U.S. SECURITIES AND EXCHANGE COMMISSION
                  WASHINGTON, D.C.  20549
                        FORM 10-KSB

[X]  Annual report under section 13 or 15(d) of the Securities Exchange Act
of 1934 for the fiscal year ended 12/31/01.

[ ] Transition report under section 13 or 15(d) of the Securities Exchange
Act of 1934 for the transition period from ________ to ________.

Commission File Number 000-31143


                            GAVELLA CORP.
               (Name of Small Business Issuer in Its Charter)


           Delaware                                       22-3742159
 (State or Other Jurisdiction of                       (I.R.S. Employer
 Incorporation or Organization)                        Identification No.)

215 West Main Street, Maple Shade, New Jersey                   08052
(Address of Principal Executive Offices)                      (Zip Code)

                              (856) 667-0600
                        (Issuer's Telephone Number)


Securities registered under Section 12(b) of the Act: none

Securities registered under Section 12(g) of the Act: common stock, $.001 par
value

Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for
such shorter period that the registrant was required to file such reports)
and (2) has been subject to such filing requirements for the past 90 days)
[X] Yes    [  ] No


Check if there is no disclosure of delinquent filers in response to Item 405
of Regulation S-B is not contained in this form, and no disclosure will be
contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form
10-KSB or any amendment to this Form 10-KSB. [X] Yes   [  ] No

State issuer's revenues for its most recent fiscal year: $856,157

The Company's common stock is quoted on the NASD OTC Bulletin Board under the
symbol "GVLA".   The estimated aggregate market value of the voting and non-
voting stock held by  non-affiliates of the registrant as of December 31,
2001 was $246,589. The market value is based upon the last sale of the Common
Stock on the NASD OTC Bulletin Board of $.20 per share on March 1, 2002.

The Company had 2,485,000 shares of common stock, par value $.001 per share,
outstanding as of March 20, 2001.

Documents incorporated by reference: none

Transitional Small Business Disclosure:     Yes       No  XX
                                                ----     -----
<PAGE>
                                     PART I

ITEM 1.  DESCRIPTION OF BUSINESS

General
--------

Gavella Corp. ("Gavella" or the "Company") was incorporated on June 21, 2000
in the State of Delaware as a wholly owned subsidiary of Apta Holdings, Inc.
("Apta").  On August 7, 2000, Apta transferred all of the assets and
liabilities of its 100% wholly owned subsidiary, Spring Village Holdings,
Inc. to Gavella in exchange for 2,000,000 shares of $.001 par value Gavella
common stock.  Spring Village Holdings, Inc. owns an 80% controlling interest
in SVG Properties, L.P., a New Jersey limited partnership (the
"Partnership").  The Partnership owns a 124 unit apartment complex.  The
transfer of Spring Village Holdings, Inc. to Gavella was due to a decision by
Apta's Board of Directors to separate the finance business and the real
estate business into two separate corporations.  On December 27, 2000, each
shareholder of Apta received one share of Gavella for each share of Apta
owned by the shareholders of record as of December 1, 2000. The chart below
depicts the Company's corporate structure:

                         ------------------
                        |   Gavella Corp.  |
                         ------------------
                                100%
                                 |
                    -----------------------------
                   | Spring Village Holdings, Inc.|
                    -----------------------------
                                 |
                                 |
                                 80%
                       ----------------------
                      | SVG Properties, L.P. |
                       ----------------------

The following discussion of the business of the Company includes the business
of Spring Village Holdings, Inc.

The Company is currently engaged in one line of business; owning and
operating income producing real estate.

On December 31, 1995, Spring Village Holdings, Inc. acquired, for $50,000, an
80% controlling interest in a 124 unit apartment complex located in Sharon
Hill, Pennsylvania.  The Partnership secured bridge financing to make certain
improvements needed to refinance the property.  Upon completion of the
improvements, rents, occupancy and net cash flow increased and the property
was successfully refinanced on September 19, 1997. Subsequent to the
refinancing, the Partnership has used its positive operating cash flow to
reduce debt.
                                      -2-
<PAGE>
The consolidated financial statements include the accounts of Gavella Corp.
and its wholly owned subsidiary, Spring Village Holdings, Inc. Spring Village
Holdings, Inc. is the sole general partner of SVG Properties, L.P.  and
completely controls the partnership.  Accordingly, the accounts of Spring
Village Holdings, Inc. include its 80% partnership interest in SVG
Properties, L.P. (T/A Spring Village Apartments). All significant
intercompany transactions and accounts have been eliminated.

For financial reporting purposes, the assets, liabilities, results of
operations and cash flows of the partnership are included in the Company's
consolidated financial statements.  The outside investors' limited
partnership interests have been reflected as minority interests.

The Company has had a history of losses and as of December 31, 2001 reported
an accumulated deficit of $651,153.  The Company has generated a positive
cash flow from operations in the last two fiscal years prior to 2001.
However, due to unanticipated rising costs and one time charges, the Company
had a negative cash flow from operations in the current fiscal year.  The
Company projects breakeven cash flow from operations in the fiscal year 2002.
There can be no assurance that the Company will be successful in its efforts
to generate sufficient cash flow to meet its scheduled debt service or other
cash requirements.

The Company has no plans to acquire additional single family or multi-family
residential properties in the foreseeable future.  The Company does not
currently have any specific plans for acquisitions, and no potential
acquisitions are currently under review. The Company is currently focused on
using its cash flow from operations, if any, to reduce debt, with the
remainder being reinvested in its existing property.

The Company also intends to utilize its contacts, business expertise and
knowledge of the securities markets to identify and invest in small,
established private companies with well defined growth plans. Gavella may
also assist such companies by utilizing various strategies to maximize their
long term value.  These strategies may include preparing the Company to
become a public company, assisting with mergers and acquisitions, and
facilitating additional capital raising activities.  In order to enhance
Gavella's shareholder value, Gavella intends to liquidate its interest in
such companies over time. There is no assurance that such companies can be
identified or once identified, that any investments made in such companies
will prove to be profitable.

On September 30, 2001, the Company invested $25,000 in DataNet Office
Solutions, Inc. in exchange for 500,000 shares of common stock.  Pursuant to
the agreement, two officers of the Company agreed to invest $12,500 into
DataNet Office Solutions, Inc. in exchange for 250,000 shares of common stock
and a shareholder of the Company agreed to contribute his 100% ownership
interest in DataNet, L.L.C. into DataNet Office Solutions, Inc. in exchange
for 2,750,000 shares of common stock.  On December 31, 2001, Gavella Corp.
owned 14.2% of DataNet Office Solutions, Inc.  Below is certain pro forma
unaudited selected financial information on DataNet Office Solutions, Inc.



                                      -3-
<PAGE>
                                           Twelve months   Twelve months
                                                Ended           Ended
                                              12/31/01         12/31/00
                                           ---------       ---------
     Total Assets                           $731,667        $359,637
     Total Liabilities                       491,818         254,073
                                           ---------       ---------
     Total Stockholders' Equity             $239,849        $105,564

     Total Revenues                        2,206,072       1,776,559
     Operating Expenses and taxes          1,944,637       1,687,288
                                           ---------       ---------
     Net income                            $ 261,435       $  89,271
                                           =========       =========

DataNet Office Solutions, Inc. is in the business of providing office
supplies, printing, print management, ad specialties and a number of related
services.  The investment in DataNet will be accounted for using the equity
method of accounting.  Accordingly, Gavella's proportionate share of
DataNet's net profit or loss subsequent to September 30, 2001 will be
reflected in Gavella's financial statements.

On October 31, 2001, the Company invested $3,750 in Eastern Envelopes &
Graphics, Inc. ("Eastern").  Eastern is in the business of commercial
printing, primarily envelopes.  Eastern is a development stage enterprise and
reported a loss of $38,363 for the year ended December 31, 2001.  Gavella
owned 20% of Eastern on December 31, 2001.  The investment in Eastern will be
accounted for using the equity method of accounting.

Real Estate Operations
-----------------------

On December 31, 1995, Spring Village Holdings, Inc., the Company's wholly
owned subsidiary, acquired a 4.5% general partnership interest and a 75.5%
limited partnership interest (80% total) in SVG Properties, L.P. which owns
the Spring Village Apartments complex in Sharon Hill, Pennsylvania from Harry
J. Santoro and companies affiliated with him (Santoro), the Company's
President, for $50,000.

Spring Village Holdings, Inc. was the wholly owned subsidiary of Apta Corp.
prior to the transfer to Gavella Corp. on August 7, 2000.


