SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB


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

     For  the  quarterly  period  ended  March  31,  2002

     [ ]  TRANSITIONAL  REPORT  UNDER  SECTION  13  OR  15(d) OF THE SECURITIES
          EXCHANGE  ACT  OF  1934  (No  Fee  Required)

                           Commission File No. 0-27210


                          Tech Electro Industries, Inc.
              ----------------------------------------------------
                 (Name of Small Business Issuer in its Charter)


                Texas                                   75-2408297
     -------------------------------              --------------------------
     (State or other jurisdiction of                 (I.R.S. Employer
      incorporation of organization)                Identification No.)

             275 N Franklin Turnpike Suite #230 Ramsey, NJ  07446
        ----------------------------------------------------------------
                     (Address of principal executive office)


                                 (201) 760-9900
                          ----------------------------
                           (Issuer's telephone number)

Check  whether  the issuer has (1) filed all  reports  required by Section 12 or
15(d) of the Exchange Act during the past 12 months, and 2) been subject to such
filing requirements for the past ninety (90) days. Yes [ X ] No [ ]

As of March 31, 2002, 8,403,390 shares of Common Stock were outstanding.

















                                        1

<PAGE>


THIS DOCUMENT IS PREPARED AND FILED UNDER THE REQUIREMENTS OF REGULATIONS S-B OF
THE SECURITIES AND EXCHANGE COMMISSION, EFFECTIVE JULY 31, 1992.


                                      INDEX

                                                                      Page
                                                                      ----
PART I - Financial Information

Item 1.  Financial Statements

Consolidated Balance Sheets at March 31, 2002 (unaudited)
and December 31, 2001. . . . . . . . . . . . . . . . . . . . . . . .   3

Consolidated Statements of Operations for the three
months ended March 31, 2002 and 2001 (unaudited) . . . . . . . . . .   5

Consolidated Statements of Cash Flows for the three
months ended March 31, 2002 and 2001 (unaudited) . . . . . . . . . .   7

Notes to Consolidated Financial Statements . . . . . . . . . . . . .   9

Item 2.  Management's Discussion and Analysis or Plan of Operation..  11

PART II - Other Information. . . . . . . . . . . . . . . . . . . . .  15

Item 1.  Legal Proceedings.. . . . . . . . . . . . . . . . . . . . .  15

Item 2.  Changes in Securities.. . . . . . . . . . . . . . . . . . .  15

Item 3.  Defaults Upon Senior Securities.. . . . . . . . . . . . . .  15

Item 4.  Submission of Matters to a Vote of Securities Holders.. . .  15

Item 5.  Other Information.. . . . . . . . . . . . . . . . . . . . .  15

Item 6.  Exhibits and Reports on Form 8-K. . . . . . . . . . . . . .  15

Signature. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  16















                                        2
<PAGE>
PART  I  -  FINANCIAL  INFORMATION
----------------------------------
Item  1.  Financial  Statements

                 TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS


                                     ASSETS
                                                March 31,     December 31,
                                                  2002           2001
                                              (Unaudited)
                                              ------------   -------------
CURRENT ASSETS
  Cash and cash equivalents . . . . . . . .   $    831,429   $   1,355,153
  Certificate of deposit - restricted . . .        161,422         160,563
  Accounts and notes receivable
    trade, net of allowance for doubtful
    accounts of $139,614 (unaudited) and
    $133,111  . . . . . . . . . . . . . . .      3,510,290       3,426,120
    Other . . . . . . . . . . . . . . . . .         26,154          30,088
  Inventories, net of allowance for
    obsolescence of $178,741 (unaudited)
    and $175,741. . . . . . . . . . . . . .      2,992,071       3,433,871
  Prepaid expenses and other current assets      1,108,980         905,017
                                              ------------   -------------

