s Information Memorandum (including the Notice of Annual General Meeting, Explanatory Statement and Independent Expert’s
Report) dated 23 October 2013 and released on ASX on 30 October 2013 and Queste’s ASX announcement dated 28 November 2013: Results
of 2013 Annual General Meeting.
11 Refer Queste’s Share Buy-Back Offer Booklet dated 11 December 2013 and released on ASX on 17 December 2013
12 Refer Queste’s ASX announcement dated 22 January 2014: Results of Equal Access Buy-Back and Appendix 3F – Final Share Buy-Back Notice
ANNUAL REPORT | 5
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
DIRECTORS’ REPORT
The record date for determining entitlements to participate in the Buy-Back was 24 March 2016 and on 31 March
2016, a Share Buy-Back Offer Booklet was despatched to eligible shareholders.
The Buy-Back was open to all shareholders on an equal basis. Participation by shareholders was entirely
voluntary, in whole or in part, in relation to their shareholding in the Company.
As the Buy-Back Price was set below the net tangible asset (NTA) backing of Queste, the NTA backing of the
Company has increased after completion of the Buy-Back. This benefits remaining shareholders or those
shareholders that only accepted the Company’s offer to buy back a portion of their shares.
Please refer to Queste’s Information Memorandum3 and Share Buy-Back Offer Booklet13 for further details on the
Buy-Back.
Under the Buy-Back (which closed on 26 May 2016):
(a)
the Company received acceptances totalling in excess of the Buy-Back Cap of $300,000 and a
proportionate scale-back had to be applied by reference to the value of the Buy-Back consideration in
respect of acceptances received (Scale-Back)14.
(b)
After the Scale-Back:
3,220,914 fully paid ordinary shares have been bought back for 9 cents per share, at a cost of
~$289,882; and
2,248,044 partly-paid ordinary shares have been bought back for 0.45 of a cent per share, at a
cost of ~$10,116,
with the total cost of the Buy-Back being ~$299,998.15
Queste may consider undertaking further/annual equal access scheme share buy-backs depending on the
Company’s financial position and the liquidity of trading in Queste shares on ASX shares at the relevant time.
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 59.86% of its issued ordinary share capital (2015:
9,367,653 shares and 58.90%). Orion has been recognised as a controlled entity and included as part of
the Queste’s results since 1 July 2002.
Queste shareholders are advised to refer to the 30 June 2016 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.
13 Refer Queste’s Share Buy-Back Offer Booklet dated 24 March 2016 and released on ASX on 31 March 2016
14 Refer Queste’s ASX announcement dated 26 May 2016: Close of Equal Access Scheme Share Buy-Back Offer and also refer Section 2.3.3 (on
page 7) of the Share Buy-Back Offer Booklet
15 Refer Queste’s ASX announcements dated 30 May 2016: Results of Completion of Equal Access Share Buy-Back and dated 30 May 2016: ASX
Appendix 3F – Final Share Buy-Back Notice
ANNUAL REPORT | 6
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
DIRECTORS’ REPORT
1.2. Orion’s Portfolio Details as at 30 June 2016
Asset Weighting
Australian equities
Agribusiness 16
Property held for development and resale
Net tax liabilities (current-year and deferred tax assets/liabilities)
Net cash/other assets and provisions
TOTAL
% of Net Assets
2016
55%
27%
18%
-
<1%
100%
2015
58%
25%
17%
-
<1%
100%
Major Holdings in Securities Portfolio
Equities
Bentley Capital Limited
Strike Resources Limited
CBG Australian Equities Fund (Wholesale) (CBG Fund)
Other ASX listed securities
TOTAL
Fair Value
$’million
% of
Net Assets
ASX
Code
Industry Sector
Exposures
2.77
0.40
0.27
0.06
36.91%
5.33%
3.55%
BEL
SRK
N/A
Diversified Financials
Materials
Diversified
0.75% Various
Various
3.50
46.54%
1.3. Orion’s On-Market Share Buy-Backs
During the financial year, Orion bought back 211,300 shares on-market at a total cost of $46,686 and at
an average buy-back cost (including brokerage) of $0.221 per share, pursuant to an on-market share buy-
back announced on 5 June 201517.
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 27.20% (20,513,783 shares) of Bentley’s issued ordinary share capital with Queste holding
1.72% (1,300,000 shares) of Bentley’s issued ordinary share capital (2015: Orion held 20,513,783 shares
(27.42%) and Queste held 1,740,625 shares (2.33%)).
Bentley’s asset weighting as at 30 June 2016 was 89% Australian equities (2015: 95.2%), 3.7% intangible
assets (2015: 3.9%) and 7.3% net cash/other assets (2015: 0.9%).
Bentley had net assets of $16.29 million as at 30 June 2016 (2015: $16.43 million) and incurred an after-
tax net profit of $0.526 million for the financial year (2015: after-tax net loss of $0.267 million).
Bentley paid two 0.50 cent fully franked dividends that were distributed in September 2015 and March
2016 at a total cost of $0.749 million (2015 distributions: a 0.95 cent and a 0.50 cent fully franked
dividends, totaling $1.111 million).
Orion received $205,138 distributions from Bentley during the financial year (2015: $307,707).
Queste received $17,406 distributions from Bentley during the financial year (2015: $26,108).
16 Agribusiness net assets include olive grove land, olive trees, buildings and plant and equipment.
17 Refer Orion’s ASX announcements dated 5 June 2015: Appendix 3C – Announcement of Buy-Back and 31 May 2016: Appendix 3F - Final
Share Buy-Back Notice
ANNUAL REPORT | 7
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
DIRECTORS’ REPORT
Subsequent to 30 June 2016, Bentley announced its intention to pay a fully-franked dividend of 0.50 cent
per share. Orion’s and Queste’s entitlement from the fully franked dividend is expected to be $102,569
and $6,500 respectively.
Bentley has a long distribution track record, as illustrated below:
Rate per share
0.50 cent
0.50 cent
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
Nature
Dividend
Dividend
Dividend
Dividend
Dividend
Dividend
Return of capital
Return of capital
Return of capital
Return of capital
Return of capital
Dividend (Special)
Dividend
Queste’s Entitlement
$6,500
$8,703
$8,703
$9,573
$16,535
$17,406
$17,406
$17,406
$17,406
$17,406
$87,031
$41,775
$17,406
Orion’s Entitlement
$102,569
$102,569
$102,569
$112,826
$194,881
$205,138
$205,138
$205,138
$205,138
$205,138
$1,025,689
$492,331
$205,138
Payment Date
29 September 2016
18 March 2016
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
Note:
Bentley has paid a distribution to shareholders every year (save on 4 occasions in its 31 year history) since its admission to ASX
in 1986. Refer to Bentley’s website for full distribution history
Shareholders are advised to refer to the 30 June 2016 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) owns the high grade Apurimac Magnetite Iron Ore Project and Cusco
Magnetite Iron Ore Project in Peru and retains cash reserves of ~$7 million (as at 30 June 2016). Strike
has announced that it has examined a range of new strategies for the company in light of the on-going
poor outlook for the iron ore sector – for further information, refer to Strike’s 2016 Full Year Report.18
On 2 September 2015, Bentley successfully closed its off-market 5.5 cent per share cash takeover bid19 for
Strike with acceptances received totaling 52,553,493 Strike shares (36.16%20), making Bentley the largest
shareholder.
Orion accepted into the Strike bid in respect of 6,690,802 Strike shares and received the bid consideration
of $367,994 on 14 September 2015.
Orion retains 10,000,000 Strike shares (6.88%) (30 June 2015: 16,690,802 shares (11.48%)). Inclusive
of Bentley’s relevant interest in Strike (above), Orion has a relevant interest in 62,553,493 Strike shares
(43.041%21).
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”.
18 Refer Strike’s 2016 Full Year Report released on ASX on 31 August 2016
19 Refer Bentley’s ASX Announcement dated 31 July 2015: Despatch of Bidders Statement to Holders of Strike Resources Limited
20 Refer Bentley’s ASX announcement dated 31 August 2015: Notice of Change in Interests of Substantial Holder in Strike
21 Refer Orion’s Change in Substantial Holding Notice dated 4 September 2016
ANNUAL REPORT | 8
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
DIRECTORS’ REPORT
(c) Other Assets
Orion also owns:
a 143 hectare commercial olive grove operation (currently on care and maintenance) with
approximately 64,500, 17 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.
2.