                                      -4-
<PAGE>
SVG Properties, L.P. is a limited partnership organized under the laws of the
State of New Jersey on May 12, 1987. In 1987 the Partnership acquired for
$2,450,000 the Mill Spring Apartments (subsequently renamed the Spring
Village Apartments). At the time of the acquisition the property was severely
in need of rehabilitation. The Partnership invested over $1,000,000 into the
property using capital contributed by nine limited partners and the net
proceeds from a $3,250,000 mortgage guaranteed by the Federal Housing
Administration. Though the physical aspects and the net income of the
property were significantly improved, the net income from operations was not
sufficient to make the principal and interest payments due on the first
mortgage. The Partnership attributes this to the high effective interest rate
on the mortgage of 10 1/2%, plus 1/2% for insurance.  In January, 1992, the
Partnership defaulted on its mortgage. In August, 1992, Santoro acquired a
controlling interest in the Partnership, along with other assets, in exchange
for $125,000. At the time of the acquisition in 1992, Mr. Santoro owned a
7.14% limited partnership interest in SVG Properties, L.P. Mr. Santoro also
was the chief executive officer and a 16.7% owner of Santoro, VanDervort &
Gordon, Inc., the corporate general partner, which owned 14.70% of S.V.G.
Properties, L.P. Santoro then entered into negotiations with the U.S.
Department of Housing and Urban Development (HUD) to renegotiate the terms of
the first mortgage. A Provisional Workout Agreement (the "Agreement") was
agreed to and became effective on January 1, 1994, whereby HUD agreed not to
take any action as a result of the default, provided that the mortgagor remit
the minimum monthly payment and satisfactorily performed the other
requirements of the agreement. The agreement provided for a minimum monthly
payment of $24,000 ($288,000/yr.) in 1994 increasing to $34,000 per month
($408,000/yr.) in 2002.

During March of 1994, HUD announced that it planned to sell the large backlog
of mortgage loans that reverted to the Federal Housing Administration (FHA)
when borrowers defaulted on FHA insured mortgages.

On September 18, 1996, the Company was notified that the mortgage on the
Property was sold to Resource Properties XXIII, Inc. ("RPI").  Shortly
thereafter, the Partnership entered into an agreement with RPI whereby RPI
agreed to  recast the existing $3,490,419 debt to RPI as part of a proposed
refinancing.

On September 19, 1997, the Partnership completed the refinancing of its long
term debt.  The refinancing completed the first objective of the
Partnership's long term business plan.  Below is a  summary of the
significant financial terms of the refinancing (rounded to the  nearest
$1,000):
                                                Before             After
                                             Refinancing        Refinancing
                                             -----------        -----------
Total long term debt                          3,595,000         3,578,000
Annual debt service (1998)                      342,000           326,000
Annual interest expense (1998)                  331,000           296,000
Funded expense escrows                           10,000            99,000
Effective interest rate                            9.2%              8.3%
Maturity                                         7 years         10 years+/-



                                      -5-
<PAGE>
As a result of the refinancing, long term debt decreased by $17,000, annual
debt service decreased by $19,000, annual interest expense decreased by
$35,000, and funded cash reserves to cover anticipated future expenses such
as taxes, capital replacements and insurance increased by $89,000.  Below is
a more detailed analysis of long term debt as of September 19, 1997.

                                  Principal     Annual           Annual
                                                Debt Service     Interest
                                                Principal
                                                plus interest
                                  -----------------------------------------
New first Mortgage (Merrill)
  (7.78%) (10 years)              2,500,000     215,544          194,500
New second mortgage (RPI)
  (9.28%) (25 years)                927,672      95,568           86,088
New subordinate debt (Santoro)
   (10.0%)(2 years)                 150,000      15,000           15,000
                                  ---------     -------          --------
                                  3,577,672     326,112          295,588

For more information, see Financial Statements

The Company plans to seek new capital to reduce total debt and to seek
strategic acquisitions to enhance shareholder value.


Investment Policies
--------------------

The Company has no plans to acquire additional single family or multi-family
residential properties in the foreseeable future.  The Company does not
currently have any specific plans for acquisitions, and no potential
acquisitions are currently under review. The Company is currently focused on
using its cash flow from operations, if any, to reduce debt, with the
remainder being reinvested in its existing property.

The Company manages its properties utilizing its own personnel who are
employed either directly or as subcontractors.

The Company intends to finance its future acquisitions, if any, through the
use of its own equity and initial acquisition debt up to 100% of the cost of
the property, including anticipated improvements.  There is no limit as to
the number or amount of mortgages which may be placed on each property.  It
is the Company's stated long term goal to reduce overall debt to no greater
than 80% of the market value of the Company's real estate holdings.

The Company's policy is to acquire assets for income, with capital
appreciation being anticipated, but secondary to current income.

The Company has no limit as to the percentage of its assets which may be
invested in any particular property.



                                      -6-
<PAGE>
The Company may invest in mortgages or other debt securities, including real
estate tax liens, and there are no restrictions on such investments except
that such debt securities or liens shall be secured by residential real
estate or unimproved acreage.  The Company does not intend to originate or
warehouse mortgages, for purposes of sale or servicing.

The Company may invest in direct or indirect interests in residential real
estate and unimproved land, including fee simple ownership, general or
limited partnership interests, listed or not listed common or preferred stock
in real estate companies or REITS which invest in residential real estate.
There are no restrictions on such investments, except that the Company will
not invest  in a transaction or a series of transactions which will require
registration  as an Investment Company under the Investment Company Act of
1940.

The Company, at the discretion of the Board of Directors, may change the
above outlined investment objectives and criteria or the policies listed
below as it deems appropriate and in the best  interests of the Company.

In order to carry out its investment policies outlined above, the officers of
the Company, with the approval of the directors, and without a vote of
security holders except when required by state or federal statutes, may:

     1.   Issue senior securities
     2.   Borrow money
     3.   Make loans to other persons
     4.   Invest in securities of other issuers for the purpose of
           exercising control
     5.   Underwrite securities of other issuers
     6.   Engage in the purchase and sale of real estate investments
     7.   Offer its securities in exchange for property
     8.   Repurchase or reacquire its shares or other securities

During the past three years, the Company has not engaged in any of the above
listed activities other than the borrowing of approximately $150,000 for
equipment, building improvements and repayment of other debt.  Though the
officers of the Company are authorized to do so, it is unlikely that the
Company will engage in any of the above activities in the foreseeable future
other than borrowing money in the ordinary course of business.

The Company will provide directly to its security holders an annual report
and proxy statement substantially in the form of a Form 10-KSB filed with the
Securities and Exchange Commission.  The financial statements in the annual
report will be certified by independent public accountants.  The Company
shall also keep the security holders informed about major developments,
either by directly mailing a report to the security holder or through a
public press release supported by a Form 8-K, a quarterly report or other
filing with the Securities and Exchange Commission.


                                   -7-
<PAGE>
Industry Overview
------------------

The Company's primary focus is to own and operate apartment complexes.  The
industry is dominated by numerous small operators.  There are several large
apartment operators in the area, including the Korman Organization, which
operates a 1,500+ unit apartment complex, International City, which competes
with the Company's existing complex.  The Company believes the industry is
highly competitive.

Apartment complexes in the area similar to the one owned by the Company have
the following profiles:
                                                Company         Company
  Rents per month                Typical        12/31/01        12/31/00
  -------------------------      -------        --------        --------

  Studio                        $395 - $525        $450          $430
  One bedroom                   $525 - $750        $575          $545
  Two bedroom                   $640 - $850        $675          $650

  Annual rent increase 2001      3% - 6%          3% - 5%       3% - 5%

  Average occupancy 2001        93% - 97%        93% - 96%     93% - 96%


The information contained in the above table was derived from the following
sources:

       1)   The Philadelphia Apartment Research Report
            By:  Marcus & Millichap, March 31, 2001

       2)   The March 2001 and March 2001 CB Richard Ellis Rental Survey of
            Delaware County and Chester County, Pennsylvania

The Company believes that the general market is stable and that its units at
current rental rates are in line with competitive complexes in the area.

Because it costs more to build a new apartment unit than to acquire an
existing unit and due to lack of suitable construction sites in the area,
competition is limited to existing apartment complexes and should be
manageable.

Item 2.  Description of Property
---------------------------------

The Complex
------------

The Spring Village Apartment complex is a garden-type apartment complex
consisting of seven buildings containing 60 one-bedroom units, 49 two-bedroom
units and 15 studio units, located in Sharon Hill, Delaware County,
Pennsylvania. Construction features include brick veneer over concrete block
exterior walls, wood frame, asphalt shingle gable roofs, aluminum frame
windows and sliding patio doors.

                                   -8-
<PAGE>
Each unit is heated by gas fired hot water  baseboard heat. All units have
wall mounted air conditioners. The buildings  were built in 1966. The quality
of construction and current physical condition  of the units is believed by
the Company to be average. The Company is not  aware of any material adverse
environmental attributes of the property.  There  were seven inactive
underground storage tanks formerly used to store heating  oil for the
complex. The tanks were not regulated by the State of  Pennsylvania, and were
removed during 1997 by a qualified environmental  engineering firm.

The current real estate tax assessment equates to a market value of
$3,378,870. The assessed value for real estate taxes is $3,378,870 and the
real estate taxes paid for 2001 were $98,245. The tax basis as of December
31, 2001 of the Company's buildings and equipment was $3,470,853 and $243,474
respectively, with $1,580,346 in accumulated depreciation.  The land has a
tax basis of $263,727. Buildings and improvements are depreciated using the
straight line method over a 40 year life. Equipment is depreciated using the
150% declining balance method over a 10 year life. The Company owns an 80%
partnership interest in the Partnership which owns the property. The Property
has been substantially renovated and the Company does not anticipate the need
for substantial future renovations other than routine replacements. The
Company believes it has adequate insurance coverage.

The Company plans to make the following capital expenditures during the next
twelve months:

Replace appliances and equipment                $ 18,000
Replace soffits and fascia, painting               3,000
Grounds, landscaping, etc.                         3,000
                                                --------
Total                                           $ 24,000

All of the above capital expenditures are funded on an ongoing basis by
scheduled additions to and withdrawals from escrow accounts held by the first
mortgage holder.