      Total current assets. . . . . . . . .      8,630,346       9,310,812
                                              ------------   -------------
PROPERTY AND EQUIPMENT
  Facsimile and business center equipment        3,121,557       3,423,261
  Machinery and equipment . . . . . . . . .        581,178         561,152
  Furniture and fixtures  . . . . . . . . .        283,517         246,733
  Computer equipment. . . . . . . . . . . .        212,210         215,208
  Leasehold improvements. . . . . . . . . .        187,776         181,276
  Vehicles. . . . . . . . . . . . . . . . .         46,262          46,262
                                              ------------   -------------
                                                 4,432,500       4,673,892
  Less accumulated depreciation and
    amortization. . . . . . . . . . . . . .     (1,621,146)     (1,806,558)
                                              ------------   -------------
      Net property and equipment. . . . . .      2,811,354       2,867,334
                                              ------------   -------------

OTHER ASSETS. . . . . . . . . . . . . . . .         11,651           4,926
                                              ------------   -------------
TOTAL ASSETS. . . . . . . . . . . . . . . .   $ 11,453,351   $  12,183,072
                                              ============   =============






            The accompanying footnotes are an integral part of these
                       consolidated financial statements.

                                        3

<PAGE>
                 TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
                     CONSOLIDATED BALANCE SHEETS - Continued

                      LIABILITIES AND STOCKHOLDERS' EQUITY

                                               March 31,     December 31,
                                                 2002            2001
                                              (Unaudited)
                                            -------------   -------------
CURRENT LIABILITIES
  Line of credit . . . . . . . . . . . .    $   1,648,683   $   2,107,362
  Current portion of long-term debt  . .        2,823,584         643,856
  Accounts payable . . . . . . . . . . .        1,962,023       2,447,573
  Accrued liabilities  . . . . . . . . .          574,412         440,984
  Other current liabilities  . . . . . .            9,200          12,244
                                            -------------   -------------
      Total current liabilities. . . . .        7,017,902       5,652,019
                                            -------------   -------------
LONG-TERM DEBT, less current portion . .            8,660       2,215,121
                                            -------------   -------------
      Total liabilities. . . . . . . . .        7,026,562       7,867,140

STOCKHOLDERS' EQUITY
  Preferred stock - $1.00 par value;
    1,000,000 shares authorized; 115,088
    Class A issued and outstanding;
    liquidation preference of $633,087 .          115,088         115,088
  Common stock - $0.01 par value;
    50,000,000 shares authorized; 8,403,390
    (unaudited) shares issued and
    outstanding                                    84,034          84,034
  Additional paid-in capital . . . . . .       14,485,216      14,496,437
  Accumulated deficit  . . . . . . . . .      (10,257,549)    (10,379,627)
                                            -------------   -------------
      Total stockholders' equity . . . .        4,426,789       4,315,932
                                            -------------   -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $  11,453,351   $  12,183,072
                                            =============   =============















            The accompanying footnotes are an integral part of these
                       consolidated financial statements.


                                        4

<PAGE>
                 TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
               For the Three Months Ended March 31, 2002 and 2001
                                   (Unaudited)

                                                         2002          2001
                                                    -------------  -----------
REVENUES
  Sales  . . . . . . . . . . . . . . . . . . . .    $  6,116,697   $ 5,474,789
  Service revenue. . . . . . . . . . . . . . . .       1,020,041     1,394,618
                                                    ------------  ------------
                                                       7,136,738     6,869,407
COST OF REVENUES
  Cost of goods sold . . . . . . . . . . . . . .       4,803,030     4,430,733
  Direct servicing costs . . . . . . . . . . . .         183,782       366,683
                                                    ------------  ------------
                                                       4,986,812     4,797,416
                                                    ------------  ------------

GROSS PROFIT . . . . . . . . . . . . . . . . . .       2,149,926     2,071,991

OPERATING EXPENSES
  Selling, general and administrative. . . . . .       1,594,482     1,660,819
  Depreciation and amortization of property
    and equipment. . . . . . . . . . . . . . . .         124,075       212,885
                                                     -----------  ------------
                                                       1,718,557     1,873,704
                                                     -----------  ------------
INCOME FROM OPERATIONS . . . . . . . . . . . . .         431,369       198,287