Queste’s Other Assets
In addition to the investment in controlled entity, Orion, Queste has:
(a)
(b)
(c)
a direct share investment in Associate entity, Bentley, being 1,300,000 shares (or 1.72% of
Bentley’s issued ordinary share capital) (2015: 1,740,625 shares and 2.33%);
other investments of $6,582 (2015: $361,227); and
a cash holding of $112,251 (2015: $128,998).
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.
ANNUAL REPORT | 9
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
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 5,344,872 shares22
Other current directorships
in listed entities
(1)
(2)
Executive Chairman of Bentley Capital Limited (ASX:BEL) (since 2 December 2003)
Executive Chairman of Orion Equities Limited (ASX:OEQ) (since 23 October 2006)
(3)
Chairman (appointed 18 December 2015) of Strike Resources Limited (ASX:SRK) (Director
since 1 October 2015)
Former directorships in
other listed entities in past
3 years
None
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 shares23
Other current positions
held in listed entities
(1)
(2)
Executive Director and Company Secretary of Orion Equities Limited (ASX:OEQ)
(Secretary since 2 August 2000 and Director since 4 July 2003)
Director and Company Secretary of Strike Resources Limited (ASX:SRK) (Director since
24 January 2014 and Company Secretary since 1 October 2015)
(3)
Company Secretary of Bentley Capital Limited (ASX:BEL) (since 5 February 2004)
Company Secretary of Alara Resources Limited (ASX:AUQ) (4 April 2007 to 31 August 2015)
Former positions in other
listed entities in past 3
years
22 Refer Farooq Khan’s Change of Director’s Interest Notice dated 7 June 2016
23 Refer Victor Ho’s Initial Director’s Interest Notice dated 3 April 2013
ANNUAL REPORT | 10
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
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 shares24
Other current directorships in
listed entities
Non-Executive Director of Orion Equities Limited (ASX: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.
At the Company’s 2015 AGM25:
Yaqoob Khan retired as a Director (by rotation) pursuant to the Company’s Constitution and was re-
elected a Director at that AGM.
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
12
12
12
12
12
12
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 Queste’s activities, matters typically dealt with by an Audit or Remuneration
Committee are dealt with by the full Board.
24 Refer Yaqoob Khan’s Change of Director’s Interest Notice dated 6 September 2011
25 Refer Queste’s ASX announcement dated 12 November 2015: Results of 2015 Annual General Meeting
ANNUAL REPORT | 11
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
REMUNERATION REPORT
This Remuneration 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 Queste.
The information provided under headings (1) to (5) below has been audited for compliance with section 300A of
the Corporations Act 2001 (Cth) as required under section 308(3C).
(1) Remuneration Policy
The Board determines the remuneration structure of all Key Management Personnel having regard to the
Company’s strategic objectives, scale and scope of operations and other relevant factors, including
experience and qualifications, length of service, the duties and accountability of Key Management
Personnel, the frequency of Board meetings, market practice (including available data concerning
remuneration paid by other listed companies and in particular, companies of comparable size and nature)
and the objective of maintaining a balanced Board which has appropriate expertise and experience, at a
reasonable cost to the Company.
Corporate Governance Principles: The Company’s Corporate Governance Statement (CGS) also
addresses matters pertaining to the Board, Senior Management and Remuneration. The latest version of
the CGS may be downloaded from the Company’s website: http://queste.com.au/corporate-governance
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 $75,00024 per
annum inclusive of minimum employer superannuation contributions where applicable, to be divided as
the Board determines appropriate.
The Board has determined the following fixed cash remuneration for current Key Management Personnel
during the year as follows:
(1) Mr Farooq Khan (Executive Chairman and Managing Director) - a base salary of $31,250 (previously
voluntarily reduced from $62,500 to $31,250 (with effect on 1 April 2016) and from $125,000 to
$62,500 (with effect on 1 April 2013) to assist the Company in reducing its corporate overheads)
per annum plus employer superannuation contributions.
(2) Mr Victor Ho (Executive Director and Company Secretary) - a base salary of $22,500 (previously
voluntarily reduced from $45,000 to $22,500 (with effect on 1 April 2016) to assist the Company in
reducing its corporate overheads) per annum plus employer superannuation contributions. Mr Ho
also agreed to join the Board as an Executive Director on 3 April 2013 at no further cost to the
Company; and
(3) 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 reimbursement of all travelling, hotel and other expenses reasonably incurred by a
Director for the purpose of attending meetings of the Board or otherwise in and about the business
of the Company; and
In respect of Non-Executive Directors, payment for the performance of extra services or the making
of special exertions for the benefit of the Company (at the request of and with the concurrence of
the Board).
Short-Term Benefits: The Company does not have any short-term incentive (STI) cash bonus schemes
(or equivalent) in place for Key Management Personnel.
24 As approved by shareholders at the Annual General Meeting held on 30 November 1999; refer Queste’s ASX announcement dated 30
November 1999: Results of Annual General Meeting of Shareholders
ANNUAL REPORT | 12
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
REMUNERATION REPORT
Long-Term Benefits: Other than early termination benefits disclosed in ‘Employment Agreement’ below,
Key Management Personnel have no right to termination payments save for payment of accrued unused
annual and long service leave (where applicable) (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. The Company notes that shareholder approval is required where a Company
proposes to make a “termination payment” (for example, a payment in lieu of notice, a payment for a
post-employment restraint and payments made as a result of the automatic or accelerated vesting of
share based payments) in excess of one year’s “base salary” (defined as the average base salary over the
previous 3 years) to a director or any person who holds a managerial or executive office.
Performance-Related Benefits and Financial Performance of Company: 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.
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.
2016
2015
2014
2013
2012
Loss Before Income Tax ($)
(896,730)
(1,055,911)
(1,209,082)
(3,453,436)
(5,366,862)
Basic Earnings/(Loss) per Share (cents)
(2.35)
(2.52)
(5.24)
(6.73)
(9.85)
Dividends Paid ($)
VWAP Share Price on ASX for financial year ($)
Closing Bid Share Price at 30 June ($)
-
0.07
0.05
-
0.00
0.06
-
0.14
0.14
-
0.09
0.09
-
0.11
0.10
(2) Employment Agreement
Details of the material terms of an employment agreement entered by the Company with a Key
Management Personnel are as follows:
Key
Management
Personnel and
Position(s) Held
Victor Ho
Company
Secretary (since 30
August 2000)
Executive Director
(since 3 April
2013)
Relevant
Date(s)
Base
Salary/Fees per
annum
Other Material Terms
25 January 2000
(date of
employment
agreement)
2009/2010
(date of effect
of current
remuneration)
$45,000
The agreement has no fixed term or fixed rolling
plus employer
superannuation
contributions
(currently 9.5%
of base salary)
terms of service.
Standard annual leave (20 days) and personal/sick
leave (10 days paid) entitlements plus entitlement to
long service leave of 60 days after 7 years of service
with an additional 5 days after each year of service
thereafter.
One month’s notice of termination by the Company
or employee. Immediate termination without notice
if employee commits any serious act of misconduct.
ANNUAL REPORT | 13
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
REMUNERATION REPORT
The Company does not presently have formal service agreements or employment agreements with any
other Key Management Personnel.
(3) 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
2016
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
$
51,562
38,074
15,000
-
-
-
5,149
3,741
-
Long
service
leave
$
2,644
-
-
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
-
-
Equity
Based
Shares &
Options
$
-
-
-
Equity
Based
Shares &
Options
$
-
-
-
Total
$
59,355
41,815
15,000
Total
$
66,858
49,275
15,000
Paid by Orion to Key Management Personnel (who are also KMP of Queste)
2016
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
2015
-
-
-
206,618
78,562
25,000
-
-
-
19,629
7,481
-
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
-
-
Long
service
leave
$
-
-
-
Equity
Based
Shares &
Options
$
Total
$
-
-
-
226,247
86,043
25,000
Equity
Based
Shares &
Options
$
Total
$
-
-
-
262,826
82,125
29,000
*
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 | 14
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
REMUNERATION REPORT
Victor Ho is also Company Secretary of Queste and 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 Queste and Orion during the financial year.
(4) 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.
(5)
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.
(6)
Shares held by Key Management Personnel
The number of ordinary shares in the Company held by Key Management Personnel is set below:
Key Management Personnel
Executive Directors:
Farooq Khan
Victor Ho
Non-Executive Director:
Yaqoob Khan
Balance at
30 June 2015 Additions
Received as part
of remuneration
Disposals
Balance at 30
June 2016
6,168,044
17,500
68,345
-
-
-
-
-
-
(555,072)25
-
5,612,972
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).