No tenant occupies more than 10% of the leased space.  Substantially all
leases are for one year or less, and are for residential dwelling units.  A
sixty day notice is required for termination.  Substantially all of the
leases  expire within one year as is typical for apartment leases.

The prior five year rental history is summarized as follows:

          Gross Potential Rents    Occupancy        Average Annual Rent
Year  (Exclusive of other income)  Percentage        per square foot
-----  -------------------------   ----------       --------------------
1997       $783,367                 93                $10.00
1998       $797,894                 96                $10.18
1999       $813,946                 95                $10.39
2000       $840,088                 95.5              $10.72
2001       $861,582                 95                $11.00

Item 3. Legal Proceedings.
---------------------------

There are no pending material legal proceedings to which the Company or any
of its properties is subject.

                                   -9-
<PAGE>
Item 4.  Submission of Matters to a Vote of Security Holders.
--------------------------------------------------------------

None.



PART II.

Item 5.  Market for Common Equity and Related Stockholder Matters.
-------------------------------------------------------------------

       Market Information.  The Company's common stock is approved for
quotation on the NASD OTC Bulletin Board under the symbol "GVLA".  As of the
date of this Form 10-KSB, quotations were submitted by six market makers and
there was minimal public trading of the Company's stock at prices ranging
from $.20 to $.95.  As of March 20, 2002, there were 2,485,000 shares of
common stock outstanding.

       Holders.  There are approximately 450 holders of record of Gavella
common stock.  The Company estimates that there are at least another 175
shareholders whose stock is held in street name.

       Dividends.  Gavella has not declared or paid any cash dividends on its
common stock.  Gavella presently, and for the foreseeable future, intends to
retain all its earnings, if any, for the development of the Company's
business.  The declaration and payment of cash dividends in the future will
be at the discretion of the Board of Directors, and will depend upon a number
of factors, including among others, future earnings, operations, funding
requirements, the general financial condition of the Company, and such other
factors as the Board of Directors may deem relevant.

Recent Sales of Unregistered Securities
---------------------------------------

      The  following  information  sets  forth  certain  information  for all
securities of the Company sold during the quarter ending June 30, 2001
without registration under the Securities Act of 1933 (the "Securities
Act").  The following pertains to each of the transactions:

     .   There were no underwriters involved in any of the transactions.

     .   All of the securities issued were restricted common stock of the
Company, and each of the certificates issued was stamped with the following
restrictive legend:

"The shares represented by this certificate have not been registered under
the Securities Act of 1933.  The shares have been acquired for investment and
may not be sold, transferred or assigned in the absence of an effective
registration statement for these shares under the Securities Act of 1933 or
an opinion of the Company's counsel that registration is not required under
such Act."

                                   -10-
<PAGE>
     .   No form of advertising or general solicitation was utilized in
connection with any of the offers or sales of such securities.

     .   Redistribution of the common stock was subject to the provisions of
Rule 144 of the Securities Act.

     .   Each of the offerees were furnished with the Registrant's latest
Form 10-KSB, Form 10-QSB's for the fiscal periods subsequent to the end of
the fiscal period, and all forms 8-K filed by the Registrant since the end of
the fiscal period.

     .   Each of the purchasers represented that the purchaser was acquiring
the securities for the purchaser's own account, for investment only, and not
with a view toward the resale, fractionalization, division or distribution
thereof, and further, the investors each represented that they had no present
plans to enter into any contract, undertaking, agreement, or arrangement for
any such resale, distribution, division or fractionalization thereof.

     During the quarter ending December 31, 2001, 60,000 shares of the
Company's common stock were issued to two investors for consideration of
$30,000 cash, in reliance upon Rule 506 of Regulation D of the Securities
Act.



ITEM 6.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

Plan of Operation
-----------------

The Company intends to target its marketing and business activity to renting
apartment units to moderate income people who are not in a position to
acquire a home. Based on the Company's own experience over the past five
years and a review of market analysis reports published by others, the
Company believes there will continue to be a need in the marketplace for
moderately priced, well-maintained apartment rental units. This should
provide a stable rental income base and allow for future revenue growth
through modest rental increases near the rate of inflation.

The Company's long range plan is to reduce debt to around eighty percent of a
property's value.  To accomplish this, the Company plans to raise additional
capital through the sale of its securities in the future.

The Company advertises its units in local newspapers, by direct mail and
through promotional programs designed to maintain occupancy at or above 95%.


Results of Operations
----------------------

The following discussion and analysis should be read in conjunction with the
Consolidated Financial Statements and Notes thereto appearing elsewhere in
this Form 10-KSB.

                                      -11-
<PAGE>
2001 Compared To 2000

The Company reported total revenues of $856,157 in 2001, compared to $838,898
in 2000, an increase of $17,259, or 2.1%.  Several factors accounted for this
increase.  Occupancy decreased from 95.5% in 2000 to approximately 95% in
2001.  The small decrease in occupancy was more than offset by increases in
unit rents and tenant fees. The Company believes this was the result of
increased advertising, and reflects overall improvement in the desirability
of our apartments resulting from increased spending in prior years on
previously deferred maintenance.

Total operating expenses increased by $133,622, to $757,917.  Administrative
expenses increased by $103,800 to $272,446.  In 2001, there was an increase
in administrative expenses related to the operations of the apartment
complex, particularly bad debts.  There was also a significant increase in
public company corporate overhead.  Utilities expenses increased from $85,075
in 2000 to $121,407 in 2001 due primarily to an unusually mild winter in
2000, a 50% increase in the price of gas in 2001, and a sewer tax increase.
Operating and maintenance expenses declined from $122,912 in 2000 to $105,176
in 2001.  Decreases in material costs and subcontracts caused the decline.
Taxes and insurance increased by $9,607.  Depreciation and amortization
increased by $1,619 to $123,321 as a result of recent capital improvements
being depreciated.

Operating income decreased by $116,363, from $214,603 in 2000 to $98,240 in
2001.  The increase in revenues was offset by a much larger increase in
operating expenses, as discussed above.

Interest income decreased by $1,128 from $2,783 in 2000 to $1,655 in 2001,
due to lower interest rates. Interest expense decreased from $306,235 in 2000
to $305,033 in 2001.

During the second quarter ended June 30, 2001, the Company was notified by
the township that the township had under billed for sewer taxes in prior
years, and assessed a sewer tax of $64,984.  This is a one time assessment,
and is reflected as an other expense for the year ended December 31, 2001.

Equity earnings on investments, net, is summarized below:

                                   Gavella's proportionate share of
                                   net income or (loss) under the
                                   equity method of accounting
       Entity                          2001             2000
       ------                      --------------------------------

DATANET Office Solutions, Inc.         7,000              0
Eastern Envelopes & Graphics LLC      (3,750)             0
                                     -------          -------
Net earnings from
  equity investments                   3,250              0

Net loss increased from $88,849 in 2000 to $266,872 in 2001.  The Company
reported a basic net loss of ($.12) per share in 2001, compared to a  basic
net loss of ($.04) per share in 2000.

                                      -12-
<PAGE>
The Company is taxed as a C-corporation for federal and state income tax
purposes.  As such, the Company will pay taxes on its net income as defined
by the Internal Revenue Code.  No tax attributes of the Company flow through
to the shareholders except for the regular taxation of dividends paid, if
any.

2000 Compared to 1999

The Company reported total revenues of $838,898 and $808,058 in 2000 and
1999, respectively, an increase of $30,840 or 4%.  Occupancy was
approximately 95.5% and 95%, respectively. The higher occupancy and a small
increase in the average unit rental rate resulted in the increase in rental
revenue.

Total operating expenses increased from $584,006 in 1999 to $624,295 in 2000.

Administrative expenses increased to $168,646 in 2000 from $151,100 in 1999.
Utilities increased by $588.  Operating and maintenance expense increased
from $112,717 in 1999 to $122,912 in 2000.  Taxes and insurance increased by
$6,204, primarily due to expanded insurance coverage and a switch from
subcontractors to employees.  Depreciation increased by $5,756 to $121,702 in
2000, reflecting recent capital improvements being depreciated.  Operating
income decreased from $224,052 in 1999 to $214,603 in 2000, primarily due to
the increases in expenses discussed above, which were only partially offset
by increased revenues.

Net interest expense increased by $108 from $303,344 in 1999 to $303,452 in
2000.

Net loss increased from ($79,292) in 1999 to ($88,849) in 2000.  Basic net
loss per share was ($.04) in 1999 and ($.04) in 2000.


Liquidity and Capital Resources
-------------------------------

The Company's financial position weakened slightly in 2001, primarily due to
increases in expenses discussed above.  The Company does not believe these
expense increases are likely to recur.  The Company anticipates breakeven
cash flow in 2002.

At December 31, 2000 the Company had working capital of $14,633 including
cash held in escrow for anticipated future expenses.  At December 31, 2001,
the Company had working capital of $687.

On December 31, 1999, the Company had $77,275 in cash. During the year ending
December 31, 2000, the Company realized $30,000 in net proceeds from notes
payable, and $165,500 in contributed capital.  Operations provided an
additional $48,468.  The Company used $37,886 to repay mortgage notes
payable.  The Company used $65,518 to purchase property and equipment.  The
net increase in cash for the year was $14,035.  The Company had $91,310 in
cash on December 31, 2000, exclusive of $37,123 cash held in escrow accounts.


