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                     SECURITIES AND EXCHANGE COMMISSION
                           WASHINGTON, D.C. 20549


                                 FORM 10-QSB


[X]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934

      For the quarterly period ended   June 30, 2001
                                       -------------

                                     OR

[ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
      EXCHANGE ACT OF 1934.

      For the transition period from _______________ to _______________


                       Commission file number  1-13588
                                               -------

                           THE WIDECOM GROUP INC.
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           (Exact Name of Registrant as specified in Its Charter)

        ONTARIO, CANADA                            98-0139939
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(State or Other Jurisdiction of       (I.R.S. Employer Identification No.)
 Incorporation or Organization)

37 GEORGE STREET NORTH, SUITE 103, BRAMPTON, ONTARIO, CANADA      L6X 1R5
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(Address of principal executive offices)                         (Zip Code)

Registrant's Telephone Number, Including Area Code (905) 712-0505
                                                   --------------


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             Former Name, Former Address and Former Fiscal Year,
                        If Changed Since Last Report.

      Indicate by check X whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the  Securities  Exchange
Act of 1934 during the preceding 12 months  (or for such shorter periods
that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
                            Yes   X    No
                                -----     -----

      The number of shares outstanding of registrant's common stock as of
September 17, 2001 was 2,633,585 shares.

<PAGE> 1 of 9


                           THE WIDECOM GROUP INC.
                                 FORM 10-QSB
                                    INDEX

                                                                   Page No.
                                                                   --------

Part I Financial Information

Item 1 - Financial Statements

         Consolidated Balance Sheets -
         June 30, 2001 and June 30, 2000                               3

         Consolidated Statements of Operations -
         Three months ended June 30, 2001
         and June 30, 2000                                             4

         Consolidated Statements of Cash Flows -
         Three months ended June 30, 2001
         and June 30, 2000                                             5


         Notes to Consolidated Financial Statements                  6-7

Item 2 - Management's Discussion and Analysis of
         Financial Condition and Results of Operations               7-8

Part II Other Information

         None.

Signatures                                                             9

<PAGE> 2 of 9


PART I FINANCIAL INFORMATION
The WideCom Group Inc.
Consolidated Balance Sheet
(in United States dollars)

<TABLE>
<CAPTION>
                                                              June 30,
                                                     --------------------------
                                                        2000             2001
-------------------------------------------------------------------------------


                                       <c>       <c>             <c>
Current Assets                            Notes
Cash and cash equivalents                               85,205           27,749
Accounts receivable                                    642,486          438,001
Inventory                                   3          898,377          708,399
Prepaid expenses                                        37,407           19,817
Advances to related parties                            239,723          295,658
Deferred financing costs                                30,506           14,811
                                                    ---------------------------

Total Current Assets                                 1,933,704        1,504,435

Capital Assets                              4        1,171,114          641,024

Purchased research and
 development technology                     5           41,409           14,811
Investment in affiliate                     6          255,066           84,650
Total Assets                                         3,401,293        2,244,920
-------------------------------------------------------------------------------

Liabilities & Stockholders' Equity

Current Liabilities
Bank indebtedness                                      198,961          168,494
Accounts payable & accrued liabilities               1,030,285          732,251
Loans from related parties                             401,651          658,481
Convertible debentures                      5          195,785          180,085
                                                    ---------------------------
Total Current Liabilities                            1,826,682        1,739,311
                                                    ---------------------------

Stockholders' Equity
Common shares
 5,000,000*  shares authorized of no par value
 2,443,730*  shares issued and outstanding on
             March 31, 2000
 2,633,585*  shares issued and outstanding on
             June 30, 2001                          14,703,589       14,711,179
Contributed surplus                                    159,825          159,825
Deficit                                            (13,288,802)     (14,365,395)
                                                    ---------------------------
                                                     1,574,612          505,609
                                                    ---------------------------
Total Liabilities & Stockholders' Equity             3,401,294        2,244,920
-------------------------------------------------------------------------------
</TABLE>

*  Adjusted for reverse split of Company's stock (1:4) on January 29, 1999.

The accompanying notes are an integral part of the consolidated financial
statements.