(7) Voting and Comments on the Remuneration Report at the 2015 AGM
At the Company’s most recent (2015) AGM, a resolution to adopt the prior year (2015) Remuneration
Report was put to the vote and passed unanimously on a show of hands with the proxies received also
indicating majority 86.15%) support in favour of adopting the Remuneration Report.26 No comments were
made on the Remuneration Report that was considered at the AGM.
This concludes the audited Remuneration Report.
25 Refer Farooq Khan’s Change of Director’s Interest Notice dated 7 June 2016
26 Refer Queste’s ASX announcement dated 12 November 2015: Results of 2015 Annual General Meeting
ANNUAL REPORT | 15
30 JUNE 2016
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 2001
(Cth)) (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 2001 (Cth)), 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 2001 (Cth)); and
Subject to the terms of the deed and the Corporations Act 2001 (Cth), 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.
AUDITORS
The Company has changed its Auditors from BDO to Rothsay Auditing (a firm of Chartered Accountants with
offices in Perth and Sydney), with effect on 12 February 2016.27 The transition of Auditors occurred as part of a
review of the Company’s corporate administration costs – Rothsay was selected after considering proposals
received from BDO and a number of other audit firms. Rothsay will hold office as Auditor until the next annual
general meeting of the Company, at which time shareholder approval will be sought for their re-appointment and
continuation as Auditor.
Details of the amounts paid or payable to the Auditors for audit and non-audit services (tax services) provided
during the financial year are set out below:
Auditor
Consolidated Entity
Non-Audit
Services
Audit &
Review
Fees
$
$
-
Total
$
Audit &
Review
Fees
$
36,000
14,000
Rothsay Auditing
BDO Audit (WA) Pty Ltd
BDO Corporate Finance (WA) Pty Ltd
36,000
-
-
3,451
3,451
12,565
12,565
-
-
27 Refer Queste’s ASX announcement dated 12 February 2016: Change of Auditors
Company
Non-Audit
Services
$
-
-
Total
$
14,000
-
12,565
12,565
ANNUAL REPORT | 16
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
DIRECTORS’ REPORT
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 2001 (Cth). 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.
Rothsay Auditing continues in office in accordance with section 327B of the Corporations Act 2001 (Cth).
AUDITORS’ INDEPENDENCE DECLARATION
A copy of the Auditor’s Independence Declaration as required under section 307C of the Corporations Act 2001
(Cth) forms part of this Directors Report and is set out on page 18. 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 27, 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 2016
Victor Ho
Company Secretary
ANNUAL REPORT | 17
30 JUNE 2016
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 2016
Note
2
3
5
Revenue
Other
Share of net profit of Associate entity
Net gain on financial assets at fair value through profit or loss
Reversal of Impairment - olive grove assets
Other revenue
Total revenue
Expenses
Net loss on financial assets at fair value through profit or loss
Share of net loss of Associate entity
Olive grove operation expenses
Land operation expenses
Personnel expenses
Occupancy expenses
Corporate expenses
Finance expenses
Administration expenses
Loss before income tax
Income tax expense
Loss for the year
Other comprehensive income
Revaluation of assets, net of tax
Total comprehensive loss for the year
Loss attributable to:
Owners of Queste Communications Ltd
Non-controlling interest
Total comprehensive income for the year is attributable to:
Owners of Queste Communications Ltd
Non-controlling interest
2016
$
55,604
163,526
-
-
1,159
220,289
(78,076)
-
(60,763)
(15,156)
(655,039)
(56,666)
(53,815)
(4,180)
(193,324)
(896,730)
2015
$
80,289
-
142,374
101,296
4,353
328,312
-
(80,044)
(71,808)
(147,217)
(792,986)
(69,339)
(51,561)
(4,381)
(256,388)
(1,145,412)
-
(896,730)
89,501
(1,055,911)
-
(896,730)
208,836
(847,075)
(698,370)
(198,360)
(896,730)
(744,189)
(311,722)
(1,055,911)
(698,370)
(198,360)
(896,730)
(535,353)
(311,722)
(847,075)
Basic and diluted loss per share (cents) attributable to
the ordinary equity holders of the Company
6
(2.35)
(2.52)
The accompanying notes form part of these consolidated financial statements
ANNUAL REPORT | 19
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
as at 30 June 2016
Current assets
Cash and cash equivalents
Financial assets at fair value through profit or loss
Receivables
Other current assets
Total current assets
Non current assets
Receivables
Property held for development or resale
Investment in Associate entity
Property, plant and equipment
Olive trees
Deferred tax asset
Total non current assets
Total assets
Current liabilities
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
7
8
11
11
12
22
13
14
5
15
16
2016
$
191,039
729,027
42,345
7,865
2015
$
269,805
1,523,346
13,171
8,417
970,276
1,814,739
21,774
1,350,000
3,545,665
1,968,179
65,500
116,782
57,120
1,350,000
3,705,212
2,010,752
65,500
216,374
7,067,900
7,404,958
8,038,176
9,219,697
151,617
107,396
161,957
117,010
259,013
278,967
5
116,782
216,374
116,782
216,374
375,795
495,341
7,662,381
8,724,356
6,149,888
3,270,684
(4,769,667)
4,650,905
6,268,445
3,200,408
(4,057,596)
5,411,257
3,011,476
3,313,099
7,662,381
8,724,356
17
18
19
The accompanying notes form part of these consolidated financial statements
ANNUAL REPORT | 20
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
for the year ended 30 June 2016
Issued capital
$
Reserves
$
Accumulated
losses
$
Non-
controlling
interest
$
Total
$
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
Balance at 1 July 2015
6,268,445
3,200,408
(4,057,596)
3,313,099
8,724,356
Loss for the year
Profit reserve transfer
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
-
-
-
-
-
13,701
-
(698,370)
(13,701)
-
(198,360)
-
-
(896,730)
-
-
13,701
(712,071)
(198,360)
(896,730)
-
(299,998)
181,441
56,575
-
-
-
-
-
(103,263)
-
-
(46,688)
(299,998)
181,441
Balance at 30 June 2016
6,149,888
3,270,684
(4,769,667)
3,011,476
7,662,381
The accompanying notes form part of these consolidated financial statements
ANNUAL REPORT | 21
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
CONSOLIDATED STATEMENT
OF CASH FLOWS
for the year ended 30 June 2016
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
Note
2016
$
2015
$
46,491
227,047
5,769
(1,003,389)
(48)
973,442
(156,671)
65,736
340,754
11,968
(1,201,380)
(140)
509,824
(718,376)
92,641
(991,614)
Net cash (used in)/provided by discontinued operations
-
9,369
Net cash used in operating activities
92,641
(982,245)
Cash flows from investing activities
Proceeds from sale of olive oil operations
Purchase of plant and equipment
-
(6,164)
101,994
(9,068)
Net cash provided by/(used in) investing activities
(6,164)
92,926
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
(299,998)
181,441
(46,686)
-
-
(10,495)
(165,243)
(10,495)
Net increase /(decrease) in cash held
(78,766)
(899,814)
Cash and cash equivalents at beginning of financial year
269,805
1,169,619
Cash and cash equivalents at end of financial year
7
191,039
269,805
The accompanying notes form part of these consolidated financial statements
ANNUAL REPORT | 22
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2016
1.
ABOUT THIS REPORT
1.1
Background
financial report covers
This
financial
statement of the consolidated entity consisting of Queste
Communications Ltd, its subsidiary and investment in its
associate (the Consolidated Entity or Queste). The
financial report is presented in the Australian currency.
the consolidated
Queste Communications Ltd (the Company) is a company
limited by shares, incorporated in Western Australia, Australia
and whose shares are publicly traded on the Australian
Securities Exchange (ASX).
These financial statements have been prepared on a
streamlined basis where key information is grouped together
for ease of understanding and readability. The notes include
information which is required to understand the financial
statements and is material and relevant to the operations,
financial position and performance of the Consolidated Entity.