OTHER INCOME (EXPENSES)
  Interest income  . . . . . . . . . . . . . . .             864         3,650
  Interest expense . . . . . . . . . . . . . . .        (184,863)     (249,253)
  Amortization of deferred financing costs . . .               -       (73,756)
  Other, net . . . . . . . . . . . . . . . . . .        (125,292)       (1,873)
                                                     -----------  ------------
                                                        (309,291)     (321,232)
                                                     -----------  ------------
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES          122,078      (122,945)

PROVISION FOR INCOME TAXES . . . . . . . . . . .               -             -
                                                     -----------  ------------
NET INCOME (LOSS). . . . . . . . . . . . . . . .     $   122,078  $   (122,945)
                                                     ===========  ============








            The accompanying footnotes are an integral part of these
                       consolidated financial statements.

                                  - Continued -

                                        5

<PAGE>
                 TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
               CONSOLIDATED STATEMENTS OF OPERATIONS - Continued
               For the Three Months Ended March 31, 2002 and 2001
                                   (Unaudited)


                                                         2002          2001
                                                    ------------   ------------

Net income (loss) attributable to common
  stockholders . . . . . . . . . . . . . . . . . .  $    110,857   $   (132,351)
                                                    ============   ============

Basic and diluted net income (loss) per share
  attributable to common shareholders. . . . . . .  $       0.01   $      (0.02)
                                                    ============   ============

Number of weighted-average shares of common
  stock outstanding (basic and diluted). . . . . .     8,403,390      8,210,320
                                                    ============   ============

































            The accompanying footnotes are an integral part of these
                       consolidated financial statements.


                                        6

<PAGE>
                 TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
               For The Three Months Ended March 31, 2002 and 2001
                                   (Unaudited)


                                                         2002            2001
CASH FLOWS FROM OPERATING ACTIVITIES                -------------   -----------
Net income (loss). . . . . . . . . . . . . . . . .  $     122,078   $  (122,945)
Adjustments  to  reconcile  net  income
   (loss) to net cash  provided by
   operating activities:
    Depreciation of property and equipment . . . .        124,075       212,885
    Provision for bad debts. . . . . . . . . . . .          6,503         6,000
    Provision for obsolete inventory . . . . . . .          3,000         3,000
    Amortization of debt discount  . . . . . . . .              -        16,311
    Amortization of deferred financing costs . . .              -        73,756
    Loss on disposal of equipment. . . . . . . . .         65,359             -
    Change in operating assets and liabilities
      Accounts receivable - trade. . . . . . . . .        (90,673)      807,937
      Accounts receivable - other. . . . . . . . .          3,934         6,820
      Inventories. . . . . . . . . . . . . . . . .        438,800       545,885
      Prepaid expenses and other current assets. .       (203,963)       36,991
      Other assets . . . . . . . . . . . . . . . .         (6,725)        5,543
      Accounts payable . . . . . . . . . . . . . .       (485,550)   (1,102,571)
      Accrued liabilities. . . . . . . . . . . . .        130,384      (267,543)
                                                    -------------  ------------
Net cash provided by operating activities. . . . .        107,222       222,069
                                                    -------------  ------------
CASH FLOWS FROM INVESTING ACTIVITIES
  Purchases of property and equipment. . . . . . .       (133,454)      (11,276)
  Payments received on notes receivable. . . . . .              -           331
  Purchase of certificate of deposit . . . . . . .           (859)       (2,113)
                                                    -------------  ------------
Net cash used in investing activities  . . . . . .       (134,313)      (13,058)
                                                    -------------  ------------
CASH FLOWS FROM FINANCING ACTIVITIES
  Net activity on line of credit . . . . . . . . .       (458,679)     (229,243)
  Repayment of long-term debt. . . . . . . . . . .        (26,733)      (95,207)
  Payment of preferred stock dividends . . . . . .        (11,221)            -
                                                    -------------  ------------
Net cash used in financing activities. . . . . . .       (496,633)     (324,450)
                                                    -------------  ------------
NET DECREASE IN CASH AND CASH EQUIVALENTS. . . . .       (523,724)     (115,439)









            The accompanying footnotes are an integral part of these
                       consolidated financial statements.


