Exhibit 28.1

                     STATEMENT OF MATERIAL SUBSEQUENT EVENTS


           Telco Communications, Inc.  December 31, 1996  Form 10-KSB    Page 23

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                     STATEMENT OF MATERIAL SUBSEQUENT EVENTS

     The following  events  occurring  subsequent to the date of this Report are
deemed material and are disclosed as follows:

          (1) Officers and Directors

     On January  15,  1997,  a Majority  of  Shareholders  met and  resolved  to
re-elect existing directors and to elect James G. Mitchell additional  Director.
On or about October 3, 1997, James G. Mitchell  resigned as director and officer
of the issuer, citing the press of other business commitments.

          (2) Change of Par Value

     On January  15,  1997,  a Majority  of  Shareholders  met and  resolved  to
authorize a change of the name of the  Corporation to Innovest  Capital  Sources
Corporation.

          (3) Change of Par Value

     On or about  September 25, 1997,  the Issuer amended its articles to change
the par value to "no par".

          (4) Intention to Reverse Split

      The  Company  intends to propose to  shareholders  a reverse  split of the
Company's  common  stock by which every  fifty  shares  would  become one share;
provided  that no  shareholder  owning 100 shares or more would be reduced below
100  shares.  The  reason  for such a  reverse  is with a view to  attracting  a
business  acquisition in order to achieve some  profitability to the company and
value for shareholders.  The Company presently is authorized to issue 50,000,000
shares  and has  50,000,000  shares  issued and  outstanding.  The result of the
reverse is that the company's  50,000,000  shares issued would become  1,000,000
shares,  so the additional  shares would become available to purchase assets and
business for stock,  without the need of raising additional  capital.  While the
reverse  itself  would  result in no  dilution of any  shareholder's  percentage
ownership,  other than possibly the principal  shareholder,  any acquisition for
stock would result in dilution of present percentage ownership.

          (5) Stock for Services following Reverse Split to be proposed

      The Company has  incurred  legal,  professional  and  consulting  fees and
expenses in the amount of $134,410.00 in connections  with matters arising since
emergence from Bankruptcy. The Company intends to propose to shareholders to pay
for these  services with stock rather than cash.  The stock to be proposed to be
issued would be  post-reverse.  Accordingly,  after the  pre-reverse  50,000,000
shares would  become  1,000,000  post-reverse,  and if the  5,000,000  shares be
approved and issued,  the total issued and outstanding,  post-reverse would then
be 6,000,000 shares.

          (6) Proposed Change of Name and Place of Incorporation

      The Company  intends to propose to  shareholders,  first to reorganize the
corporation  formally,  changing its name and moving its place of  incorporation
from Colorado to Delaware,  and second, to acquire certain potentially  valuable
business opportunities, assets and businesses for the resulting merged entity.

      The  Issuer is  considering  a Plan of  Reorganization  by which  Innovest
Capital  Sources  Corporation  and Solar Energy Ltd.  would  merge,  Solar would
survive the Merger,  the  shareholders of Innovest would become the shareholders
of Solar,  share for share,  and the situs of the merged  entity would remain in
Delaware, having acquired the operational history of Innovest, and the corporate
existence  of Innovest  would  continue in and  through  Solar,  and only in and
through Solar Energy Ltd.


           Telco Communications, Inc.  December 31, 1996  Form 10-KSB    Page 24

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     While Solar Energy Ltd. (the Corporation into which this Company may merge)
has acquired an assignment,  in principle only, of an agreement (entitled "Offer
to Purchase"  dated June 23, 1997) to acquire  Hydro-Air  Technologies,  Inc., a
company which has developed certain intellectual property rights with which they
intend  to  generate  commercially  valuable  electric  power  using the heat of
evaporation;  these  arrangements  are  extremely  tentative  and  uncertain  of
consummation. Even if the shareholders approve the transition-merger with Solar,
which is not certain,  it remains  uncertain as well whether Solar and Hydro-Air
will arrive at mutually acceptable terms.

           Telco Communications, Inc.  December 31, 1996  Form 10-KSB    Page 25