<PAGE> 3 of 9


The WideCom Group Inc.
Consolidated Statements of Operations
(in United States dollars)

<TABLE>
<CAPTION>
                                                   For the three months ended
                                                   --------------------------
                                                    June 30,       June 30,
                                                      2000           2001
                                                   (Unaudited)    (Unaudited)
-----------------------------------------------------------------------------


                                                <c>            <c>
Revenue

Product sales                                        510,994         85,752
Research and development grants                            -              -
Interest income                                        1,027             91
                                                   ------------------------

Total Revenue                                        512,021         85,843
                                                   ------------------------

Expenses
  Cost of product sales                              112,304         22,166
  Research and development                            25,910         11,792
  Selling, general & administrative                  345,866        100,532
  Interest and bank charges                           10,560          3,368
  Management fees & salaries                          47,689         39,500
  Amortization                                        59,574         23,627
  Financing fees                                       7,203              -
  Foreign exchange loss (gain)                       (23,462)        (2,358)
                                                   ------------------------

Total Expenses                                       585,644        198,627

Operating loss                                       (73,623)      (112,784)

Legal settlement costs                                     -              -
Equity in loss of affiliate                          (73,639)       (74,543)
                                                   ------------------------

Net loss for the period                             (147,262)      (187,327)
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Loss per common share, basic
 and diluted                                          (0.06)          (0.07)
---------------------------------------------------------------------------

Weighted average number of shares outstanding*    2,443,730       2,633,585
---------------------------------------------------------------------------
</TABLE>

*  Adjusted for reverse split of Company's stock (1:4) on January 29, 1999.

The accompanying notes are an integral part of the consolidated financial
statements.

<PAGE> 4 of 9


The WideCom Group Inc.
Consolidated Statements of Cash Flows
(in United States dollars)

<TABLE>
<CAPTION>
                                                      For the three months ended
                                                      --------------------------
                                                       June 30,       June 30,
                                                         2000           2001
                                                      (Unaudited)    (Unaudited)
--------------------------------------------------------------------------------


                                                    <c>            <c>
Cash provided by (used in)

Operating Activities
Loss for the year                                      (147,262)      (187,327)
-----------------
(Add (deduct) items not requiring a cash outlay
  Amortization                                           59,574         23,627
  Foreign exchange loss (gain)                          (23,462)        (2,358)
  Share issued to settle lawsuits and corporate
   indebtedness                                                              -
  Equity in loss of affiliate                            73,639         74,543

Net changes in non-cash
-----------------------
  Working capital balances related to operations:
    Decrease (increase) in accounts receivable          (70,333)        10,908
    Decrease in research and development grants
     receivable                                               -              -
    Decrease (increase) in inventory                     (7,962)        35,160
    Increase (decrease) in accounts payable and
     accrued liabilities                                240,905         (1,805)
    Increase (decrease) in prepaid expenses             (18,335)          (245)
                                                       -----------------------
                                                        106,764        (47,497)

Investing Activities

Disposal (purchase) of capital assets                       797              -
Advances to related parties                                              1,412
                                                       -----------------------
                                                            797          1,412
                                                       -----------------------

Financing Activities

Deferred financing costs incurred                                            -
Increase (decrease) in bank indebtedness                 23,286         (1,805)
Shares and warrants issued, net of issue costs                -              -
Loan from related parties                                27,022         12,996
Issuance of convertible debentures                            -              -
                                                       -----------------------
                                                         50,308         11,191
                                                       -----------------------
Effect of exchange rate change on cash                  (83,978)        (6,933)
                                                       -----------------------

Net increase (decrease) in cash during the period        73,891        (41,827)

Cash and cash equivalents, beginning of the period       11,314         69,576
                                                       -----------------------

Cash and cash equivalents, end of the period             85,205         27,749
</TABLE>

The accompanying notes are an integral part of the consolidated financial
statements.

<PAGE> 5 of 9


The WideCom Group Inc.
Notes to Consolidated Financial Statements (Unaudited)
(in United States dollars)
June 30, 2001
---------------------------------------------------------------------------

1.    Presentation of Interim Information
      In the opinion of Management, the accompanying unaudited financial
      statements include all normal adjustments necessary to present fairly
      the financial position at June 30, 2001, and the results of
      operations for the three months ended June 30, 2001 and 2000 and cash
      flows for the three months ended June 30, 2001. Interim results are
      not necessarily indicative of of results for full year.

      The condensed consolidated financial statements and notes are
      presented as permitted by Form 10QSB and do not contain certain
      information included in Widecom's audited consolidated financial
      statements and notes for the fiscal year ended March 31, 2001.

