SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

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

                      For the quarter ended March 31, 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: 2-99080

                       NATIONAL DIVERSIFIED SERVICES, INC.
            ---------------------------------------------------------
             (Exact name of Registrant as specified in its charter)

          Delaware                                         11-2820379
---------------------------                       ---------------------------
(State or other jurisdiction                            (I.R.S. Employer
of incorporation or organization)                      Identification No.)

                             c/o Lester Morse P.C.
                        111 Great Neck Road, Suite #420
                           Great Neck, New York 11021
                ----------------------------------- -----------
              (Address of principal executive offices) (Zip Code)

                         Registrant's telephone number,
                      including area code: (516) 487-1419
                                 --------------

                                 Not Applicable

         (Former name, former address and former fiscal year if changed
                               since last report)


Indicate by check mark 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 period 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 ___.
                                                     ---

6,548,870 Common Shares, $.001 par value were issued and outstanding at March
31, 2001.
<PAGE>

                       NATIONAL DIVERSIFIED SERVICES, INC.


                                      INDEX


<TABLE>
<CAPTION>
                                                                                                 Page Number

PART I.  FINANCIAL INFORMATION

         Item 1.  Financial Statements

<S>                                                                                                               <C>
                           Consolidated Balance Sheets                                                            3
                             March 31, 2001 (Unaudited) and
                             December 31, 2000

                           Consolidated Statements of Operations                                                  4
                             Three Months ended March 31,
                             2001 and March 31, 2000 (Unaudited)

                           Consolidated Statements of Cash Flows                                                  5
                             Three Months Ended March 31, 2001 and
                              March 31, 2000 (Unaudited)

                           Notes to Financial Statements (Unaudited)                                              6

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

PART II. OTHER INFORMATION                                                                                        8


SIGNATURES                                                                                                        9


</TABLE>
<PAGE>
              NATIONAL DIVERSIFIED SERVICES, INC. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS

                                     ASSETS
<TABLE>
<CAPTION>

                                                                            MARCH 31,        DECEMBER 31,
                                                                              2001                   2000
                                                                     ---------------------   -------------------
                                                                           (Unaudited)             (Audited)

CURRENT ASSETS:
<S>                                                                        <C>                   <C>
   Cash and cash equivalents                                               $   247,990           $   250,618
   Interest receivable                                                           2,397                 1,631
   Other current assets                                                          1,656                 1,656
                                                                           -----------           -----------

                  Total current assets                                         252,043               253,905
                                                                           -----------           -----------

                  TOTAL                                                    $   252,043           $   253,905
                                                                           ===========           ===========


                                   LIABILITIES

CURRENT LIABILITIES:
   Accounts payable and accrued expenses                                   $    16,021           $    15,187
                                                                           -----------           -----------

                  Total current liabilities                                     16,021                15,187

ACCRUED SALARIES - officer                                                      58,750                58,750
                                                                           -----------           -----------

                  Total liabilities                                             74,771                73,937
                                                                           -----------           -----------


                              STOCKHOLDERS' EQUITY

Common stock, $.001 par value; authorized 30,000,000
   shares, issued 6,553,870 shares                                               6,554                 6,554
Additional paid-in capital                                                     705,755               705,755
                                                                           -----------           -----------
                  Total                                                        712,309               712,309

Accumulated deficit                                                           (535,032)             (532,336)
                                                                           -----------           -----------
                                                                               177,277               179,973
Less:  5,000 shares of treasury stock, at cost                                       5                     5
                                                                           -----------           -----------

                  Total stockholders' equity                                   177,272               179,968
                                                                           -----------           -----------

                  TOTAL                                                    $   252,043           $   253,905
                                                                           ===========           ===========

</TABLE>

           See accompanying notes to consolidated financial statements
<PAGE>
              NATIONAL DIVERSIFIED SERVICES, INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

                   THREE MONTHS ENDED MARCH 31, 2001 AND 2000

<TABLE>
<CAPTION>
                                                                                          2001           2000
                                                                                      -----------    -----------

<S>                                                                                    <C>             <C>
REVENUES - interest                                                                    $   3,544       $  3,696


GENERAL AND ADMINISTRATIVE
   EXPENSES                                                                                6,240          7,000
                                                                                       ---------       --------


NET LOSS                                                                               $  (2,696)      $ (3,304)
                                                                                       =========       ========