                                      -13-
<PAGE>
On December 31, 2000, the Company had $91,310 in cash.  During the year
ending December 31, 2001, the Company received $75,000 in net proceeds from
notes payable and $126,250 from the issuance of stock.  Operations used
$111,168.  The Company used $23,509 to purchase property and equipment,
invested $28,750 in two private companies, and reduced mortgage indebtedness
by $41,136.  The net decrease in cash for the year was $3,313.  The Company
had $87,997 in cash on December 31, 2001, exclusive of $59,241 cash held in
escrow accounts.

The Company's balance sheet is highly leveraged.  As discussed previously in
this Form 10-KSB, the Company plans to reduce this leverage through the
current and future equity offerings as well as by funds generated from
operations.  The Company  believes it can support operations and planned
capital expenditures for at least twelve months.  Thereafter, the Company's
continued success will be dependant upon its ability to maintain occupancy at
93% or above and to keep costs under control.

In the event that the Company's plans change or its assumptions change or
prove to be inaccurate, the Company may be required to seek additional
financing sooner than currently anticipated.  The Company has not identified
any potential sources of debt or equity financing and there can be no
assurance that the Company will be able to obtain additional financing if and
when needed or that, if available, financing will be on terms acceptable to
the Company.  As a result of the refinancing which occurred on September 19,
1997, the Company anticipates breakeven net cash flow after all scheduled
debt service in 2001, including principal payments totaling $44,669 on long
term debt.  There can be no assurance that the Company will be successful in
its efforts to generate sufficient cash flow to meet its scheduled debt
service or other cash requirements.

Planned Capital Expenditures
-----------------------------

Replace appliances and equipment                $ 18,000
Replace soffits and fascia, painting               3,000
Grounds, landscaping, etc.                         3,000
                                                --------
Total                                           $ 24,000

All of the above capital expenditures are funded on an ongoing basis by
scheduled additions to and withdrawals from escrow accounts held by the first
mortgage holder.

Forward Looking Statements
---------------------------

The Company is making this statement in order to satisfy the "safe harbor"
provisions contained in the Private Securities Litigation Reform Act of 1995.


                                      -14-
<PAGE>
The foregoing discussion includes forward-looking statements relating to the
business of the Company.  Forward-looking statements contained herein or in
other statements made by the Company are made based on management's
expectations and beliefs concerning future events impacting the Company and
are subject to uncertainties and factors relating to the Company's operations
and business environment, all of which are difficult to predict and many of
which are beyond the control of the Company, that could cause actual results
of the Company to differ materially from those matters expressed in or
implied by forward-looking statements.  The Company believes that the
following factors, among others, could affect its future performance and
cause actual results of the Company to differ materially from those expressed
in or implied by forward-looking statements made by or on behalf of the
Company:  (a) the effect of changes in interest rates; (b) the rental rate
and demand for apartment rental units; (c) fluctuations in the costs to
operate the properties owned by the Company; (d) uninsurable risks; (e)
general economic conditions; and (f) acts of terror.

                                      -15-
<PAGE>

Item 7.  Financial Statements.
-------------------------------


             GAVELLA CORP. AND SUBSIDIARIES
              CONSOLIDATED FINANCIAL STATEMENTS
                 DECEMBER 31, 2001 AND 2000

                      TABLE OF CONTENTS

                                                            PAGE
                                                            ----
  INDEPENDENT AUDITORS' REPORT..............................F-1

  CONSOLIDATED FINANCIAL STATEMENTS

     CONSOLIDATED BALANCE SHEETS............................F-2

     CONSOLIDATED STATEMENTS OF OPERATIONS..................F-3

     CONSOLIDATED STATEMENT OF CHANGES IN
     STOCKHOLDERS' DEFICIT..................................F-4

     CONSOLIDATED STATEMENTS OF CASH FLOWS .................F-5 - F-6

     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.............F-7 - F-17



                                   -16-

<PAGE>

INDEPENDENT AUDITORS' REPORT




To the Board of Directors and Stockholders
of Gavella Corp. and Subsidiary


     We have audited the accompanying consolidated balance sheets of GAVELLA
CORP AND SUBSIDIARY as of December 31, 2001 and 2000, and the related
consolidated statements of operations, changes in stockholders' deficit, and
cash flows for the years then ended.  These consolidated financial statements
are the responsibility of the Company's management.  Our responsibility is to
express an opinion on these consolidated financial statements based on our
audits.

     We conducted our audits in accordance with standards generally accepted
in the United States of America.  Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
consolidated financial statements are free of material misstatement.  An
audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the consolidated financial statements.  An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation.  We believe that our audits provide a reasonable basis for our
opinion.

     In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the financial position of GAVELLA
CORP AND SUBSIDIARY as of December 31, 2001 and 2000, and the results of
their operations and their cash flows for the years then ended in conformity
with accounting principles generally accepted in the United States of
America.




Moorestown, New Jersey
February 26, 2002

                                                            F-1
<PAGE>
                GAVELLA CORP. AND SUBSIDIARY
                 CONSOLIDATED BALANCE SHEETS
                 DECEMBER 31, 2001 AND 2000


                           ASSETS
                                               2001             2000

Rental property, net (Notes 3 & 4)           $3,128,812       $3,219,984
Cash (Note 3)                                    87,997           91,310
Cash held in escrow (Notes 3 & 5)                59,241           37,123
Accounts receivable, net of allowance
 for doubtful accounts of $8,068 and $0          24,154           15,388
Prepaid expenses                                 58,831           53,494
Deferred financing costs, net (Note 3)           49,611           58,251
Investments at equity (Notes 3&6)                32,000              -0-
                                             ----------       ----------
     Total Assets                            $3,440,646       $3,475,550
                                             ==========       ==========

                   LIABILITIES AND STOCKHOLDERS' DEFICIT

Liabilities
  Mortgage notes payable (Note 7)            $3,276,513       $3,317,649
  Notes payable (Note 8)                        250,000          175,000
  Accrued interest                               22,342           41,469
  Accounts payable                                8,207            5,130
  Accrued expenses                               85,636           22,462
  Security deposits payable (Note 3)             80,099           76,965
  Other liabilities                              33,252           11,656
                                             ----------       ----------
         Total Liabilities                    3,756,049        3,650,331

Minority Interest (Note 2 & 3)                     -0-              -0-

Stockholders' Deficit (Note 1, 3 & 10)
    Common  stock,  $.001  par  value,
     5,000,000 and 3,000,000
      shares authorized,
      2,485,000 and 2,000,000
      issued and outstanding                     2,485             2,000
   Additional paid-in capital                  333,265           207,500
   Accumulated deficit                        (651,153)         (384,281)
                                             ----------       ----------
     Total stockholders' deficit              (315,403)         (174,781)
                                             ----------       ----------
     Total Liabilities and Deficit           $3,440,646       $3,475,550
                                            ===========       ==========


The  accompanying  notes  are  an  integral  part  of  these
consolidated  financial statements.  Specific  reference  is
made  to  Note 1 where the basis of presentation  for  these
financial statements is described.



                                                       F-2
<PAGE>
                   GAVELLA CORP. AND SUBSIDIARY
             CONSOLIDATED STATEMENTS OF OPERATIONS
       FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000

                                              2001           2000

Revenues
  Rental real estate                       $856,157        $838,898
                                           --------        --------
     Total revenues                         856,157         838,898

Operating expenses
  Administrative expenses                   272,446         168,646
  Utilities expense                         121,407          85,075
  Operating and maintenance                 105,176         122,912
  Taxes and insurance                       135,567         125,960
  Depreciation and amortization             123,321         121,702
                                           --------        --------
     Total operating expenses               757,917         624,295
                                           --------        --------
Operating income                             98,240         214,603

Other income (expense)
  Interest income                             1,655           2,783
  Interest expense                         (305,033)       (306,235)
  Sewer tax assessment                     ( 64,984)            -0-
  Equity in earnings of
   investments, net                           3,250              -0-
                                           --------        --------
      Total other income (expense)         (365,112)       (303,452)
                                           --------        --------
Net loss                                  $(266,872)       $(88,849)
                                           ========        ========
Basic net loss per share (Notes 1
  and 3)                                  $    (.12)       $   (.04)
                                           ========        ========
Average   number  of  common   shares
outstanding - basic                       2,213,750       2,000,000
                                          =========       =========








The accompanying notes are an integral part of these
consolidated financial statements.  Specific reference is
made to Note 1 where the basis of presentation for these
financial statements is described.