Information is considered material and relevant if, for
example:
(a)
(b)
(c)
(d)
the amount in question is significant because of its
size or nature;
(e)
it is important for understanding the results of the
Consolidated Entity;
it helps to explain the impact of significant changes in
the Consolidated Entity’s business – for example,
acquisitions; or
it relates to an aspect of the Consolidated Entity’s
future
important
operations
performance.
that
its
to
is
The notes are organised into the following sections:
(a)
line
Key Performance: Provides a breakdown of the key
individual
of
comprehensive income that the Directors consider
most relevant to understanding performance and
shareholder returns for the year:
statement
items
the
in
Notes
2
3
4
5
6
Revenue
Expenses
Segment information
Income tax
Loss per share
(b)
Financial Risk Management: Provides information
about
the Consolidated Entity’s exposure and
management of various financial risks and explains
how these affect the Consolidated Entity’s financial
position and performance:
Notes
7
8
9
10
Cash and cash equivalents
Financial assets at fair value through
profit or loss
Financial risk management
Fair value measurement of financial
instruments
(c)
Other Assets and Liabilities: Provides information
on other balance sheet assets and liabilities that do
not materially affect performance or give rise to
material financial risk:
Notes
11
12
13
14
15
16
Receivables
Property held for resale
Property, plant and equipment
Olive trees
Payables
Provisions
(d)
Capital Structure: This section outlines how the
Consolidated Entity manages its capital structure and
related financing costs, as well as capital adequacy
and reserves. It also provides details on the dividends
paid by the Company:
Notes
17
18
19
Issued capital
Reserves
Non-controlling interest
Consolidated Entity Structure: Provides details
and disclosures relating to the parent entity of the
Consolidated Entity, controlled entities, investments in
associates and any acquisitions and/or disposals of
businesses in the year. Disclosure on related parties is
also provided in the section:
Notes
20
21
22
23
Parent entity information
Investment in controlled entity
Investment in associate entity
Related party transactions
(f)
Other: Provides information on items which require
disclosure to comply with Australian Accounting
Standards and other regulatory pronouncements
however,
in
understanding the financial performance or position
of the Consolidated Entity:
considered
significant
are not
Notes
24
25
26
27
Auditors' remuneration
Commitments
Contingencies
Events occurring after the reporting
period
Significant and other accounting policies that summarise the
measurement basis used and presentation policies and are
relevant to an understanding of the financial statements are
provided throughout the notes to the financial statements.
ANNUAL REPORT | 23
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2016
1.2. Basis of preparation
1.6.
Impairment of Assets
These general purpose financial statements have been
prepared in accordance with Australian Accounting Standards,
the Australian
other authoritative pronouncements of
Accounting
Accounting
Board,
Interpretations and the Corporations Act 2001 (Cth), as
appropriate for for-profit entities.
Standards
Australia
Compliance with IFRS
The consolidated financial statements of the Consolidated
Entity also comply with International Financial Reporting
Standards (IFRS) as issued by the International Accounting
Standards Board (IASB).
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.
1.3.
Principles of Consolidation
The consolidated financial statements incorporate the assets
and liabilities of the subsidiary of Queste Communications Ltd
as at 30 June 2016 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.
The controlled entity has 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.
1.4. Comparative Figures
Certain comparative figures have been adjusted to conform to
changes in presentation for the current financial year.
1.5. Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the
amount of GST, except where the amount of GST incurred is
not recoverable from the Australian Tax Office. In 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.
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.
ANNUAL REPORT | 24
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2016
1.7. 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.
Application date
Annual reporting periods
beginning on or after 1
January 2018
AASB
reference
AASB 9
Title and
Affected
Standard(s)
Financial
Instruments
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
liabilities.
requirements
for
financial assets and
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
Annual periods
beginning on or after 1
January 2016
AASB 2015-
1
Amendments to
Australian
Accounting
Standards -
Annual
Improvements
to Australian
Accounting
Standards 2012-
2014 Cycle
ANNUAL REPORT | 25
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2016
1.7.
Summary of Accounting Standards Issued but not yet Effective (continued)
AASB
reference
AASB 2014-9
Title and
Affected
Standard(s)
Amendments to
Australian Accounting
Standards - Equity
Method in Separate
Financial Statements
AASB 2014-10 Amendments to
Australian Accounting
Standards – Sale or
Contribution of Assets
between an Investor
and its Associate or
Joint Venture
IFRS 15
Revenue from contracts
with customers
Nature of Change
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.
Application date
Annual periods
beginning on or after
1 January 2016
Annual periods
beginning on or after
1 January 2018
AASB 2014-10 amends AASB 10 Consolidated Financial
Statements and AASB 128 to address an inconsistency
between the requirements in AASB 10 and those in AASB
in dealing with the sale or
128 (August 2011),
contribution of assets between an investor and its
associate or joint venture. The amendments require:
A full gain or loss to be recognised when a
transaction involves a business (whether it is housed
in a subsidiary or not)
A partial gain or loss to be recognised when a transaction
involves assets that do not constitute a business, even if
these assets are housed in a subsidiary.
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
AASB 16
Leases
The key features of AASB 16 are as follows:
Lessee accounting
Lessees are required to recognise assets and
liabilities for all leases with a term of more than 12
months, unless the underlying asset is of low value.
Annual reporting
periods beginning on
or after 1 January
2019
A lessee measures right-of-use assets similarly to
liabilities
other non-financial assets and
similarly to other financial liabilities.
lease
includes
Assets and liabilities arising from a lease are initially
measured on a present value basis. The
measurement
lease
payments (including inflation-linked payments), and
also includes payments to be made in optional
periods if the lessee is reasonably certain to exercise
an option to extend the lease, or not to exercise an
option to terminate the lease.
non-cancellable
AASB 16 contains disclosure requirements for lessees.
ANNUAL REPORT | 26
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2016
2. REVENUE
The Consolidated Entity's operating loss before income tax includes the following items of revenue:
Revenue
Rental revenue
Dividend revenue
Interest revenue
Other
Share of net profit of Associate entity
Net gain on financial assets at fair value through profit or loss
Reversal of impairment - olive grove assets
Other revenue
2016
$
44,200
5,635
5,769
55,604
163,526
-
-
1,159
220,289
2015
$
44,200
24,121
11,968
80,289
-
142,374
101,296
4,353
328,312
Accounting policy
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:
(a) Sale of financial assets, goods and other assets
Revenue from the sale of financial assets, goods or other assets is recognised when the Consolidated
Entity has passed control of the financial assets, goods or other assets to the buyer.
(b) Interest revenue
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to
the financial assets.
(c) Dividend revenue
Dividend revenue is recognised when the right
Consolidated Entity brings dividend revenue to account on the applicable ex-dividend entitlement date
to receive a dividend has been established. The
(d) Other revenues
Other revenues are recognised on a receipts basis.
3.
EXPENSES
The Consolidated Entity's operating loss before income tax includes the following items of expenses:
Net loss on financial assets at fair value through profit or loss
Share of net loss of Associate entity
Olive grove operations
Depreciation of olive grove assets
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
2016
$
78,076
-
41,071
19,692
-
15,156
655,039
56,666
4,180
34,166
13,423
6,226
2015
$
-
80,044
51,602
20,206
140,000
7,217
792,986
69,339
4,381
34,308
12,673
4,580
ANNUAL REPORT | 27
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2016
3.
EXPENSES (continued)
Administration expenses
Professional fees
Audit fees
Legal fees
Depreciation
Other administration expenses
4.
SEGMENT INFORMATION
2016
Segment revenues
Revenue
Other
Total segment revenues
Personnel expenses
Finance expenses
Administration expenses
Depreciation expenses
Other expenses
Total segment profit/(loss)
Investments
$
55,604
163,526
219,130
-
-
-
-
94,375
124,755
2016
$
2015
$
35,532
34,800
24,954
7,666
90,372
1,117,019
51,561
68,823
42,747
9,785
83,472
1,473,724
Total
$
55,604
164,685
220,289
655,039
4,811
138,422
48,738
270,009
(896,730)
191,039
729,027
1,350,000
3,545,665
1,968,179
254,266
8,038,176
-
1,159
1,159
655,039
4,897
130,347
7,667
163,931
(960,722)
187,922
-
-
-
26,820
188,127
402,869
Olive grove
$
Corporate
$
-
-
-
-
(86)
8,075
41,071
11,703
(60,763)
Segment assets
Cash and cash equivalents
Financial assets
Property held for development or resale
Investment in associate
Property, plant and equipment
Other assets
Total segment assets
-
729,027
1,350,000
3,545,665
-
-
5,624,692
3,117
-
-
-
1,941,359
66,139
2,010,615
2015
Segment revenues
Revenue
Other
Total segment revenues
Personnel expenses
Finance expenses
Administration expenses
Depreciation expenses
Other expenses
Total segment profit/(loss)
80,289
142,374
222,663
-
-
-
-
236,999
(14,336)
-
101,296
101,296
2,811
313
3,508
51,602
13,574
29,488
4,353
-
4,353
84,642
243,670
328,312
792,986
4,572
186,057
13,431
167,871
(1,160,564)
795,797
4,885
189,565
65,033
418,444
(1,145,412)
Segment assets
Cash and cash equivalents
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
ANNUAL REPORT | 28
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2016
4.
