UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

/X/   Quarterly Report under Section 13 or 15(d) of the Securities Exchange
      Act of 1934 For the quarterly period ended March 31, 2003

/ /   Transition Report under Section 13 or 15(d) of the Securities Exchange
      Act of 1934.
      For transition period from _____________ to ________________.

                        Commission File Number: 2-98014-D

                            NOVA COMMUNICATIONS LTD.
        (Exact name of small business issuer as specified in its charter)

          Nevada                                           95-4756822
 (State or other jurisdiction of                      (IRS Employer
  incorporation or organization)                      Identification Number)

                 370 Amapola Ave., Suite 202, TORRANCE, CA 90501
                    (Address of principal executive offices)

          Issuer's telephone number including area code: (310) 642-0200

Check whether the Issuer (1) has 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:
                                                               Yes / X / No/  /

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:

Common stock: $.001 par value 218,958,180 shares outstanding at March 31, 2003.

Documents incorporated by reference: No reports on Form 8K were filed during the
period covered by this report

Total sequentially numbered pages in this document: 31

















                                       1
<PAGE>
                                      INDEX

                            NOVA COMMUNICATIONS LTD.


PART I.  FINANCIAL INFORMATION

Item 1   Financial Statements March 31, 2003 (unaudited) and December 31, 2002
         (audited)

         (a)  Consolidated Balance Sheets, March 31, 2003 (unaudited) and
              December 31, 2002 (audited).

         (b)  Statements of Operations and Comprehensive Loss for the Three
              Months Ended March 2003 and 2002 (unaudited).

         (c)  Notes to Consolidated Financial Statements.

Item 2   Management's Discussion And Analysis Of Financial Condition And
         Results Of Operations

PART     II. OTHER INFORMATION

Item 5   Other Information

Item 6   Exhibits And Reports On Form 8-K
































                                       2
<PAGE>
PART I.            FINANCIAL INFORMATION

Item 1             Financial Statements
<TABLE>
<CAPTION>
                            NOVA COMMUNICATIONS LTD.

                           Consolidated Balance Sheets

                                                                              March 31           December 31
                                                                                2003                2002
                                                                             (Unaudited)         (Audited)
                                                                          --------------       --------------
                                  ASSETS

<S>                                                                       <C>                  <C>
Current assets:
   Cash                                                                   $      143,688       $      161,129
   Accounts receivables, less allowance for uncollectible
    accounts of $40,464 in 2003 and $38,015 in 2002                               51,545               28,003
   Notes receivable                                                               29,873               31,276
   Prepaid expenses and deposits                                                  61,123               21,123
   Available-for-sale investments                                                 32,625               32,625
                                                                          --------------       --------------
       Total current assets                                                      318,854              274,156




Equipment, net                                                                   184,290              194,401




Other assets:
   Goodwill, less accumulated amortization of $41,875
    in 2003 and $37,688 in 2002                                                   75,375               79,562
   Deposits                                                                        3,063                3,063
                                                                          --------------       --------------
       Total other assets                                                         78,438               82,625





                                                                          $      581,582       $      551,182
                                                                          ==============       ==============












                             See accompanying notes.
                                        3
<PAGE>
                            NOVA COMMUNICATIONS LTD.

                     Consolidated Balance Sheets (continued)


                                                                              March 31           December 31
                                                                                2003                2002
                                                                             (Unaudited)         (Audited)
                                                                          --------------       --------------
            LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
            ---------------------------------------------

Current liabilities:
   Accounts payable                                                       $      336,282       $      420,427
   Payable to related parties                                                     10,109               27,121
   Accrued payroll and payroll related liabilities                               241,465              255,368
   Customer deposits                                                             109,121               24,538
   Income taxes payable                                                                -                1,600
   Other accrued liabilities                                                     105,712               46,859
   Other accrued liabilities to related parties                                        -              297,197
   Long-term obligations, due within one year                                    146,155              118,586
                                                                          --------------       --------------
       Total current liabilities                                                 948,844            1,191,696

Long-term obligations                                                            859,400              863,218

Notes payable to related parties                                                       -              625,000