                                        7

<PAGE>
                 TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF CASH FLOWS - Continued
               For The Three Months Ended March 31, 2002 and 2001
                                   (Unaudited)


                                                      2002          2001
                                                 ------------   ------------
Cash and cash equivalents at beginning
  of period. . . . . . . . . . . . . . . . .        1,355,153        839,060
                                                 ------------   ------------
Cash and cash equivalents at end of period .     $    831,429   $    723,621
                                                 ============   ============
SUPPLEMENTAL SCHEDULE OF NONCASH
  INVESTING AND FINANCING ACTIVITIES

  Dividends paid through issuance
    of common stock  . . . . . . . . . . . .     $          -   $      9,406
                                                 ============   ============


































            The accompanying footnotes are an integral part of these
                       consolidated financial statements.


                                        8

<PAGE>
                 TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE A - BASIS OF PRESENTATION

The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting  principles for interim financial information
and in  accordance  with the  instructions  per Item  310(b) of  Regulation  SB.
Accordingly,  they do not include all of the information and footnotes  required
by generally accepted accounting principles for complete financial statements.

In the opinion of management,  all adjustments  (consisting of normal  recurring
adjustments) considered necessary for a fair presentation have been included for
the three month  period  ended March 31,  2002.  The results for the three month
period ended March 31, 2002 are not  necessarily  indicative of the results that
may be expected for the year ended December 31, 2002.

NOTE B - ORGANIZATION

Tech Electro Industries,  Inc. ("TEI") was formed on January 10, 1992 as a Texas
corporation.  TEI's subsidiary,  Computer Components  Corporation ("CCC"), doing
business as Universal Battery Corporation  ("UBC"),  stocks and sells electronic
components  and  batteries.   Within  the  battery  sales  activity,   there  is
significant  value added to the  batteries  in the  assembly of  batteries  into
"packs". UBC's battery and electronic components sales are generated by in-house
sales staff and sales representatives to customers throughout the United States.
TEI's subsidiary,  AlphaNet Hospitality Systems, Inc. ("AHS"),  provides in-room
facsimile  and business  center  services to the hotel  industry.  AHS generates
revenues  from its  product  line which  includes  InnFax(R),  The Office (TM) ,
InnPhone and  InnPhonePlus.  InnFax(R) is a patented in-room  facsimile  service
which offers guests a personal  facsimile  number and e-mail address to send and
receive  correspondence during the duration of their stay, as well as facsimile,
printing and copying  capabilities.  The Office (TM), is a full service,  credit
card  activated  business  center  for  business  travelers  staying  at hotels.
InnPhone and  InnPhonePlus  are digital and analog phones  distributed by AHS to
the hospitality industry.

NOTE C - NET INCOME (LOSS) PER SHARE

Basic net income  (loss) per share is computed by  dividing  net income  (loss),
decreased or increased by the  preferred  stock  dividends of $11,221 and $9,406
for the three month periods ending March 31, 2002 and 2001,  respectively by the
weighted average number of common shares outstanding for the period. Diluted net
income  (loss)  per share is  computed  by  dividing  net  income  (loss) by the
weighted   average  number  of  common  shares  and  common  stock   equivalents
outstanding for the period.  TEI's common stock  equivalents are not included in
the diluted loss per share for the three month  periods  ended March 31, 2001 as
they are  antidilutive.  At March 31, 2002,  all  outstanding  stock options and
warrants  have  exercise  prices  greater  than the  current  fair  value of the
underlying  stock  and  therefore,  have  no  effect  on the  income  per  share
computation.