                                                       F-3
<PAGE>
                          GAVELLA CORP & SUBSIDIARY
          CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT
              FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000

<TABLE>
<S>                                      <C>          <C>       <C>        <C>          <C>          <C>
                                           Investment                       Additional                    Total
                                               By        Common Stock        Paid-in    Accumulated  Stockholders'
                                           Predecessor  Shares    Amount     Capital      Deficit       Deficit
                                         ------------- ---------  --------- -----------  ------------  -----------
Balance, January 1, 2000                   (251,432)                                                    (251,432)

Contribution from predecessor                 6,000        0         0            0             0          6,000

Net loss prior to initial capitalization    (40,949)       0         0            0             0        (40,949)

Initial capitalization resulting
 from contribution of assets and
 liabilities from predecessor
 (Note 1)                                   286,381    2,000,000   2,000        48,000      (336,381)         0

Additional contributions from
 predecessor, net of stock issuance cost         0         0         0         159,500          0        159,500

Net loss subsequent to
   initial capitalization                        0         0         0            0          (47,900)    (47,900)
                                         -----------   ---------  --------- -----------  ------------  -----------
Balance, January 1, 2001                 $       0     2,000,000  $ 2,000    $ 207,500   $  (384,281)  $(174,781)

Issuance of common stock, net
  of stock issuance cost of $10,000              0       485,000      485      125,765          0        126,250

Net Loss                                         0         0         0            0         (266,872)   (266,872)
                                         -----------   ---------  --------- -----------  ------------  -----------
Balance, December 31, 2001               $       0     2,485,000  $ 2,485    $ 333,265   $  (651,153)  $(315,403)


</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.  Specific reference is made to Note 1 where the basis of
presentation for these statements is described.
                                                                 F-4
<PAGE>
                GAVELLA CORP. AND SUBSIDIARY
            CONSOLIDATED STATEMENTS OF CASH FLOWS
       FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000

                                               2001         2000
                                               ----         ----
Cash flows from operating activities:
  Net loss                                  (266,872)     (88,849)
   Adjustments to reconcile net loss
    to net cash provided by
      operating activities:
     Depreciation                            123,321      121,702
     Bad debt provision                        8,068            0
     Equity in earnings of
      investments, net                        (3,250)           0
    (Increase) decrease in:
      Accounts receivable                    (16,834)      (2,402)
      Prepaid expenses                        (5,337)      (  891)
      Cash held in escrow                    (22,118)      14,458
     Increase (decrease) in:
      Accounts payable                         3,077      (12,140)
      Accrued interest                       (19,127)        (167)
      Accrued expenses                        63,174        1,689
      Other liabilities                       21,596        7,387
      Security deposits payable                3,134        7,681
                                             -------      -------
Net cash (used in) provided by
   operating activities                     (111,168)      48,468
                                             -------      -------
Cash flows from investing activities:
 Purchases of property and equipment         (23,509)     (65,518)
 Purchase of investments                     (28,750)         -0-
                                             -------      -------
Net cash used in investing activities        (52,259)     (65,518)
                                             -------      -------
Cash flows from financing activities:
 Repayment of mortgage  notes payable        (41,136)     (37,886)
  Proceeds from notes payable                128,000       30,000
  Payments on notes payable                  (53,000)    (126,529)
  Contributed additional capital                   0      165,500
  Issuance of common stock                   126,250          -0-
                                             -------      -------
Net cash provided by financing activities    160,114       31,085
                                             -------      -------
(Decrease) increase in cash                  ( 3,313)      14,035

Cash, beginning                               91,310       77,275
                                             -------      -------
Cash, ending                                 $87,997      $91,310
                                             =======      =======







                                   F-5
<PAGE>
              GAVELLA CORP. AND SUBSIDIARY
      CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
       FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000

SUPPLEMENTARY DISCLOSURE OF CASH FLOW INFORMATION



SUPPLEMENTARY DISCLOSURE OF CASH FLOW INFORMATION:

                                                2001        2000

Cash paid for interest                       $324,160  $ 306,402
                                             ========    =======
Cash paid for income taxes                   $      0  $       0
                                             ========    =======

Issuance of common stock during the year ended December 31, 2001 was as
follows:

    Issuance of common stock, net of
       stock issuance costs of $10,000           $126,250
                                                 --------
    Net proceeds from issuance of
       common stock                              $126,250
                                                 ========

Non-cash  investing and financing
 activities:

     On August 7, 2000, the assets and liabilities of Spring
Village  Holdings, Inc., a wholly owned subsidiary  of  APTA
Holdings, Inc., were transferred to the Company in  exchange
for  2,000,000 shares of Gavella common stock.  In addition,
APTA  Holdings  contributed  $200,000  to  the  Company  and
incurred $40,500 of stock issuance costs. See Note  12.   The
transaction is summarized as follows:

     Additional  contribution   from
     predecessor                      200,000
     Stock issuance costs paid        (40,500)
                                      -------
     Cash received from predecessor  $159,500
                                     ========







The accompanying notes are an integral part of these
consolidated financial statements. Specific reference is
made to Note 1 where the basis of presentation for these
financial statements is described.


                              F-6
<PAGE>
                 GAVELLA CORP. AND SUBSIDIARY
         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 DECEMBER 31, 2001 AND 2000

Note 1 - Organization and Basis of Presentation

     On June 21, 2000, Gavella Corp.  ("Gavella")  was formed for the
purpose of effectuating a spin-off of the real estate operations of APTA
Holdings, Inc. ("APTA").   APTA is a financial services holding company.
Through its subsidiaries, APTA was engaged in two lines of business: owning
and operating income-producing real estate, and the originating and servicing
of loans to businesses and consumers, generally secured by real estate or
other assets.

On August 7, 2000,  APTA transferred all of the assets and liabilities of its
100% wholly owned subsidiary, Spring Village Holdings, Inc. to Gavella in
exchange for 2,000,000 shares of $.001 par value Gavella common stock.  On
December 27, 2000, the common stock of Gavella was spun off to the common
shareholders of APTA.  Eligible APTA shareholders of record on December 1,
2000 ("Dividend Record Date") received one share of Gavella's common stock
for each share of APTA's common stock held on the Dividend Record Date.  On
December 27, 2000, 2,000,000 shares of $.001 par value Gavella common stock
were issued to eligible APTA shareholders.

     The accompanying consolidated financial statements include the periods
prior to the spin off and include only the assets and liabilities contributed
by APTA as described above.  These financial statements have been prepared
using APTA's historical basis of the assets and liabilities and the
historical results of operations and have been prepared in accordance with
the rules and regulations of the Securities and Exchange Commission
applicable for subsidiaries which have been spun off.  These rules stipulate
that statements shall be prepared as if the entity had existed prior to the
existence of the new company.  Such statements are not those of a real
entity, but describe a hypothetical "accounting predecessor" to Gavella Corp.
The financial statements presented include all of the operations of the
Company's predecessor prior to the spin-off, and have been accounted for in a
manner similar to that of a pooling of interests.

In management's opinion, the accompanying consolidated financial statements
include all common and corporate level expenses incurred on behalf of the
accounting predecessor by APTA.  Management has allocated such expenses based
on its best estimate of actual time and effort expended for the benefit of
Gavella Corp., and believes such allocation to be reasonable.  Additional
corporate overhead expenses of $6,000 in 2000 have been allocated to Gavella
and are included in administrative expenses in the accompanying consolidated
statement of operations with the offsetting credit amount reflected as
contributed additional capital.

Net loss per Share

     Basic net loss per share is computed on the basis of the weighted
average number of shares outstanding each period and excludes any dilutive
effects of options, warrants, and convertible securities.  Dilutive earnings
per share is computed giving effects to dilutive stock equivalents.  Stock
options to purchased 250,000 shares for 2001 were not dilutive and therefore,
were not included in the computations of dilutive earnings per share.  The
Company had no potential common shares at December 31, 2000.
                                                       F-7

<PAGE>
                GAVELLA CORP. AND SUBSIDIARY
         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 DECEMBER 31, 2001 AND 2000

Note 2 -Nature of Operations

The assets acquired by Gavella were APTA's wholly owned  subsidiary, Spring
Village Holdings, Inc.  The following discussion includes the business of the
subsidiary and incorporates the prior activities of APTA.

The Company has, through its wholly owned subsidiary, Spring Village
Holdings, Inc., an 80% partnership interest in SVG Properties, L.P. (T/A
Spring Village Apartments), which owns a 124 unit residential apartment
complex in Sharon Hill, Pennsylvania.  Spring Village Holdings, Inc. directly
manages the business activities of the partnership. The Company's 80%
partnership interest is comprised of a 4.5% general partnership interest and
75.5% limited partnership interest.  The remaining 20% limited partnership
interests are held by unrelated individuals.  The terms of the partnership
agreement provide that ownership of capital and allocation of net profits or
losses and distributions of cash flow are to be in proportion to each
partner's interest.

The Company also makes equity investments in small private companies with
well defined growth plans and provides them assistance in implementing their
business plans.

Note 3 - Summary of Significant Accounting Policies

Principles of Consolidation

     The consolidated financial statements include the accounts of Gavella
Corp., and its wholly owned subsidiary, Spring Village Holdings, Inc. Spring
Village Holdings, Inc. is the sole general partner of SVG Properties, L.P.
and completely controls the partnership.  Accordingly, the accounts of Spring
Village Holdings, Inc. include its 80% partnership interest in SVG
Properties, L.P. (T/A Spring Village Apartments). All significant
intercompany transactions and accounts have been eliminated.

     For financial reporting purposes, the assets, liabilities, results of
operations and cash flows of the partnership are included in the Company's
consolidated financial statements.  The outside investors' limited
partnership interests have been reflected as minority interests.

Use of Estimates

     The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts reported in the financial statements and
accompanying notes.  Actual results could differ from those estimates.