SEGMENT INFORMATION (continued)
Accounting policy
The operating segments are reported in a manner consistent with the internal reporting provided to the "Chief
Operating Decision Maker" (CODM). The Consolidated Entity's CODM is the Board of Directors who are
responsible for allocating resources and assessing performance of the operating segments.
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.
Description of segments
(a)
Investments comprise of equity investments of companies listed on the Australian Securities Exchange
(ASX) and liquid financial assets;
(b) Olive grove is in relation to the olive grove farm in Gingin;
(c)
Corporate items are mainly comprised of corporate assets, office expenses and income tax assets and
liabilities.
Liabilities
Liabilities are not reported to the CODM by segment. All liabilities are assessed at a consolidated entity level.
5.
INCOME TAX
The components of tax expense comprise:
Current tax
Deferred tax
(a)
The prima facie tax on operating loss before income tax is
reconciled to the income tax as follows:
Prima facie tax payable on operating loss before income tax at 28.5%
(2015: 30%)
Adjust tax effect of:
Other assessable income
Non-deductible expenses
Share of net (profit)/loss of Associate entity
Current year tax losses not brought to account
Income tax attributable to entity
(b) Deferred tax assets
Employee benefits & accruals
Fair value losses
Deferred tax liabilities
Fair value gains
Other
(i) Movements - deferred tax assets
At 1 July 2014
Credited/(charged) to the profit and loss
At 30 June 2015
At 1 July 2015
Credited/(charged) to the profit and loss
At 30 June 2016
2016
$
-
-
-
2015
$
-
(89,501)
(89,501)
(255,568)
(343,624)
92,699
11,432
(46,605)
198,042
-
43,515
73,267
116,782
116,782
-
116,782
Fair value
losses
$
38,205
124,279
162,484
143,876
13,300
24,013
72,934
(89,501)
53,890
162,484
216,374
216,374
-
216,374
Total
$
98,657
117,717
216,374
216,374
(99,592)
116,782
Employee
benefits
$
60,452
(6,562)
53,890
53,890
(10,375)
43,515
162,484
(89,217)
73,267
ANNUAL REPORT | 29
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2016
5.
INCOME TAX EXPENSE (continued)
(ii) Movements - deferred tax liabilities
At 1 July 2014
Charged/(Credited) to the profit and loss
Charged to equity
At 30 June 2015
At 1 July 2015
Charged/(Credited) to the profit and loss
At 30 June 2016
Fair value
gains
$
97,631
29,242
89,501
216,374
216,374
(99,592)
116,782
(iii)
Deferred tax recognised directly in Other Comprehensive
Income
Revaluations of land & intangible assets
Unrecognised deferred tax balances
Unrecognised deferred tax asset - revenue losses
Unrecognised deferred tax asset - capital losses
Unrecognised deferred tax asset - timing differences
Other
$
1,026
(1,026)
-
-
-
-
-
-
Total
$
98,657
28,216
89,501
216,374
216,374
(99,592)
116,782
(89,501)
3,888,490
35,241
1,399,976
5,323,707
3,580,204
35,241
1,249,845
4,865,290
Critical accounting judgement and estimate
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.
Accounting policy
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
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 Company 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.
ANNUAL REPORT | 30
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2016
5.
INCOME TAX EXPENSE (continued)
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.
6.
LOSS PER SHARE
Basic and diluted loss per share (cents)
2016
2015
(2.35)
(2.52)
The following represents the loss and weighted average number of shares
used in the loss per share calculations:
Loss after income tax attributable to Owners of Queste Communications Ltd
($)
Weighted average number of ordinary shares
(698,370)
Number of shares
(744,189)
29,693,976
29,502,441
Accounting policy
Basic earnings/loss 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/loss per share adjusts the figures used in the determination of basic earnings/loss per share
by taking into account amounts unpaid on ordinary shares and any reduction in earnings/loss per share that will
probably arise from the exercise of options outstanding during the financial period.
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.
7.
CASH AND CASH EQUIVALENTS
Cash at bank
2016
$
191,039
2015
$
269,805
Accounting policy
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 | 31
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2016
7.
CASH AND CASH EQUIVALENTS (continued)
Reconciliation of operating loss after income tax to net cash used
in operating activities
Loss after income tax
Add 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 (profit)/loss of Associate entity
Changes in assets and liabilities:
Financial assets at fair value through profit or loss
Receivables
Other current assets
Investment in Associate entity
Payables
Provisions
Deferred tax
8.
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
Listed securities at fair value
Unlisted managed fund at fair value
2016
$
2015
$
(896,730)
(1,055,911)
48,737
-
78,076
-
-
(163,526)
716,242
6,172
552
323,073
(10,340)
(9,615)
-
92,641
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)
462,777
266,250
729,027
1,001,185
522,161
1,523,346
Accounting policy
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, financial assets at fair value
through profit and loss 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) will recognise its 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.
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 sheet date which is the
current bid price. The fair value of the unlisted managed fund is determined from unit price information
provided by investment manager. The Consolidated Entity’s investment portfolio is accounted for as a “financial
assets at fair value through profit and loss” and is carried at fair value.
9.
FINANCIAL RISK MANAGEMENT
The Consolidated Entity's financial
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 Note 8). The
Consolidated Entity's investments are subject to market (which includes interest rate and price risk), credit and
liquidity risks.
instruments
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
ANNUAL REPORT | 32
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2016
9.
FINANCIAL RISK MANAGEMENT (continued)
The financial receivables and payables of the Consolidated Entity in the table below are due or payable within
30 days. The financial
investments are held for trading and are realised at the discretion of the Board of
Directors.
The Consolidated Entity holds the following financial assets and liabilities:
Cash and cash equivalents
Financial assets at fair value through profit or loss
Receivables
Payables
Net financial assets
(a) Market risk
Note
7
8
11
15
2016
$
191,039
729,027
42,345
962,411
(151,617)
810,794
2015
$
269,805
1,523,346
13,171
1,806,322
(161,957)
1,644,365
Market risk is the risk that the fair value and/or future cash flows from a financial instrument will fluctuate
as a result of changes in market factors. Market risk comprises of price risk from fluctuations in the fair
value of equities and interest rate risk from fluctuations in market interest rates.
(i) Price risk
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.
ASX All Ordinaries
Accumulation Index
Increase 15%
Decrease 15%
(ii) Interest rate risk
Impact on
post-tax profit
Impact on other components
components of equity
2016
$
29,562
(29,562)
2015
$
154,669
(154,669)
2016
$
29,562
(29,562)
2015
$
154,669
(154,669)
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 1.35% (2015: 1.85%). The revenue exposure is immaterial in terms of the
possible impact on profit or loss or total equity.
ANNUAL REPORT | 33
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2016
9.
FINANCIAL RISK MANAGEMENT (continued)
(a) Market risk (continued)
(ii) Interest rate risk (continued)
Cash at bank and in hand
(b) Credit risk
2016
$
191,039
2015
$
269,805
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
risk are minimised primarily by
receivables and committed transactions. Concentrations of credit
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-
Receivables (due within 30 days)
No external credit rating available
2016
$
150,287
38,857
189,144
2015
$
265,536
4,269
269,805
42,345
13,171
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.
(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.
10. FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS
Fair value hierarchy
AASB 13 (Fair Value Measurement) 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
(iii) Level 3: inputs for the asset or liability that are not based on observable market data (unobservable
inputs).
ANNUAL REPORT | 34
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2016
10. FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (continued)
2016
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
Level 1
$
462,777
-
-
-
Level 2
$
-
266,250
-
-
462,777
266,250
Level 3
$
Total
$
-
-
1,741,664
65,500
1,807,164
462,777
266,250
1,741,664
65,500
2,536,191
2015
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
1,001,185
-
-
-
-
522,161
-
-
1,001,185
522,161
-
-
1,741,664
65,500
1,807,164
1,001,185
522,161
1,741,664
65,500
3,330,510
There have been no transfers between the levels of the fair value hierarchy during the financial year.
Accounting policy
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or
instruments traded in active markets (such as publicly
for disclosure purposes. The fair value of financial
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,
limited to recent arm’s length
transactions, reference 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.
including but not
The nominal value less estimated credit adjustments of trade receivables and payables are assumed to
liabilities for disclosure purposes is estimated by
approximate their fair values. The fair value of financial
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
“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 8).