Commitments

Net capital deficiency:
   Preferred stock; no par value; authorized 10,000,000
    shares                                                                             -                   -
   Common stock; $.001 par value; authorized
    500,000,000 shares; outstanding 218,958,180,shares in
    2003 and 46,958,180 shares in 2002                                           218,958               46,958
   Additional paid-in capital                                                 14,928,039           13,797,842
   Retained deficit                                                          (15,908,527)         (15,508,400)
   Unrealized holding loss from available-for-sale
    investments                                                                 (465,132)            (465,132)
                                                                          --------------       --------------
       Net capital deficiency                                                 (1,226,662)          (2,128,732)
                                                                          --------------       --------------

                                                                          $      581,582       $      551,182
                                                                          ==============       ==============
</TABLE>

                             See accompanying notes.
                                        4
<PAGE>
                            NOVA COMMUNICATIONS LTD.

                 Statements of Operations and Comprehensive Loss


                                                        For The Three Months
                                                            Ended March
                                                            (Unaudited)
                                                        2003            2002
                                                    -----------     -----------


Revenues                                            $ 1,644,557     $ 2,099,529

Cost of revenues                                      1,354,109       1,816,172
                                                    -----------     -----------

Gross margin                                            290,448         283,357

Operating expenses:
   Selling                                               77,330          93,240
   Operating                                            114,644          33,532
   General and administrative                           473,345         198,822
                                                    -----------     -----------
       Total operating expenses                         665,319         325,594
                                                    -----------     -----------

Loss from operations                                   (374,871)        (42,237)

Other income (expenses):
   Loan fees                                                  -               -
   Interest, net                                        (25,256)        (28,569)
                                                    -----------     -----------
       Total other income (expenses)                    (25,256)        (28,569)
                                                    -----------     -----------

Loss before provision (benefit) for income taxes       (400,127)        (70,806)

Provision (benefit) for income taxes                         (-)             (-)
                                                    -----------     -----------

Net loss of continuing operations                      (400,127)        (70,806)

Net loss of discontinued operations                           -        (470,801)

Net loss                                            $  (400,127)    $  (541,607)
                                                    ===========     ===========

Net loss per common share:
Continuing operations                               $    (.0081)    $    (.0023)
                                                    ===========     ===========

Discontinued operations                             $         -     $    (.0150)
                                                    ===========     ===========



                             See accompanying notes.
                                        5
<PAGE>
                            NOVA COMMUNICATIONS LTD.

                 Statements of Operations and Comprehensive Loss




                                                        For The Three Months
                                                            Ended March
                                                            (Unaudited)
                                                        2003            2002
                                                    -----------     -----------


Net loss                                            $  (400,127)    $  (541,607)

Unrealized holding gain (loss) on available-for-sale
investments                                                   -              -
                                                    -----------     -----------

Comprehensive loss                                  $  (400,127)    $ (541,607)
                                                    ===========     ===========


Comprehensive loss per common share                 $    (.0081)    $    (0173)
                                                    ===========     ===========
































                              See accompanying notes.
                                        6
<PAGE>
                            NOVA COMMUNICATIONS LTD.
                          Notes To Financial Statements

1.       Business and summary of significant accounting policies
         -------------------------------------------------------

         Business: Nova Communications Ltd. (the "Company" or "Nova") is
         incorporated under the laws of the State of Nevada. The Company invests
         in and provides managerial assistance to developing companies. Basis of
         consolidation: The consolidated financial statements include the
         accounts of Nova and it's 100% owned subsidiary Kadfield, Inc.
         ("Kadfield"). All intercompany accounts and transactions have been
         eliminated.

         Interim reporting: The Company's year-end for accounting and tax
         purposes is December 31. In the opinion of management of the Company,
         the accompanying consolidated financial statements as of June 30, 2002
         and for the six months then ended contain all adjustments, consisting
         of only normal recurring adjustments, except as noted elsewhere in the
         notes to the consolidated financial statements, necessary to present
         fairly its financial position, results of its operations and cash
         flows. The consolidated results of operations for the six months ended
         June 30, 2002 are not necessarily indicative of the results to be
         expected for the full year.

         Cash and cash concentrations: For purposes of the statement of cash
         flows, the Company and its subsidiaries consider cash equivalents to be
         highly liquid instruments if, when purchased, their original due dates
         were within three months. The Company and its subsidiary place their
         cash in financial institutions. At various times throughout the year,
         cash held in these accounts has exceeded Federal Deposit Insurance
         Corporation limits. Neither the Company nor its subsidiary has
         experienced any losses as a result of these cash concentrations.