                                        9

<PAGE>
NOTE D - LINE OF CREDIT

On March 27, 2002,  UBC obtained a  $12,000,000  line of credit with a financing
company,  payable on demand,  with interest payable monthly at prime plus 1.25%,
maturing  March  2005.  The line of credit is  secured by  accounts  receivable,
inventories  and  equipment  of UBC.  The  line's  availability  is  based  on a
borrowing  formula which allows for  borrowings  equal to 85% of UBC's  eligible
accounts  receivable  and percentage of eligible  inventory.  On March 31, 2002,
$1,648,683  of the line of  credit  was  outstanding,  while  $885,255  remained
available for borrowings under the line of credit.

NOTE E - NOTES PAYABLE

AHS has two notes payable to related party financing companies.  One note in the
original principal amount of $1,525,000 is payable to Appel Investments, Inc. of
which  Kim  Yeow  Tan,  William  Tan's  brother,  is an  officer,  director  and
shareholder.  As of March 31,  2002,  AHS owes  $1,343,800  in principal on this
note. The second note in the original  principal amount of $1,000,000 is payable
to AHS Funding LLC of which  Jenny  Jechart,  a  shareholder,  is the  principal
shareholder.  As of March 31, 2002, AHS owes $861,400 in principal on this note.
These notes, which have an interest rate of 20.5%, originally matured on October
21, 2001 and were extended to March 27, 2003. These notes are secured by a first
lien on all AHS assets and a second lien on all AHS stock owned by TEI.

On March  28,  2002,  Caspic  International,  Inc.,  a related  party  financing
company,  extended the maturity  date of a TEI $500,000 note payable to June 10,
2002.

NOTE F - SEGMENTS

The battery and electronic sales segment represents the operations of UBC, which
includes  the  stocking  and sales of battery  and  electronic  components.  The
hospitality  service  operations of AHS provides  private in-room  facsimile and
office  business center for business  travelers.  These segments were identified
based on the different nature of the services,  location,  and, in general,  the
type of customers for those services.

A summary of the segment financial  information  reported to the chief operating
decision maker is as follows:
<TABLE>
<S>                                  <C>              <C>           <C>         <C>
                                     -------------------------------------------------------
                                                Three Months Ended March 31, 2002
                                     -------------------------------------------------------
                                                       Battery and
                                      Facsimile &      Electronic
                                     Business Center     Sales      Adjustment  Consolidated
                                     ---------------  ------------  ----------  ------------
Revenue                              $ 1,018,696      $ 6,116,697   $   1,345   $ 7,136,738
Depreciation and amortization             97,462           24,972       1,641       124,075
Segment profit (loss)                    (36,623)         167,573      (8,872)      122,078
Segment assets                         3,784,841        7,553,063     115,447    11,453,351
Capital expenditures by segment           68,875           64,579           -       133,454
</TABLE>





                                       10

<PAGE>
<TABLE>
<S>                                  <C>              <C>           <C>         <C>
                                     -------------------------------------------------------
                                                Three Months Ended March 31, 2001
                                     -------------------------------------------------------
                                                      Battery and
                                       Facsimile &     Electronic
                                     Business Center     Sales      Adjustment  Consolidated
                                     ---------------  ------------  ----------  ------------

Revenue                              $ 1,394,618      $ 5,474,789   $       -   $ 6,869,407
Depreciation and amortization            188,445           23,168       1,272       212,885
Segment profit (loss)                   (350,994)         210,111      17,938      (122,945)
Segment assets (as restated)           4,752,497        6,854,417      19,017    11,625,931
Capital expenditures by segment            7,817            3,459           -        11,276
</TABLE>

The adjustments  represent  depreciation and  amortization  related to corporate
assets,  corporate  expenses,  and corporate  capital  expenditures to reconcile
segment balances to consolidated balances.




ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

The following  discussion and analysis should be read in conjunction  with TEI's
Consolidated  Financial  Statements and notes thereto included elsewhere in this
Form  10-QSB.  Except  for the  historical  information  contained  herein,  the
discussion in this Form 10-QSB contains certain forward looking  statements that
involve risks and uncertainties,  such as statements of TEI's plans, objectives,
expectations and intentions.  The cautionary statements made in this Form 10-QSB
should be read as being  applicable  to all related  forward-looking  statements
wherever  they appear in this Form 10-QSB.  These  statements  include,  without
limitation,  statements  concerning the potential  operations and results of the
Company described below. TEI's actual results could differ materially from these
discussed  here.  Factors  that could cause or  contribute  to such  differences
include, without limitation,  those factors discussed herein and in TEI's Annual
Report on Form 10-KSB for the year ended December 31, 2001.


BACKGROUND AND RECENT DEVELOPMENTS

On March 7, 2002, UBC signed an agreement with Brink's Home Security  Inc.,  the
security division of the Pittston Brinks Group, to procure and assemble security
components for both  residential  and commercial  alarm systems.  This agreement
became  effective  May 1,  2002 and will  continue  for a two year  period.  The
Company  believes that this agreement will provide  significant  revenues in the
future.

On March 27, 2002, UBC entered into a $12,000,000  revolving line of credit with
General  Electric Capital  Corporation,  payable on demand with interest payable
monthly at prime plus  1.25%,  maturing  March 27,  2005.  The line of credit is
secured by the accounts receivable, inventories and equipment of UBC. The line's
availability is based on a borrowing  formula which allows for borrowings  equal
to 85% of UBC's eligible  accounts  receivable  plus the lesser of $3,000,000 or
85% of the net orderly  liquidation value of UBC's eligible inventory and 55% of
the lower of cost or market of UBC's eligible inventory.  This line of credit is
guaranteed by TEI.

                                       11
<PAGE>
On March 28, 2002 the maturity date of TEI's  $500,000 note payable to a related
party was  extended  to June 10,  2002.  Additionally,  on March 28,  2002,  the
maturity dates on AHS notes payable to related parties totaling  $2,205,200 were
extended to March 27, 2003.


RESULTS OF OPERATIONS

Currently,  Tech Electro  Industries,  Inc.'s  ("TEI")  operations are conducted
through  its two  wholly-owned  subsidiaries,  Computer  Components  Corporation
("CCC"),  doing business as Universal Battery Corporation  ("UBC"), and AlphaNet
Hospitality Systems, Inc. ("AHS").

REVENUES

For the three month period ended March 31, 2002, TEI had  consolidated  revenues
of  $7,136,738  compared to  $6,869,407  for the similar  period ended March 31,
2001, an increase of $267,331.

UBC and AHS had revenues of $6,116,697 and $1,018,696 for the three month period
ended March 31,  2002,  respectively,  compared to  revenues of  $5,474,789  and
$1,394,618 for the similar period in 2001,  respectively.  The $641,908 increase
in UBC's revenues is largely attributable to the increase in the sale of battery
and  battery  related   products  to  the  primary  markets   serviced  by  UBC.
Specifically,  direct  shipping sales  accounted for  approximately  $260,000 or
40.5%  of the  increase.  Batteries  sold to the  medical  industry  represented
$227,638 or 35.5% of UBC  increased  revenues.  $154,540 or 24.1% related to new
business  growth in both  industrial and consumer  batteries.  AHS's decrease in
revenues of $375,922 is attributable to the continued decline in facsimile usage
by hotel guests as well as the declining installation base of InnFax machines in
North  America.  Revenues  generated from AHS's The Office product for the three
months ended March 31, 2001  increased  to $186,692  compared to $97,715 for the
same period in 2001. However,  sales of the InnPhone product decreased to $8,339
compared to $111,633 for the same period in 2001.


COST OF REVENUES

For the three month  period  ended March 31, 2002,  TEI's  consolidated  cost of
revenues increased to $4,986,812  compared to cost of revenues of $4,797,416 for
the similar period in 2001, an increase of $189,396.