(a) 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 | 35
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2016
10. FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (continued)
(a) Valuation techniques (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 and intangible assets (water licence) 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 based on similar assets, location and market conditions or Direct
Comparison or Comparative Sales Approach. The land value per hectare based on rural land sold in the
location provided a rate which included ground water licence. A 4% change would increase or
general
decrease the land's fair value by approximately $69,500. 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 2016 by the Directors. The fair value of the
trees is at the Orion 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 17
year old fruiting trees. There are no age limits to the commercial viability of an olive grove. A 1% change
in the 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.
(b) Level 3 assets
At 1 July 2014
Addition/(Disposal)
At 30 June 2015
Revaluation
At 30 June 2016
(c) Fair values of other financial assets and liabilities
Cash and cash equivalents
Receivables
Payables
Land
$
1,342,030
399,634
1,741,664
-
Olive
trees
$
65,500
-
65,500
-
Total
$
1,407,530
399,634
1,807,164
-
1,741,664
65,500
1,807,164
2016
$
191,039
42,345
233,384
(151,617)
81,767
2015
$
269,805
13,171
282,976
(161,957)
121,019
Due to their short-term nature, the carrying amounts of cash, current receivables and current payables is
assumed to approximate their fair value.
11. RECEIVABLES
Current
Deposit
GST receivable
Other receivables
Receivable from related parties
Non current
Bonds and guarantees
2016
$
27,500
8,647
4,207
1,991
42,345
2015
$
-
6,303
4,495
2,373
13,171
21,774
57,120
Accounting policy
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.
ANNUAL REPORT | 36
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2016
11. RECEIVABLES (continued)
Risk exposure
The Consolidated Entity’s exposure to credit and interest rate risks is discussed in Note 9.
Impaired trade receivables
None of the Consolidated Entity's receivables are impaired or past due.
12. PROPERTY HELD FOR RESALE
Property held for development or resale
Revaluation of property
2016
$
3,797,339
(2,447,339)
1,350,000
2015
$
3,797,339
(2,447,339)
1,350,000
Critical accounting judgement and estimate
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 Orion
Directors have maintained this carrying value as at 30 June 2016 and are of the view that the property is not
impaired.
Accounting policy
Property held for resale 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.
13. PROPERTY, PLANT AND EQUIPMENT
2016
Freehold land
Buildings
Plant and equipment
2015
Freehold land
Buildings
Plant and equipment
Movements in carrying amounts
At 1 July 2014
Revaluation
Additions
Disposal/ Write-offs
Depreciation expense
At 30 June 2015
Freehold
land
$
1,342,030
399,634
-
-
-
1,741,664
Cost
$
1,117,889
124,867
1,386,810
2,629,566
1,117,889
124,867
1,380,646
2,623,402
Buildings
$
67,667
-
6,992
-
(5,600)
69,059
Accumulated
Revaluation Depreciation
$
$
623,775
-
-
623,775
623,775
-
-
623,775
-
(60,988)
(1,224,174)
(1,285,162)
-
(55,808)
(1,180,617)
(1,236,425)
Plant and
equipment
$
253,393
-
2,076
(221)
(55,219)
200,029
Leasehold
improvement
$
3,993
-
-
(3,424)
(569)
-
At 1 July 2015
Additions
Disposal/ Write-offs
Depreciation expense
At 30 June 2016
1,741,664
69,059
-
-
-
-
-
(5,180)
1,741,664
63,879
200,029
6,164
-
(43,557)
162,636
-
-
-
-
-
Total
$
1,741,664
63,879
162,636
1,968,179
1,741,664
69,059
200,029
2,010,752
Total
$
1,667,083
399,634
9,068
(3,645)
(61,388)
2,010,752
2,010,752
6,164
-
(48,737)
1,968,179
Critical accounting judgement and estimate
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 Orion Directors have maintained this carrying value as at
30 June 2016 and are of the view that the Land is not impaired.
ANNUAL REPORT | 37
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2016
13. PROPERTY, PLANT AND EQUIPMENT (continued)
Accounting policy
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.
Increases in the carrying amounts arising on revaluation of land are
Freehold land is not depreciated.
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 asset’s employment and subsequent disposal. The expected net
cash flows have been discounted to their present value in determining the recoverable amount.
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 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 or loss. When revalued assets are sold, amounts included in the revaluation reserve
relating to that asset are transferred to retained earnings.
The depreciation rates used for each class of depreciable asset are:
Class of Fixed Asset
Buildings
Plant and Equipment
Rate
7.50%
5-75%
Method
Diminishing Value
Diminishing Value
14. OLIVE TREES
Olive trees - at cost
Revaluation
2016
$
300,000
(234,500)
65,500
2015
$
300,000
(234,500)
65,500
Critical accounting judgement and estimate
There are approximately 64,500 17 year old olive trees on Orion's 143 hectare Olive Grove located in Gingin,
Western Australia. The fair value of the trees is at Orion Directors' valuation having regard to, amongst other
matters, replacement cost and the trees commercial production qualities.
Accounting policy
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 is measured at its fair value less estimated point-of-sale costs at the point of harvest.
ANNUAL REPORT | 38
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2016
15. PAYABLES
Current
Trade payables
Dividend payable
GST payable
Other payables and accrued expenses
2016
$
67,787
-
10,880
72,950
151,617
2015
$
26,427
28,302
17,100
90,128
161,957
Accounting policy
These amounts represent liabilities for goods and services provided to the Consolidated Entity prior to the end
of the financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of
recognition.
Risk exposure
The Consolidated Entity’s exposure to risks arising from current payables is set out in Note 10.
16. PROVISIONS
Current
Employee benefits - annual leave
Employee benefits - long service leave
2016
$
2015
$
12,752
94,644
107,396
19,316
97,694
117,010
Accounting policy
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.
(a) 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
2016
$
94,644
2015
$
97,694
ANNUAL REPORT | 39
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2016
17. ISSUED CAPITAL
Fully paid ordinary shares
Partly paid ordinary shares
2016
Number
26,578,358
5,770,000
2015
Number
28,817,316
9,000,000
2016
$
5,935,679
214,209
6,149,888
2015
$
6,029,170
239,275
6,268,445
Accounting policy
Ordinary shares are classified as equity. Fully paid ordinary shares carry one vote per share and the right to
dividends. 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.
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.
Movement in fully paid ordinary shares
At 1 July 2014
At 30 June 2015
Date of issue
At 1 July 2015
Issue of shares
Equal access share buy-back - refer (a)
Issue of shares
11-Dec-15
27-May-16
30-Jun-16
At 30 June 2016
Movement in partly paid ordinary shares
At 1 July 2014
At 30 June 2015
At 1 July 2015
Call on partly paid shares - refer (b)
Partly paid shares converted (b)
Equal access share buy-back - refer (a)
Call on partly paid shares - refer (b)
Partly paid shares converted (b)
At 30 June 2016
11-Dec-15
27-May-16
30-Jun-16
Number
of shares
28,817,316
28,817,316
28,817,316
900,000
(3,220,914)
81,956
26,578,358
9,000,000
9,000,000
9,000,000
-
(900,000)
(2,248,044)
-
(81,956)
5,770,000
Issue price
$
0.20
0.09
0.20
0.20
0.20
$
6,029,170
6,029,170
6,029,170
180,000
(289,882)
16,391
5,935,679
239,275
239,275
239,275
166,298
(180,000)
(10,116)
15,143
(16,391)
214,209
ANNUAL REPORT | 40
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2016
17. ISSUED CAPITAL (continued)
(a) Equal access share buy-back
On 26 May 2016, the Company's Off-Market Equal Access Share Buy-Back (approved by shareholders at
the General Meeting held on 17 March 2016) (Buy-Back) closed with the following shares being bought-
back and cancelled:
(i)
(ii)
3,220,914 fully paid ordinary shares were bought back for 9 cents per share at a cost of $289,882;
2,248,044 partly paid ordinary shares were bought back for 0.45 cent per share at a total cost of
$10,116,
with the total cost of the Buy-Back being $299,998.
(b) Call on partly paid ordinary shares
The Company made a call on partly paid shares in relation to 100% of the outstanding balance, which has
been converted to fully paid shares upon payment as follows:
(i)
On 3 December 2015, there was a call for balance of payment of 900,000 partly paid shares
amounting to $166,298.
On 16 June 2016, there was a call for balance of payment of 81,956 partly paid shares amounting to
$15,143.
(ii)
(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.
The Consolidated Entity has no external borrowings. The Consolidated Entity's non-cash investments can
be realised to meet accounts payable arising in the normal course of business.