Rental Real Estate Revenues

     Rental real estate revenues include rental income and fees earned from
tenants for late charges, laundry income and other housing related services.
Tenant fees for the years ended December 31, 2001 and 2000 were $36,703 and
$35,953.

                                                           F-8
<PAGE>
                GAVELLA CORP. AND SUBSIDIARY
         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 DECEMBER 31, 2001 AND 2000


Note 3 - Summary of Significant Accounting Policies (continued)

Rental Real Estate Revenues (continued)

     The Company earns rental income under operating lease agreements with
tenants.  Rental income is recognized on a straight-line basis over the
applicable lease term. The associated fees and other income are recognized as
earned.

Rental Property

     Rental property is recorded at cost.  Depreciation is provided using
the straight-line method over its estimated useful life.  The estimated
useful lives of the major classes of rental property, as determined by the
Company's management, are as follows: buildings and improvements - 40 years,
building equipment - 10 years, office equipment - 5 years, transportation
equipment - 5 years, furniture and fixtures - 3 years.  Maintenance and
repairs are charged to expense as incurred; major renewals and betterments
are capitalized.  When items of property are sold or retired, the related
cost and accumulated depreciation are removed from the accounts and any gain
or loss is reflected in operations.

     The Company reviews the carrying value of the rental property for
impairment whenever events and circumstances indicate that the carrying value
of an asset may not be recoverable from the estimated future cash flows
expected to result from its use and eventual disposition.  In cases where
undiscounted expected cash flows are less than the carrying value, an
impairment loss is recognized equal to an amount by which the carrying value
exceeds the fair value of assets.  Based on these reviews, there were no
adjustments to the carrying value of long-lived assets for the years ended
December 31, 2001 and 2000.

Cash Held in Escrow

     Cash held in escrow includes amounts held by the lender to provide
funds necessary for the payment of taxes, insurance, replacements and other
specified capital expenditures of the Spring Village Apartments.

Investments

     The Company uses the equity method of accounting for companies and
other investments in which the Company has significant influence.
Significant influence is generally deemed to exist if the common stock
ownership or partnership equity is between 20% and 50%, although other
factors, such as representation on the investee's Board of Directors, are
considered in determining whether the equity method of accounting is
appropriate.  The Company's records its share of earnings as income and
increases the investment by the equivalent amount.  Dividends and losses are
recorded as a reduction of the investment.

                                                       F-9
<PAGE>
                GAVELLA CORP. AND SUBSIDIARY
         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 DECEMBER 31, 2001 AND 2000

Note 3 - Summary of Significant Accounting Policies (continued)

Deferred Financing Costs

     Deferred financing costs, consisting primarily of debt issue costs, are
amortized using the straight-line method over ten years, the term of the
related debt. Amortization expense for the years ended December 31, 2001 and
2000 was $8,640.  Accumulated amortization as of December 31, 2001 and 2000
was $36,720 and $28,080.

Security Deposits Payable

     Security deposits payable represent amounts received from tenants and
are included in cash on the accompanying balance sheets.  As of December 31,
2001 and 2000, the tenant security deposits are fully funded.  Tenant
security deposits are guaranteed by a stockholder.

Advertising

     The Company expenses all advertising as incurred.  Direct response
advertising for which future economic benefits are probable and specifically
attributable to the advertising is not material.  Advertising expense for the
periods ended December 31, 2001 and 2000 was $14,032 and $12,505.

Stock-Based Compensation

     The Company has adopted the disclosure-only provisions of SFAS No. 123
"Accounting for Stock-Based Compensation."  The Company will apply APB No.
25, "Accounting for Stock Issued to Employees," to account for stock options
using the intrinsic value method. Under APB No. 25, compensation cost for
stock options, if any, is measured as the excess of the quoted market price
of the Company's stock at the date of grant over the cost to acquire the
stock.  Accordingly, no compensation cost has been recognized in the
financial statements for stock options issued to employees since the options
were granted at or above the quoted market price on the date of grant.  Stock
options granted to consultants and other non-employees are recorded at fair
value in accordance with SFAS No. 123.  SFAS No. 123 further requires
companies using the intrinsic value method to make certain proforma
disclosures using the fair value method.  Additional disclosures are included
in Note 10.

Income Taxes

     The Company accounts for income taxes in accordance with Statement of
Financial Accounting Standards (SFAS) No. 109, "Accounting for Income Taxes."
Under the liability method prescribed by SFAS No. 109, a deferred asset or
liability is determined based on differences between the financial statement
and tax basis of assets and liabilities as measured by the enacted tax rates
that will be in effect when these differences reverse.  Tax credits are
recorded as a reduction in income taxes.  Valuation allowances are provided
if, it is more likely than not, that some or all of the deferred tax assets
will not be realized.

                                                          F-10
<PAGE>
                GAVELLA CORP. AND SUBSIDIARY
         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 DECEMBER 31, 2001 AND 2000



Note 3 - Summary of Significant Accounting Policies (continued)

Fair Value

     The Company's financial instruments consist primarily of cash, accounts
receivable, accounts payable, investments, accrued expenses and debt.  The
carrying amounts of the Company's financial instruments, excluding debt,
approximate fair value due to the short-term nature of these instruments.
The Company's debt approximates fair value based on borrowing rates currently
available to the Company.

Statement of Cash Flows

     For purposes of the statements of cash flows, the Company considers all
highly liquid investments purchased with a term to maturity of three (3)
months or less at the time of acquisition to be cash equivalents.


Note 4 - Rental Property

     Rental property at December 31, 2001 and 2000 consisted of the
following:

                                        2001      2000

Land                               $   292,792     $   292,792
Building and improvements            3,221,527       3,207,942
Building equipment                     146,556         136,632
Office equipment                        35,563          35,563
Transportation equipment                42,428          42,428
Furniture and fixtures                   5,180           5,180
                                     ---------       ---------
                                     3,744,046       3,720,537

Less accumulated depreciation        ( 615,234)      ( 500,553)
                                     ---------       ---------
Rental property, net               $ 3,128,812     $ 3,219,984
                                     =========       =========

     Depreciation expense for the periods ended December 31, 2001 and 2000
was $114,681 and $113,062.




                                                          F-11
<PAGE>
                GAVELLA CORP. AND SUBSIDIARY
         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 DECEMBER 31, 2001 AND 2000

Note 5 - Cash Held in Escrow

     Cash held in escrow at December 31, 2001 and 2000 consisted of the
following:
                                                 2001      2000
                                                 ----      ----

     Mortgage escrow deposits                $43,208     $32,471
     Reserve fund for replacements            16,033       2,832
     Specified work escrow                       -0-       1,820
                                             --------    -------
                                             $59,241     $37,123
                                             ========    =======
Note 6 - Investments

At December 31, 2001, the Company's equity-method investees and the Company's
approximate ownership interest in each investee, based on outstanding shares
or member interests consisted of the following:
                                                          Percentage
                                                2001      Ownership
                                            ---------     -----------
DataNet Office Solutions, Inc.              $  32,000         14.29%
Eastern Envelopes & Graphics, LLC                -0-          20.00%
                                            ---------
                                            $  32,000
                                            =========

     During the year ended December 31, 2001, the Company contributed
$25,000 to DataNet Office Solutions, Inc. and realized earnings from its
investment of $7,000.  The Company also contributed $3,750 to Eastern
Envelopes & Graphics, LLC ("Eastern") and realized a loss from its investment
of $7,672 during the year.  For financial statement purposes, the Company's
investment in Eastern has been adjusted to a carrying amount of $0 as of
December 31, 2001.

Note 7 - Mortgage Notes Payable

     Mortgage notes payable at December 31, 2001 and 2000 consisted of the
following:
                                                2001        2000
Mortgage  note  payable  to   First
Union National Bank in monthly
installments  of $17,962 including
interest  at 7.78%, due  October
2007, secured by first mortgage
on rental property, assignment of
leases, rents and  security
deposits, substantially
all assets of a subsidiary, and a
limited payment and performance
guaranty of a stockholder                  $2,396,818     $2,424,702

                                                                       F-12
<PAGE>
                 GAVELLA CORP. AND SUBSIDIARY
         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 DECEMBER 31, 2001 AND 2000

Note 7 - Mortgage Notes Payable (continued)
                                                   2000           2000
Mortgage  note payable to  Resource
Properties, Inc. ("RPI") in  monthly
installments of $7,964 including
interest at 9.28%, (or 100% of the
subsidiary's net cash  flow,  as
defined in the Agreement, if less),
due October 2022, secured by  second
mortgage  on  rental property and
the common stock of a subsidiary                 879,965       892,947
                                              ----------    ----------
                                              $3,276,513    $3,317,649
                                              ==========    ==========

     RPI was granted an option to purchase the rental property for $1.00
subject to the first and second mortgages in the event of default.

     Maturities of mortgage notes payable as of December 31, 2001 are as
follows:

             2002                              44,669
             2003                              48,506
             2004                              52,676
             2005                              57,207
             2006                              62,131
             Thereafter                     3,011,324
                                            ---------
                                           $3,276,513
                                            =========
Note 8 - Notes Payable

     Notes payable at December 31, 2001 and 2000 consists of the following:

                                                 2001               2000

Note payable to related parties with
interest at 15% and 12% in 2001
and 2000, due January 2003, unsecured          150,000            25,000

Note payable to stockholder  in
monthly payments of $1,688 (or net
cash flow after all debt service
of  a subsidiary, if less), bears
interest at 15% and 12% in 2001 and
2000, due January 2004, unsecured              100,000           150,000
                                               -------           -------
                                              $250,000          $175,000
                                               =======           =======

                                                       F-13
<PAGE>
                 GAVELLA CORP. AND SUBSIDIARY
         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 DECEMBER 31, 2001 AND 2000



Note 8 - Notes Payable (continued)

     In January 2002, the note payable to the related party was increased to
$175,000  with monthly payments of interest only at 12% and becoming due
December 2004.