UBC's and AHS's cost of revenues  totaled  $4,803,030 and $183,782 for the three
month period  ended March 31, 2002,  respectively,  compared to  $4,430,733  and
$366,683 during the similar period in 2001, respectively.  Increased revenues at
UBC during the three month period  ended March 31, 2002  compared to the similar
period in 2001,  resulted in an increase in the related cost of revenues  during
the three month period ended March 31, 2002,  compared to the similar  period in
2001.  Cost of revenues as a percentage  of revenues for UBC  decreased to 78.5%
compared to 80.9% for the similar period in 2001.  This decrease is attributable
to  increasing  margin  sales and  purchasing  product at lower  prices.  Direct
services  costs as a percentage  of service  revenues for AHS decreased to 18.0%
compared to 26.3% for the three  month  period  ending  March 31, 2002 and 2001,
respectively.  The  decrease  is  largely  attributable  to the fewer  number of



                                       12

<PAGE>
installed facsimile  machines,  a decrease in the residual value payments at the
end of a four-year facsimile machine lease agreement and a decrease in recurring
facsimile services.

OPERATING EXPENSES

For the three month period ended March 31, 2002,  TEI's  consolidated  operating
expenses,  consisting of selling,  general and administrative,  depreciation and
amortization  expenses  decreased to $1,718,557  compared to $1,873,704  for the
similar period in 2001, a decrease of $155,147.

UBC's,  AHS's, and TEI's selling,  general and  administrative  expenses totaled
$979,433,  $511,506 and $103,543,  respectively for the three month period ended
March 31,  2002,  compared to  $671,691,  $848,571  and $140,557 for the similar
period  in 2001,  respectively.  The  increase  in UBC's  selling,  general  and
administrative  expenses  in 2002 is due to  increases  in  advertising,  travel
costs,  bank  charges  and wages.  The  decrease in AHS's  selling,  general and
administrative  expenses is largely  attributable to the  restructuring  of AHS,
which lowered advertising and marketing costs, reduced personnel,  benefit costs
and incentive  programs.  TEI's  selling,  general and  administrative  expenses
decreased  due to lower legal and  accounting  fees for the three  month  period
ending March 31, 2002 compared to the same period in 2001.

For the three month period ended March 31, 2002, TEI's consolidated depreciation
expense was  $124,075  compared to $212,885  for the similar  period in 2001,  a
decrease  of  $88,810.  The  decrease  is  largely  due to a portion  of the AHS
facsimile  equipment  in hotels  becoming  fully  depreciated  and  writing  off
obsolete equipment.

INTEREST EXPENSE

For the three month period ended March 31, 2002,  TEI, on a consolidated  basis,
incurred  $184,863 in  interest  expense  compared  to $249,253  for the similar
period in 2001,  a decrease  of  $64,390.  This  decrease is due to the fact the
interest rate UBC pays has decreased from the same period in 2001.

LIQUIDITY

TEI had  cash and cash  equivalents  on a  consolidated  basis of  $831,429  and
$723,621 at March 31, 2002 and 2001, respectively.

Net cash  provided by  operations  was $107,222 for the three month period ended
March 31, 2002  compared to $222,069  for the similar  period in 2001.  The cash
provided by operating  activities in 2002 was primarily related to a decrease in
inventory  of $438,800  off set by a decrease  in  accounts  payable and accrued
liabilities of $355,166.  The cash provided during 2001 related to a decrease in
accounts  receivable of $807,937 and a decrease in inventory of $545,885  offset
by a decrease in accounts payable and accrued liabilities of $1,370,114.

Net cash used in investing activities for the three month period ended March 31,
2002,  was  $134,313  compared to $13,058 for the  similar  period in 2001.  The
majority  of the  increase  was  caused  by the  purchase  of new  property  and
equipment in 2002.

Net cash used in financing activities for the three month period ended March 31,
2002 was $496,633  compared to $324,450 for the similar  period in 2001. The net

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<PAGE>
cash used by  financing  activities  for the three  months  ended March 31, 2001
comprised  of payments on the UBC line of credit,  long term debt and payment of
preferred stock dividends. The net cash provided by financing activities for the
three months ended March 31, 2001 was activity on the line of credit and payment
of long term debt.