2.    Financial Statements
      The consolidated financial statements include the accounts of Widecom
      and its wholly owned subsidiary. All significant intercompany
      balances, transactions and stockholdings have been eliminated.

3.    Inventory
      Inventories are summarized as follows:

<TABLE>
<CAPTION>
                                             June 30,     June 30,
                                               2000         2001
                                             ---------------------

      
                                    <c>          <c>
      Raw material                           597,949      577,802
      Work-in-progress                         7,897        7,659
      Finished goods                         292,531      122,938
                                             --------------------
                                             898,377      708,399
                                             --------------------
</TABLE>

4.    Capital Assets
      Capital assets consist of:

<TABLE>
<CAPTION>
                                                        June 30, 2000               June 30, 2001
                                                  -------------------------   -------------------------
                                                               Accumulated                 Accumulated
                                                    Cost       Amortization     Cost       Amortization
                                                  -----------------------------------------------------

      
                                         <c>           <c>           <c>           <c>
      Machinery, plant & computer equipment       1,953,130     1,347,879     1,646,001     1,463,619
      Furniture and fixtures                        103,322        90,104        91,395        77,033
      Prototypes and jigs                           294,872       167,429       239,494       139,805
      Land                                           57,330             -        45,806             -
      Building under construction                   367,872             -       298,785             -
                                                  ---------------------------------------------------
                                                  2,776,526     1,605,412     2,321,481     1,680,457
                                                  ---------------------------------------------------
      Net book value                                            1,171,114                     641,024
                                                  ---------------------------------------------------
</TABLE>

5.    Convertible Debentures
      During 1999, the Company conducted a private placement of ten
      specific investment units, each comprising 10,000 common shares (see
      Note 10(b)(x)) and a three-year 12% convertible subordinated note in
      the amount of $20,000.  Interest payments are payable quarterly and
      conversion is available at an exercise price of $1.00 per share.
      One-half of the principal amount of the note is exercisable during
      the 30 day period commencing 180 days from the initial closing on
      February 19, 1999.  The remaining principal amount

<PAGE> 6 of 9


The WideCom Group Inc.
Notes to Consolidated Financial Statements
(in United States dollars)
June 30, 2001
---------------------------------------------------------------------------

5.    Convertible Debentures (cont'd)
      is convertible following 360 days after the initial closing.  During
      the fiscal year ended March 31, 2000, the Company issued the
      remaining one-half unit comprising of 5,000 common shares (see Note
      10(b)(x)) and a three-year 12% convertible subordinated note in the
      amount of $10,000.

      The Company is presently in default on the interest payments on the
      12% convertible debentures.  The consequences of this default has not
      been determined.

6.    Loans from Related Parties
      The loans from related parties are non-interest bearing, due on
      demand and were advanced to the Company in order to assist in certain
      working capital requirements.

7.    Contingent Liabilities

      (a)   The Company has been served with a claim, with respect to a
            breach of contract regarding the Company's rights under two
            specific joint venture and development agreements to use and
            distribute various iterations of software components allegedly
            the sole property of the claimant.  The action claims damages
            for breach of contract along with copyright and trademark
            infringement.  The claim seeks a total of $15.85 million in
            damages and is in progress in the Province of Ontario.
            Management considers that the prospects of a successful
            resolution are likely.

            On December 20, 1996, two individuals,  filed a lawsuit in the
            United Stated District Court for the District of Rhode Island,
            seeking 60,000 shares and 40,000 warrants. This action has
            been formally dismissed.  An additional three shareholders have
            also commenced related litigation, alleging purchases of the
            Company's securities from the previously noted two individuals,
            who are named as co-defendants.  The Company has filed and
            received default judgments on its cross-claims against the two
            individual co-defendants. As the value of the Company's common
            stock has decreased substantially in recent months, it may not
            be able to settle the outstanding  suits through issuance of
            stock.  Collectively almost $1 million is claimed by the 3
            shareholder suits.

            Several other claims against the Company are in various stages
            of litigation.  In management's opinion, these claims are not
            material and accordingly no provision has been made in the
            consolidated financial statements.

            Loss, if any, on the above claims will be recorded when
            settlement is probable and the amount of the settlement is
            estimable.

      (c)   The Company's wholly owned subsidiary, Indo WideCom
            International Ltd., in India, has not met export obligations
            for the fiscal year which may result in additional customs duty
            levied by the authorities in India.  As at year end, this
            amount was not determinable.