NET LOSS PER SHARE, BASED
   ON THE WEIGHTED AVERAGE
   SHARES OUTSTANDING                                                                  $    -   *      $   -   *
                                                                                       =========       ========


NUMBER OF SHARES USED TO
   COMPUTE LOSS PER SHARE                                                              6,548,870       6,548,870
                                                                                       =========       =========

</TABLE>


*Less than $.01 per share

           See accompanying notes to consolidated financial statements
<PAGE>
              NATIONAL DIVERSIFIED SERVICES, INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)


<TABLE>
<CAPTION>


                                                                                                THREE
                                                                                            MONTHS ENDED
                                                                                              MARCH 31,
                                                                                        2001            2000

CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                                  <C>            <C>
   Net loss                                                                          $     (2,696)  $     (3,304)
                                                                                     ------------   ------------
   Adjustments to reconcile net loss to net cash provided by
     (used in) operating activities:
       Changes in assets and liabilities:
         Interest receivable                                                                 (766)         2,600
         Accounts payable and accrued expenses                                                834          2,659
                                                                                     ------------   ------------

                  Total adjustments                                                            68          5,259
                                                                                     ------------   ------------

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                                        (2,628)         1,955
                                                                                     ------------   ------------

NET CHANGE IN CASH AND CASH EQUIVALENTS                                                    (2,628)         1,955

CASH AND CASH EQUIVALENTS - beginning                                                     250,618        252,466
                                                                                     ------------   ------------

CASH AND CASH EQUIVALENTS - ending                                                   $    247,990   $    254,421
                                                                                     ============   ============


SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
   Cash paid for income taxes                                                        $       -      $        300
                                                                                     ============   ============
</TABLE>




           See accompanying notes to consolidated financial statements
<PAGE>
              NATIONAL DIVERSIFIED SERVICES, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                 MARCH 31, 2001
                                   (UNAUDITED)





NOTE 1 - BASIS OF PRESENTATION

     The attached summarized financial information does not include all
     disclosures required to be included in a complete set of financial
     statements prepared in conformity with generally accepted accounting
     principles. Such disclosures were included with the consolidated financial
     statements of the Company at December 31, 2000, included in its annual
     report on Form 10-K. Such statements should be read in conjunction with the
     data herein.


NOTE 2 - ADJUSTMENTS

     The financial information reflects all normal recurring adjustments which,
     in the opinion of management, are deemed necessary for a fair presentation
     of the results for the interim periods. The results for the interim periods
     are not necessarily indicative of the results to be expected for the year.


NOTE 3 - CASH EQUIVALENTS

     Cash equivalents are comprised of an investment in short-term commercial
     paper with maturities of less than ninety days.


NOTE 4 - ACCRUED SALARIES - OFFICER

     Accrued salaries - officer represents $58,750 for the period December 1986
to November 22, 1989.


<PAGE>
           Management's Discussion and Analysis of Financial Condition
                            and Results of Operations

Results of Operations

         During the three months ended March 31, 2001, the Company had no
revenues other than interest income since the Company terminated its import and
sale business operations in 1990. The Company is presently exploring various
business opportunities that may be available to it. No assurances can be given
that the Company will be successful in completing a transaction to acquire an
operating business.

Liquidity and Capital Resources

         Financing of the Company's activities has been provided from the public
sale of its securities for cash amounting to a net of approximately $600,000. At
March 31, 2001, the Company's working capital amounted to $236,022 with cash
assets of $247,990. Management believes that its cash assets are adequate to
meet the Company's short term and long term liquidity and cash requirements
until such time, if ever, as the Company completes a transaction to establish an
operating business.



                                       7
<PAGE>

                       NATIONAL DIVERSIFIED SERVICES, INC.


                           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 Security Holders:
         ----------------------------------------------------

                  None

Item 5.  Other Information:                 None
         ------------------

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

                  (a)      No reports on Form 8-K were filed during the quarter
                           ended March 31, 2001.

                                       8
<PAGE>
                       NATIONAL DIVERSIFIED SERVICES, INC.



                                   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.



                                             NATIONAL DIVERSIFIED SERVICES, INC.
                                                        (Registrant)




Dated: May 14, 2001                            /s/Morry Rubin
                                                  Morry Rubin, President, Chief
                                                  Executive, Financial and
                                                  Accounting Officer

                                       9