Interest expense paid to stockholders and related parties in 2001 and 2000
was $35,437 and $31,039. Accrued interest of $18,750 was payable to
stockholders and related parties at December 31, 2000.

Note 9 - Income Taxes

     The Company's provision for income taxes for the years ended December
31, 2001 and 2000 consists of the following:

                              2001      2000
          Current
            Federal           -0-         -0-
            State             -0-         -0-
          Deferred            -0-         -0-
                            -----       -----
                            $ -0-       $ -0-
                            =====       =====
      The  income  tax  provision for continuing  operations varied  from
the federal statutory tax rate as follows  for each year:

                                     2001          2000

          U.S. Statutory Rate      (   15%)       ( 15%)
          State income taxes       (    9%)       (  9%)
          Valuation allowance          24%          24%
                                   -------        ------
                                        0%           0%
                                   =======        ======

     Deferred income taxes (benefit) reflect the tax effects of  temporary
differences between the carrying  amounts  of assets and liabilities for
financial reporting purposes  and the  amounts  used  for  income tax
purposes,  and  the  tax effects of net operating losses that are available
to offset future  taxable  income.   Significant  components  of   the
Company's deferred tax assets at December 31, 2001 and 2000 are as follows:

                                     2001        2000
          Net operating loss
            carryforwards         $203,760   $  141,270
          Valuation allowance     (203,760)    (141,270)
                                 ---------    ---------
                                  $  -0-     $     -0-
                                 =========    =========

                                                                 F-14
<PAGE>
                GAVELLA CORP. AND SUBSIDIARY
         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 DECEMBER 31, 2001 AND 2000



Note 9 - Income Taxes (continued)

Based on the Company's history of recurring losses, there is uncertainty as
to the realization of the net operating loss carryforwards.  Accordingly, a
valuation allowance has been provided for those deferred tax assets which
management believes it is more likely than not that the tax benefit will not
be realized.  At December 31, 2001, the Company has approximately $850,000 of
net operating loss carryforwards to offset future taxable income for both
federal and state income tax purposes, expiring in various years through 2020
for federal purposes and 2007 for state purposes.

Note 10 - Stockholder's Equity

     On May 30, 2001, the authorized shares of the common stock of the
Company increased from 3,000,000 to 5,000,000.

Stock Based Compensation

     In May 2001, the Company adopted the 2001 Stock Option and Stock
Issuance Plan, which provides for, among other incentives, the granting to
officers, directors, employees and consultants options to purchase shares of
the Company's common stock.  Options are generally exercisable at the fair
market value on the date of grant over a five year period expiring through
2006.  The maximum shares of common stock which may be issued under the plan
is initially 500,000 shares, of which 250,000  shares of common stock are
available for future issuances under the plan at December 31, 2001.    Other
shares under the plan are to be issued at fair market value on the date of
issuance.

     During the year ended December 31, 2001, 250,000 shares were granted to
two officer/director/stockholders of the Company with an exercise price of
$.30 per share, representing at least 110% of the fair market values on the
date of grant.  No options were exercised during the year ended December 31,
2001.  There were no non-employee stock options granted during the year.

     A summary of stock option activity for the year ended December 31, 2001
is presented below:


                                                            Exercise Price
                                                Shares          Per Share

     Options outstanding at January 1, 2001       -0-
     Granted in 2001                            250,000         $  .30
                                                -------
     Options outstanding and exercisable at
       December 31, 2001                        250,000          $ .30
                                                =======



                                                                 F-15
<PAGE>
                 GAVELLA CORP. AND SUBSIDIARY
         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 DECEMBER 31, 2001 AND 2000


Note 10 - Stockholder's Equity (continued)

Pro-Forma Value Disclosures

     The Company accounts for all plans under APB Opinion No. 25, under
which no compensation cost has been recognized since all options granted
during 2001 have been granted based on the fair market value of the Company's
common stock.  Had compensation cost for these plans been determined in
accordance with SFAS No. 123, the Company's net loss and net loss per common
share for the year ended December 31, 2001 would have been as follows:

     Net loss                                  ($     274,757)
                                                ===============
     Basic net loss per common share           ($         .12)
                                                ===============

Under SFAS No. 123, the fair value of each option was estimated on the date
of grant using the Black Scholes option-pricing model.  Based on the
assumptions presented below, the weighted average fair value of options
granted was $ .03 per option in 2001.

Expected life of options in years        5
Risk-free interest rate                  5.76%
Expected volatility                     25.17%
Dividend yield                           0.00%

Note 11 - Other Expense

     During the year ended December 31, 2001, the Company was notified by
the township that the township had under billed for sewer taxes in prior
years, and assessed a sewer tax of $64,984.  This is a one time assessment,
and is reflected as an other expense for the year ended December 31, 2001.


Note 12 - Related Party Transactions

Stockholders' Deficit

     Stock issuance costs include $10,000 and $25,000 in 2001 and 2000 paid
to companies owned by two stockholders/officers/directors of the Company in
connection with the preparation and filing of the Company's registration
statement.


                                                                 F-16
<PAGE>
                GAVELLA CORP. AND SUBSIDIARY
         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                 DECEMBER 31, 2001 AND 2000



Note 12 - Related Party Transactions (continued)

Management Fees

     A company which is owned by a stockholder/officer/director provides
certain management and administrative services to the Companies.  Management
fees for the years ended December 31, 2001 and 2000 were $74,500 and $50,100.
Included in the accrued expenses are management fees payable of $3,950 at
December 31, 2000.

Legal Fees

     A law firm which is owned by a stockholder/officer/director provides
legal and administrative services to the Company.  Legal fees for the years
ended December 31, 2001 and 2000 were $22,500 and $12,500.

Leases

     The Company leases its office space from a company that is owned by a
stockholder.  Monthly rental payments are $800 per month.  Rent expense for
the years ended December 31, 2001 and 2000 was $9,600 and $4,050.










                                                                 F-17
<PAGE>
Item 8.  Changes In and Disagreements With Accountants on
         Accounting and Financial Disclosure
-----------------------------------------------------------

None.


PART III

Item 9.  Directors, Executive Officers, Promoters and Control Persons;
         Compliance with Section 16(a) of the Exchange Act
-----------------------------------------------------------------------

The following table sets forth information with respect to the executive
officers, key personnel, directors and nominees to become directors of the
Company:
                              Age               Title
                              ----              ------

Harry J. Santoro, CPA          49               President, Treasurer and
                                                Director

Stephen M. Robinson, Esq.      59               Vice President, Secretary
                                                and Director


Harry J. Santoro.   Mr. Santoro is 49 years old and holds a Bachelor of
Science Degree in Accounting from Drexel University, Philadelphia, PA, where
he graduated Summa Cum Laude.  He began work in 1975 with Haefele, Van Sciver
& Co., a local certified Public Accounting firm.  Three years later he became
a Certified Public Accountant and was made a partner in the firm.  The firm's
name was changed to Haefele, Van Sciver, Santoro & Co.  While at the firm he
provided tax and financial planning services to individuals and businesses in
a wide range of industries, including real estate.  He left the  firm in 1982
to form a consulting company and to invest in real estate.  He is experienced
in tax and financial planning, particularly to businesses, related to complex
transactions including mergers, acquisitions and securities offerings.  He is
currently  engaged in real estate investments and apartment management as
principal and  President of H. James Santoro, Inc. as well as the Company.
He also offers consulting services related to mergers and acquisitions.

Stephen M. Robinson.  Mr. Robinson, who is 59 years old, is admitted to
practice law in the State of New Jersey, and maintains a full time legal
practice concentrating on corporations, securities and associated general
practice matters.  He received a B.A. from Rutgers University in 1964 and a
J.D. from Rutgers Law School in 1967.  From 1970 to 1973, Mr. Robinson was an
assistant county prosecutor for Camden County, New Jersey, and from 1973 to
1978, he was an attorney with the United States Securities and Exchange
Commission.  He returned to private practice in 1978, and has been
continuously involved in the legal aspects of public and private offerings of
securities, other '33 Act filings,'34 Act filings for public companies and
securities-oriented litigation.


                                      -17-
<PAGE>
All directors hold office until the next annual meeting of stockholders or
the election and qualification of their successors.  Directors of the Company
do not receive any compensation for their services as members of the Board of
Directors, but are entitled to reimbursement for expenses incurred in
connection with their attendance at Board of Directors' meetings.  Officers
are appointed by the Board of Directors and serve at the discretion of the
Board.

ITEM 10.  EXECUTIVE COMPENSATION.


     The following table sets forth the compensation of the named executive
officers for each of the Registrant's last three completed fiscal years.