UBC has a  $12,000,000  line of credit  with a  financing  company,  payable  on
demand, with interest payable monthly at prime plus 1.25%,  maturing March 2005.
The line of credit is secured by accounts receivable,  inventories and equipment
of UBC. The line's availability is based on a borrowing formula which allows for
borrowings equal to 85% of UBC's eligible accounts  receivable and percentage of
eligible  inventory.  On March 31,  2002,  $1,648,683  of the line of credit was
outstanding,  while $885,255 remained available for borrowings under the line of
credit.

As of March 31, 2001, AHS has notes payable to financing companies with balances
of  $2,205,200.  One note in the  original  principal  amount of  $1,525,000  is
payable to Appel Investments, Inc. of which Kim Yeow Tan, William Tan's brother,
is an  officer,  director  and  shareholder.  As of  March  31,  2002,  AHS owes
$1,343,800 in principal on this note.  The other note in the original  principal
amount of  $1,000,000  is payable to AHS Funding LLC of which Jenny  Jechart,  a
shareholder,  is the  principal  shareholder.  As of March  31,  2002,  AHS owes
$861,400 in principal on this note. These notes,  which have an interest rate of
20.5%,  originally  matured on October 21,  2001 and were  extended to March 27,
2003.  These  notes are  secured  by a first lien on all AHS assets and a second
lien on all AHS stock owned by TEI.  As  provided  for in the UBC line of credit
agreement  discussed  in  the  preceding  paragraph,   UBC  may,  under  certain
conditions,  borrow under the line to upstream funds to its parent,  TEI, to pay
this  indebtedness of AHS.  Assuming  borrowing  availability  and certain fixed
charge  coverage  ratio tests are met, UBC may borrow for this purpose up to 50%
of its net income for (i) calendar year 2001 and (ii) quarterly thereafter until
such AHS indebtedness is paid. The loan agreement between AHS and said financing
companies has been amended to extend the maturity date of the notes to March 27,
2003 in  consideration  of TEI's  agreement  to cause UBC to upstream  available
funds from the line of credit to pay this AHS indebtedness.

TEI currently  has a $500,000  note at a 12% per annum  interest rate payable on
June 10, 2002 to Caspic International,  Inc. of which William Tan is an officer,
director and shareholder. As of March 31, 2002, TEI owes $500,000 in principal.

TEI is seeking  alternative  sources of financing  to repay the said Appel,  AHS
Funding and Caspic  notes.  TEI has  attempted to obtain loans from  traditional
lenders, but to date, TEI has been unable to secure loans with acceptable terms.
To date, TEI has been unsuccessful in securing any alternative financing.

TEI believes that cash provided by its operations  and cash available  under the
UBC line of credit will be  sufficient to meets its  operational  needs over the
next year.  However,  it will not be  sufficient  to retire the said Appel,  AHS
Funding and Caspic indebtedness.

INFLATION

TEI has not been materially effected by inflation. While TEI does not anticipate
inflation  affecting  TEI's  operations,  increases in labor and supplies  could
impact TEI's ability to compete.


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<PAGE>
INTERNATIONAL CURRENCY FLUCTUATION

Since the  majority  of goods  that UBC  purchases  are from  Asia,  it has been
subject, like its competitors, to international currency fluctuation since UBC's
inception.  The  management  of UBC does not  believe  that the  fluctuation  in
currency presents a serious threat to its operations.







PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

None.

Item 2. Changes in Securities.

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Submission of Matters to a Vote of Securities Holders.

None.

Item 5. Other Information.

None.

Item 6. Exhibits and Reports on Form 8-K.

None.



















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<PAGE>
                                    Signature
                                    ---------

     In accordance  with the  requirements  of the Exchange Act, the  registrant
caused this Amendment  Number 2 to this report to be signed on its behalf by the
undersigned, thereunto duly authorized.


                                       Tech Electro Industries, Inc.
                                       -----------------------------


Date: May 15, 2002                     /s/  Julie Sansom-Reese
                                       -----------------------------
                                       Julie Sansom-Reese
                                       Chief Financial Officer









































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