18. 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
Profits reserve
2016
$
2,138,012
2015
$
2,138,012
623,775
(187,132)
(175,267)
261,376
1,071,663
(214,068)
857,595
623,775
(187,132)
(178,749)
257,894
949,247
(144,745)
804,502
13,701
-
3,270,684
3,200,408
The Asset Revaluation Reserve relates to the revaluation of Orion's Olive Grove Land (Note 13), as assessed by
an independent qualified valuer (a Certified Practising Valuer and Associate Member of the Australian Property
Institute) as at 30 June 2015.
ANNUAL REPORT | 41
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2016
18. RESERVES (continued)
Other Reserve relates to the gain the Company generated from increasing its shareholding interest in Orion by
0.76% (30 June 2015: 6.48%) as a consequence of Orion cancelling a total of 211,300 (2015: 1,953,861)
shares bought-back pursuant to an on-market share buy-back at a cost of $46,686 (2015: $519,293). 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.
Profits Reserve increase will arise when the Company or its subsidiaries generates a net profit (after tax) for a
relevant financial period (i.e. half year or full year) which the Board determines to credit to the company’s
Profits Reserve. Dividends may be paid out of (and debited from) the company’s Profits Reserve, from time to
time.
19. NON-CONTROLLING INTEREST
Issued capital
Asset revaluation reserve
Other reserve
Accumulated losses
2016
$
7,549,512
175,267
214,068
(4,927,371)
3,011,476
2015
$
7,718,615
178,749
144,745
(4,729,010)
3,313,099
The non-controlling interest is a 40.14% (2015: 40.94%) equity holding in Orion Equities Limited (not held by
the Company).
Accounting policy
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 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 (refer Note 18) within
equity attributable to owners of Queste Communications Ltd.
20. PARENT ENTITY INFORMATION
The following information provided relates to the Company, Queste Communications Ltd, as at 30 June 2016.
Statement of profit or loss and other comprehensive income
Loss for the year
Other comprehensive income
Total comprehensive loss for the year
Statement of financial position
Current assets
Non current assets
Total assets
Current liabilities
Total liabilities
Net assets
Issued capital
Option premium reserve
Accumulated losses
Equity
2016
$
(334,732)
-
2015
$
(1,502,709)
-
(334,732)
(1,502,709)
130,030
2,225,061
2,355,091
500,663
2,312,344
2,813,007
118,391
118,391
123,017
123,017
2,236,700
2,689,990
6,149,888
2,138,012
(6,051,200)
2,236,700
6,268,445
2,138,012
(5,716,467)
2,689,990
ANNUAL REPORT | 42
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2016
21. INVESTMENT IN CONTROLLED ENTITY
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiary
with non-controlling interest:
Ownership Interest
Parent
Non-Controlling Interest
Incorporated
Orion Equities Limited (ASX:OEQ) Australia
2016
59.86%
2015
59.06%
2016
40.14%
2015
40.94%
information of the subsidiary with non-controlling interests that are material to the
The Company's interest in Orion increased during the financial year as a consequence of Orion cancelling
211,300 shares bought-back pursuant to on-market share buy-backs.
Summarised financial
consolidated entity are set out below:
Summarised statement of profit or loss and other comprehensive
income
Revenue
Expenses
Loss before income tax expense
Income tax expense
Loss for the year from continuing operations
Loss for the year from discontinuing operations
Loss after income tax expense
Other comprehensive income
Total comprehensive loss for the year
2015
$
303,057
(1,062,948)
(759,891)
89,501
(670,390)
2016
$
198,781
(742,734)
(543,953)
(670,390)
208,837
(461,553)
(543,953)
(543,953)
(543,953)
-
-
-
-
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
Lease commitments
Not longer than one year
Longer than one year but not longer than five years
Note
25
826,409
6,933,370
7,759,779
1,313,988
7,114,399
8,428,387
140,535
116,782
257,317
155,862
179,424
335,286
7,502,462
8,093,101
(14,226)
(1,107)
(46,686)
(62,019)
(544,856)
94,468
(1,045)
(451,433)
(198,360)
3,011,476
(311,722)
3,313,099
32,083
-
32,083
56,035
32,083
88,118
ANNUAL REPORT | 43
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2016
21. INVESTMENT IN CONTROLLED ENTITY (continued)
Accounting policy
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.
Subsidiaries are fully consolidated from the date on which control
is transferred to the Consolidated Entity.
They are de-consolidated from the date that control ceases. The controlled entity has a June financial year-end.
All
including any
unrealised profits or losses, have been eliminated on consolidation.
inter-company balances and transactions between entities in the Consolidated Entity,
Changes in Ownership Interests
When the Consolidated Entity ceases to have control, 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.
22. INVESTMENT IN ASSOCIATE ENTITY
Bentley Capital Limited (ASX:BEL)
Ownership Interest
2016
28.93%
2015
29.75%
Carrying Amount
2016
$
3,545,665
2015
$
3,705,212
Accounting policy
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.
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.
The associated entity has a June financial year-end.
Changes in ownership interests
If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate
share of the amounts previously recognised in other comprehensive income are reclassified to profit or loss
where appropriate.
ANNUAL REPORT | 44
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2016
22. INVESTMENT IN ASSOCIATE ENTITY (continued)
Movements in carrying amounts
Opening balance
Sale of BEL shares
Share of net profit/(loss) after tax
Dividends received
Closing balance
2016
$
3,705,212
(100,529)
163,526
(222,544)
2015
$
4,119,071
-
(80,044)
(333,815)
3,545,665
3,705,212
Fair value of listed investment in Associate
2,944,861
2,893,073
Net asset value of investment
4,712,038
4,887,071
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
3,258,497
(2,732,417)
526,080
-
2,398,085
(2,665,385)
(267,300)
-
526,080
(267,300)
-
-
526,080
(267,300)
Summarised statement of financial position
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Lease commitments
Not longer than one year
Longer than one year but not longer than five years
23. RELATED PARTY TRANSACTIONS
(a) Transactions with Related Parties
13,159,280
3,430,001
16,589,281
6,565,383
10,524,117
17,089,500
291,725
9,835
301,560
304,394
358,969
663,363
16,287,721
16,426,137
32,083
-
32,083
56,035
32,083
88,118
The Company has control of Orion Equities Limited (Orion) as it holds 59.86% (9,367,653 shares) of
Orion's issued capital (2015: 59.06% and 9,367,653 shares). During the year there were transactions
between the Company, Orion and Associate Entity, Bentley Capital Limited (ASX:BEL), pursuant to shared
office and administration expense arrangements. There were no outstanding amounts at the reporting
date.
Bentley Capital Limited
Dividends Received
2016
$
17,406
2015
$
26,108
ANNUAL REPORT | 45
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2016
23. RELATED PARTY TRANSACTIONS (continued)
(b) Transactions with 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 2016. The total
remuneration paid to KMP of the Consolidated Entity during the year is as follows:
Directors
Short-term employment benefits
Post-employment benefits
2016
$
417,460
36,000
453,460
2015
$
502,680
2,404
505,084
During the year, the Consolidated Entity received $44,200 rental income from a KMP/close family member
of a KMP (the KMP being Orion and Queste Director, Farooq Khan), pursuant to a standard form residential
tenancy agreement in respect of Orion's Property Held for Resale (2015: $44,200). The rental is in respect
of a fixed term of 12 months (to 31 May) with the monthly rental being $3,683.
24. AUDITORS' REMUNERATION
During the year the following fees were paid or payable for services provided by the auditor of the parent
entity, its related practices and other non-related audit firms:
Rothsay Auditing
Audit and Review of Financial Statements
BDO Audit (WA) Pty Ltd
Audit and review of financial statements
Taxation services
BDO Corporate Finance (WA) Pty Ltd
Other services
2016
$
36,000
550
2,901
12,565
52,016
2015
$
-
59,612
6,569
-
66,181
The Company changed its Auditors from BDO Audit (WA) Pty Ltd to Rothsay Auditing with effect on 12
February 2016.
25. COMMITMENTS
Not longer than one year
Longer than one year but not longer than five years
2016
$
61,250
-
61,250
2015
$
106,976
61,250
168,226
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.
Accounting policy
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Group 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.
ANNUAL REPORT | 46
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2016
26.
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 tenement (currently
a Retention Licence RL 47/7) in Western Australia currently held by Strike Resources Limited (ASX:SRK).
27.
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 0.50 cent per share in September 2016. The Company’s entitlement to such dividend would be
$6,500. Orion's entitlement to such dividend would be $102,569.