                           Summary Compensation Table

<TABLE>
<CAPTION>

                                                                      Long Term Compensation
                                                                      ----------------------
                                  Annual Compensation                          Awards             Payouts
                                  -------------------                          ------             -------
                                                       Other                                       Long-
Name and                                               Annual       Restricted        Shares       Term      All other
Principle                                              Compen-        Stock           Underlying  Incentive   compen-
Position       Year     Salary ($)     Bonus ($)      sation ($)     Awards ($)        Options    Plans ($)  sation ($)
---------      ----     ----------     ---------      ----------    -----------       ---------   ---------  ----------
<S>            <C>       <C>           <C>            <C>           <C>               <C>         <C>        <C>
Harry J.       2001       0             0             $74,500(1)        0              125,000     0           0
Santoro,       2000       0             0             $62,600(1)        0                    0     0           0
President,     1999       0             0             $45,000(1)        0                    0     0           0
Treasurer


Stephen M.     2001       0             0             $22,500(2)         0             125,000     0           0
Robinson,      2000       0             0             $12,500(2)         0                   0     0           0
Vice Pres.,    1999       0             0             $     0            0                   0     0           0
Secretary

</TABLE>

-----------------
(1)  Includes fees payable to H. James Santoro, Inc. for management and for
administrative services rendered.

(2)  Includes fees payable to Stephen M. Robinson, P.A. as corporate counsel.

Option Grants in Last Fiscal Year
---------------------------------

     The   following  table  sets  forth  information  concerning options
granted  to  the  executives  named  in   the   Summary Compensation  Table
above during the year  ended  December  31, 2001.

                                   -18-
<PAGE>

<TABLE>
<CAPTION>
                                  Individual Grants
                                  ------------------
               Number of      % of Total
               Securities     Options        Exercise                    Grant Date
               Underlying     Granted to     or Base                   Fair Value ($)(2)
               Options        Employees in   Price     Expiration   -------------------
Name           Granted (1)    Fiscal Year     ($/Sh)   Date         Per Share   Total $
-----          ------------   -------------  --------- -----------  ---------   --------
<S>            <C>            <C>           <C>        <C>          <C>         <C>
Stephen M.
Robinson       125,000         50%           $.30      07/31/2006    $.03154    $3,943

Harry J.
Santoro        125,000         50%           $.30      07/31/2006    $.03154    $3,943
               -------        -----                                            -------
Total          250,000        100%                                              $7,885

</TABLE>

(1) The options are fully exercisable without restriction
(2) The Company uses the Black-Scholes option pricing method to calculate the
fair value of stock options as of the date of the grant.

Aggregated Option Exercises in Last Fiscal Year and Year End Option Values
--------------------------------------------------------------------------

     The following table sets forth information concerning option exercises
during  the last fiscal year and  outstanding  options held  as  of  December
30, 2001 by the executive  named  in  the Summary Compensation Table above.


<TABLE>
<CAPTION>

                                   Number of Securities     Value of Unexercised
                                       Underlying           In-the-Money
                                   Unexercised Options at      Options at
                                     Fiscal Year End (#)    Fiscal Year end (2)
               Shares              ----------------------   --------------------
               Acquired on       Value         Exercisable/    Exercisable/
Name           Exercise (#)    Realized (1)   Unexercisable   Unexercisable
-----          ------------    ------------   --------------  -------------
<S>            <C>            <C>             <C>             <C>
Stephen M.
Robinson          0              0             125,000/  0         $0  / $0

Harry J.
Santoro           0              0             125,000/  0         $0  / $0
</TABLE>

(1) Value realized is determined by subtracting the exercise price from the
fair market value on the date of exercise.

(2) Value of unexercised options is determined by subtracting the exercise
price from the fair market value at December 31, 2001.

Employment and Consulting Agreements
-------------------------------------

There are no employment agreements with the officers of the Company.

                                      -19-
<PAGE>
ITEM 11.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The following table sets forth certain information as of December 31, 2001
with respect to the beneficial ownership of the common stock by each
beneficial owner of more than 5% of the outstanding shares thereof, by each
director, each nominee to become a director and each executive officer named
in the Summary Compensation Table and by all executive officers, directors
and nominees to become directors of the Company as a group.

                        #  Shares of
Name and Address of     Common Stock          % Outstanding
Beneficial Owner        Beneficially            Common Stock
                          Owned <F1>        Beneficially Owned
------------------      ---------------     -----------------------
Stephen M. Robinson
172 Tuckerton Road
Medford, NJ   08055          760,893<F2>               29.15%

Harry J. Santoro
215 West Main Street
Maple Shade, NJ 08052        741,164<F3>               28.40%

All Directors and
Officers as a
group (2 persons)          1,502,057                   54.92%

-----------------
<FN>
<F1>
  Under the rules of the Commission, a person is deemed to be the beneficial
owner of a security if such person has or shares the power to vote or direct
the voting of such security or the power to dispose or direct the disposition
of such security.  A person is also deemed to be a beneficial owner of any
securities of that person has the right to acquire beneficial ownership
within  60 days.  Accordingly, more than one person may be deemed to be a
beneficial  owner of the same securities.  Unless otherwise indicated by
footnote, the  named entities or individuals have sole voting and investment
power with  respect to the shares of common stock beneficially owned.

<F2>
  Includes 341,500 shares held by Theodora T. Robinson, spouse of Stephen M.
Robinson.  Also includes options to purchase 125,000 shares of common stock.

<F3>
  Includes 75,000 shares held by Donna M. Santoro, spouse of Harry J.
Santoro.  Also includes options to purchase 125,000 shares of common stock.
</FN>

                                   -20-
<PAGE>
ITEM 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

SVG Properties, L.P. entered into a management agreement with H. James
Santoro, Inc., effective August 1, 1992, whereby H. James Santoro, Inc.
agreed  to manage the Spring Village Apartment complex for a fee equal to 5%
of the gross rent of the complex, plus reimbursement of certain expenses.
Such agreement, as modified, is currently in effect, and may be terminated
when Mr. Santoro and H. James  Santoro, Inc. have no  remaining obligation or
liability related to the  agreement with RPI. H. James Santoro, Inc. received
in 2001 and 2000,  respectively, $48,000 and $48,000, pursuant to such
agreement.  Mr. Santoro  owns 100% of H. James Santoro, Inc.


The Company currently maintains its principal executive offices with Santoro
Realty, Inc. in approximately 500 square feet of leased office space at 215
West Main Street, Maple Shade, New Jersey, 08052.  Monthly rent under a month
to month lease is $800.  The building is owned by Harry J. Santoro, President
of  the  Company; however, the Company believes the terms of the lease are at
least as  favorable as terms available from non-affiliated third parties.

In June 2001, Harry J. Santoro purchased 150,000 shares of restricted common
stock of the Company at a purchase price of $37,500 in cash.

In June 2001, Theodora T. Robinson, spouse of Stephen M. Robinson, purchased
150,000 shares of restricted common stock of the Company at a purchase price
of $37,500 in cash.

                                   -21-

<PAGE>
Item 13.  Exhibits and Reports on Form 8-K
------------------------------------------

(a) Exhibits
    --------

Exhibit No.    Description of Document
-----------    -----------------------

3.01 *       Articles of Incorporation of Gavella Corp.
               dated June 21, 2000

3.02 *       By-laws of Gavella Corp.

10.01*       Agreement and Plan for Corporate Separation between
               Apta Holdings, Inc., Spring Village Holdings, Inc.
               and Registrant

10.02*       Provisional Workout Agreement

10.03*       Agreement with Resource Properties XXIII, Inc.

10.04*       Apartment Management Agreement

10.05*       Fourth Amended and Restated Partnership Agreement of
             S.V.G. Properties, L.P.

10.06*       First Amendment to the Fourth Amended and Restated Partnership
             Agreement of S.V.G. Properties, L.P.

10.07*       Second Amendment to the Fourth Amended and Restated Partnership
             Agreement of S.V.G. Properties, L.P.

10.08*       Third Amendment to the Fourth Amended and Restated Partnership
             Agreement of S.V.G. Properties, L.P.

21.1 *       List of Subsidiaries of Registrant

23.01*       Consent of Haefele, Flanagan & Co., P.C.


(b) Reports on Form 8-K
    -------------------

     None

---------

The exhibits designed above with an asterisk (*) have previously been filed
with the Commission and, pursuant to 17 C.F.R. Secs. 201.24 and 240.12b-32,
are incorporated by reference to the Registrant's Registration Statement on
Form 10-SB number 000-31143, effective September 24, 2000.


                                   -22-
<PAGE>
                                   SIGNATURES

Pursuant to the  requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934,  the  registrant  has duly  caused  this report to be
signed on its behalf by the undersigned, thereunto duly authorized.


                                            GAVELLA CORP.
                                            (Registrant)

Date: March 28, 2002

                                            /S/  Harry J. Santoro
                                        -----------------------------------
                                          Harry J. Santoro, President,
                                          Chief Executive Officer

Pursuant to the  Securities  Exchange  Act of 1934,  this report has been
signed below by the following persons on behalf of the registrant and in the
capacities and on the dates indicated.

                                            GAVELLA CORP.
                                            (Registrant)

Date: March 28, 2002

                                            /S/  Harry J. Santoro
                                       -------------------------------------
                                            Harry J. Santoro, Director

                                            /S/  Stephen M. Robinson
                                       -------------------------------------
                                            Stephen M. Robinson,  Director


                                   -23-