<PAGE> 7 of 9


Item 2.  Management's Discussion and Analysis of
         Financial Condition and Results of Operations.

      Since inception, we have generated limited revenues from operations
and have not yet achieved significant profitability. Our revenues are
primarily derived from product sales that are recognized for accounting
purposes when products are shipped.  We have limited revenue from
operations, significant losses and have a significant deficit.  Due to
limited cash resources, we have often relied on cash infusions from
management to meet ongoing obligations.  There is no certainly that such
access to funds will be available to us in the future.  In order to reduce
our losses, we have significantly reduced Selling, General and
Administrative costs.  We expect this to have a reduction on sales.

      While we received government grants in the past, we do not meet the
required pre-qualification for such grants subsequent to conducting its
public offering. In consideration of this fact, we shifted our research and
development to an affiliated joint venture based in Montreal, Canada.

      In February 2000, we established a majority-owned subsidiary,
Posternetwork.COM Inc., to engage in the business line of offering an
online printing service. Posternetwork is currently engaged in
organizational and financing activities.

Results of Operations
Quarter Ended June 30, 2001 Compared to Quarter Ended June 30, 2000

      Sales for the quarter ended June 30, 2001 were $85,752, a decrease of
$425,242 as compared to $510,994 for the quarter ended June 30, 2000.  Net
Revenues for the quarter ended June 30, 2001 were $63,677, a decrease of
$336,040 as compared to $399,717 for the quarter ended June 30, 2000. The
decline in revenue was attributed to a decrease in sales and promotional
efforts in order to conserve cash.

      Operating expenses for the quarter ended June 30, 2001 were $176,461
a decrease of $296,879, or 63%, as compared to $473,340 for the quarter
ended June 30, 2000.  Selling, general and administrative expenses for the
quarter ended June 30, 2001 were $100,532, decreased by $245,334, or 71%
versus the same period in the previous fiscal year. This reduction in
selling, general and administrative expenses is a result of our efforts to
preserve our cash resources.

      Our share of the loss incurred by the research and development
consortium (3294340 Canada Inc.) that had been formed on the second of
October 1996, for the quarter ended June 30, 2001, amounted to $74,543 as
compared to $73,639 for the quarter ended June 30, 2000.

Liquidity and Capital Resources

      Our primary cash requirements have been to fund research and
development activities, acquisition of equipment and inventories and to
meeting operations expenses incurred in connection with the
commercialization of our products. We meet our working capital requirements
principally through the issuance of debt and equity securities, government
sponsored research and development grants and reimbursement and cash flow
from operations.

      Our cash requirements in connection with manufacturing and marketing
will continue to be significant. We do not have any material commitments
for capital expenditures. We believe, based on our current plans and
assumptions relating to our operations, projected cash flow from operations
may not be sufficient to satisfy our contemplated cash requirements for the
foreseeable future. We have relied on investments from management to cover
our short falls in the last fiscal year, such investment may not be
available to us in the future.  In the event that our plans or assumptions
change, or prove to be incorrect, or if the projected cash flows otherwise
prove to be insufficient to fund operations (due to unanticipated expenses,
delays, problems or otherwise), we could be required to seek additional
financing sooner than currently anticipated. There can be no assurance that
this additional financing will be available to us when needed, on
commercially reasonable terms, or at all.

Nasdaq

      The Company's Common Stock was delisted from the Nasdaq Small Cap
Market effective the close of business April 10, 2001 for failure to meet
certain minimum net tangible asset requirements.  The stock continues to
trade on the OTC Bulletin Board.

<PAGE> 8 of 9


PART II:  OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS.
          -See Contingent Liabilities.

ITEM 2.   CHANGES IN SECURITIES.
          No material change.

ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
          None.

ITEM 5.   OTHER INFORMATION.
          None.

ITEM 6.   REPORTS ON FORM 8-K and EXHIBITS
          None

                                 SIGNATURES

Pursuant to the requirements 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.

                                       THE WIDECOM GROUP INC.


September 18, 2001                      /s/Suneet S. Tuli
------------------                      ----------------------
Date                                      Suneet S. Tuli,
                                          Executive Vice President


September 18, 2001                      /s/Raja S. Tuli
------------------                      ----------------------
Date                                      President, C.E.O


<PAGE> 9 of 9