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 | 47
30 JUNE 2016
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 19 to 47 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 2016 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 2001
(Cth) by the Executive Chairman/Managing Director (the person who, in the opinion of the Directors,
performs the Chief Executive Officer function) and 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 2001 (Cth).
Farooq Khan
Chairman
31 August 2016
Victor Ho
Company Secretary
ANNUAL REPORT | 48
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
ADDITIONAL ASX INFORMATION
as at 26 October 2016
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 2016.
Pursuant to ASX Listing Rule 4.10.3, the Company’s 2016 Corporate Governance Statement (dated on or about 28
October 2016) and ASX Appendix 4G (Key to Disclosures of Corporate Governance Principles and
Recommendations) can be
Internet website:
http://queste.com.au/corporate-governance
following URL on
the Company’s
found at
the
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
10
48
61
95
25
239
7,224
133,162
555,408
2,680,988
23,201,576
26,578,358
0.027%
0.501%
2.090%
10.087%
87.295%
100.00%
Spread
of Holdings
Number of Holders
Number of Shares
% of Total Issued Capital
1
9,615
-
-
9,615
over
TOTAL
77
162
239
276,065
26,302,293
26,578,358
1.039%
98.961%
100.00%
An unmarketable parcel is considered, for the purposes of the above table, to be a shareholding of 9,615 shares or less, being a value of
$500 or less in total, based upon the Company’s last sale price on ASX as at 26 October of $0.052 per share.
DISTRIBUTION OF UNLISTED PARTLY PAID ORDINARY SHARES
Name
Chi Tung Investments Ltd
No. of Partly Paid Shares
% Voting Power
5,770,000
1.626%
These 5,770,000 ordinary shares were issued at a price of 20 cents per share and have been partly paid to 1.5225 cent each and have
an outstanding amount payable of 18.4775 cents per share. These shares carry voting rights proportional to the amount paid up per
share. This is equivalent to 439,241 total voting shares.
ANNUAL REPORT | 51
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
ADDITIONAL ASX INFORMATION
as at 26 October 2016
SUBSTANTIAL SHAREHOLDERS
Substantial
Shareholders
Registered
Shareholder
Registered
Fully Paid
Shareholding
Registered
Partly Paid
Shareholding
Azhar Chaudhri,
Renmuir Holdings
Limited
and Chi Tung
Investments Ltd1
Bell IXL
Investments
Limited
and associates3
Farooq Khan and
associates4
RENMUIR HOLDINGS
LTD
CHI TUNG
INVESTMENTS LTD
3,277,780
3,031,956
MR AZHAR CHAUDHRI
1,436,001
CHI TUNG
INVESTMENTS LTD
CLEOD PTY LTD
1,985,684
BELL IXL
INVESTMENTS LIMITED
CELLANTE SECURITIES
PTY LIMITED
ISLAND AUSTRALIA
PTY LTD
1,878,223
1,483,422
3,668,577
FAROOQ KHAN
1,676,295
Manar Nominees
Pty Ltd and
Zelwar
Superannuation Pty
Ltd5
MANAR NOMINEES PTY
LTD
ZELWER
SUPERANNUATION PTY
LTD
1,617,910
130,405
Total
Voting
Shares
%Voting
Power6
8,184,978
30.295%
Voting
Shares
3,277,780
3,031,956
1,436,001
-
-
-
5,770,000
439,2412
-
-
-
-
-
-
-
1,985,684
1,878,223
1,483,422
3,668,577
1,676,295
1,617,910
130,405
5,347,329
19.792%
5,344,872
19.783%
1,748,315
6.471%
Notes:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Based on the substantial shareholding notice filed by Azhar Chaudhri and associates dated 30 June 2016
Voting shares attributable to 5,770,000 partly paid ordinary shares (issued at a price of 20 cents per share) which have been partly paid
to 1.5225 cents each
Based on the substantial shareholding notice filed by Bell IXL Investments Limited dated 28 January 2014 (updated to reflect current
registered shareholdings and percentage voting power)
Based on the Change of Interests of Substantial Holder notice filed by Farooq Khan and associates dated 20 November 2014 (updated to
reflect current registered shareholdings and percentage voting power)
Based on the substantial shareholding notice filed by Manar Nominees Pty Ltd dated 29 December 2003 (updated to reflect current
registered shareholdings and percentage voting power)
Total Voting Power is equivalent to the total number of fully paid ordinary shares on issue (26,578,358) plus the equivalent voting shares
associated with the partly paid shares on issue based on the amount paid up per partly paid share (439,241), being a total of 27,017,599
voting shares.
Movements of less than 1% in voting power are not required to be disclosed to ASX via an updated 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. Current registered shareholdings have been disclosed (where applicable).
ANNUAL REPORT | 52
30 JUNE 2016
QUESTE COMMUNICATIONS LTD
A.B.N. 58 081 688 164
ADDITIONAL ASX INFORMATION
as at 26 October 2016
TOP 20 ORDINARY FULLY PAID SHAREHOLDERS
Rank Shareholder
1
2
3
4
5
6
7
8
9
RENMUIR HOLDINGS LTD
CHI TUNG INVESTMENTS LTD
MR AZHAR CHAUDHRI
CLEOD PTY LTD
BELL IXL INVESTMENTS LIMITED
CELLANTE SECURITIES PTY LIMITED
ISLAND AUSTRALIA PTY LTD
FAROOQ KHAN
MANAR NOMINEES
ZELWER SUPERANNUATION PTY LTD
COWOSO CAPITAL PTY LTD
MS ROSANNA DE CAMPO
GLENVIEW SERVICES PTY LTD
MR DONALD GORDON MACKENZIE &
MRS GWENNETH EDNA MACKENZIE
GIBSON KILLER PTY LTD
10 MR AYUB KHAN
11 MRS AFIA KHAN
12 MR SIMON KENNETH CATO
ROSEMONT ASSET PTY LTD
13
14
GM & AM LEAVER INVESTMENTS PTY LTD
TOMATO 2 PTY LTD
15 MR JOHN CHENG-HSIANG YANG & MS PING MOK
16 MR ANTHONY NEALE KILLER & MRS SANDRA MARIE KILLER
17 MR EUGENE RODRIGUEZ
18 MRS MARY THERESE CAMILLERI
19 MRS LINDA ANN OATES
20
RIALC PTY LIMITED
Total
Shares Held
Total
Shares
% Issued
Capital
% Voting
Power*
3,277,780
3,031,956
1,436,001
Sub-total
1,985,684
1,878,223
1,483,422
Sub-total
3,668,577
1,676,295
Sub-total
1,617,910
130,405
Sub-total
0
0
0
7,745,737
0
0
0
5,347,329
0
0
5,344,872
0
0
1,748,315
29.143%
28.669%
20.119%
19.792%
20.110%
19.783%
6.578%
6.471%
830,834
3.126%
3.075%
268,100
1.009%
0.992%
250,000
0.941%
0.925%
249,975
0.941%
0.925%
220,000
0.828%
0.814%
215,000
0.809%
0.796%
215,000
0.809%
0.796%
118,000
75,000
Sub-total
0
0
193,000
0.726%
0.714%
191,400
0.720%
0.708%
185,019
0.696%
0.685%
136,125
0.512%
0.504%
130,000
0.489%
0.481%
110,000
0.414%
0.407%
100,000
0.376%
0.370%
100,000
0.376%
0.370%
93,148
0.350%
0.345%
23,673,854 89.072% 87.622%
*
Total Voting Power is equivalent to the total number of fully paid ordinary shares on issue (26,578,358) plus the equivalent voting shares
associated with the partly paid shares on issue based on the amount paid up per partly paid share (439,241), being a total of 27,017,599
voting shares
ANNUAL REPORT | 53
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
T | (08) 9214 9777
F | (08) 9214 9701
E | info@queste.com.au
W | www.queste.com.au
SHARE REGISTRY:
Advanced Share Registry Services
Western Australia – Main Office
110 Stirling Highway
Nedlands, Western Australia 6009
PO Box 1156, Nedlands,
Western Australia 6909
T | (08) 9389 8033
F | (08) 9262 3723
E | admin@advancedshare.com.au
W | www.advancedshare.com.au
New South Wales – Branch Office
Suite 8H, 325 Pitt Street
Sydney, New South Wales 2000
PO Box Q1736, Queen Victoria Building
New South Wales 1230
T | (02) 8096 3502
T | (03) 9018 7102
T | (07) 3103 3838
Victoria
Queensland