         Investments: Investments are accounted for under the provisions of
         Statement of Financial Accounting Standards No. 115, "Accounting for
         Certain Investments in Debt and Equity Securities" ("SFAS 115"). SFAS
         115 requires that all applicable investments be classified as trading
         securities, available-for-sale securities, or hold-to-maturity
         securities. The statement further requires that hold-to-maturity
         securities be reported at amortized cost and available-for-sale
         securities be reported at fair market value, with unrealized gains and
         losses excluded from earnings but reported in a separate component of
         shareholders' equity (net of the effects of income taxes) until they
         are disposed of or sold. At the time of disposal or sale, any gains or
         losses, calculated by the specific identification method, are
         recognized as a component of operating results.

         Equipment: Equipment is carried at cost. Depreciation is computed using
         the straight-line method over the estimated useful lives of the
         depreciable assets, which range from five to fifteen years. Computer
         software obtained or developed for internal use is capitalized in
         accordance with Statement of Position 98-1, "Accounting for the Cost of
         Computer Software Developed for Internal Use". Amortization is computed
         using the straight-line method over seven years.


                                       7
<PAGE>
                            NOVA COMMUNICATIONS LTD.
                          Notes To Financial Statements

1.       Business and summary of significant accounting policies (continued)
         -------------------------------------------------------------------

         Goodwill: Goodwill represents the excess purchase price over the
         estimated fair value of the net assets of its subsidiary. Amortization
         is computed using the straight-line method over seven years.

         Impairment of long-lived assets: The Company and its subsidiary assess
         the recoverability of long-lived assets by determining whether the
         depreciation and amortization of the asset's balance over its remaining
         life can be recovered through projected undiscounted future cash flows.
         The amount of impairment, if any, is measured based on fair value and
         charged to operations in the period in which the impairment is
         determined by management.

         Revenue recognition: Revenue from Nova's managerial assistance services
         is recognized when services are rendered. Revenue from Kadfield's
         computer and electronic equipment sales is recognized when equipment is
         shipped to customers.

         Stock based compensation: The Company and its subsidiary account for
         stock based compensation under Statement of Financial Accounting
         Standards No. 123 ("SFAS 123"). SFAS 123 defines a fair value based
         method of accounting for stock based compensation. However, SFAS 123
         allows an entity to continue to measure compensation cost related to
         stock and stock options issued to employees using the intrinsic method
         of accounting prescribed by Accounting Principles Board Opinion No. 25
         ("APB 25"), "Accounting for Stock Issued to Employees". Entities
         electing to remain with the accounting method of APB 25 must make pro
         forma disclosures of net income and earnings per share, as if the fair
         value method of accounting defined in SFAS 123 had been applied. The
         Company has elected to account for its stock based compensation to
         employees under APB 25.

         Advertising: The Company and its subsidiary expense the cost of
         advertising as incurred as selling expenses. Advertising expenses were
         approximately $77,329 for the first quarter of 2003 ($93,240 for 2002).

         Reporting comprehensive income: The Company and its subsidiary report
         and display comprehensive income and its components as separate amounts
         in the consolidated financial statements. Comprehensive income includes
         all changes in equity during a period that results from recognized
         transactions and other economic events other than transactions with
         owners.

         Income taxes: Income taxes are provided on the liability method whereby
         deferred tax assets and liabilities are recognized for the expected tax
         consequences of temporary differences between the tax bases and
         reported amounts of assets and liabilities. Deferred tax assets and
         liabilities are computed using enacted tax rates expected to apply to
         taxable income in the years in which temporary differences are expected
         to be recovered or settled. The effect on deferred tax assets and
         liabilities from a change in tax rates is recognized in income in the
         period that includes the enactment date.


                                       8
<PAGE>
                            NOVA COMMUNICATIONS LTD.
                          Notes To Financial Statements

1.       Business and summary of significant accounting policies (continued)
         -------------------------------------------------------------------

         The Company and its subsidiary provide a valuation allowance for
         certain deferred tax assets, if it is more likely than not that the
         Company or its subsidiaries will not realize tax assets through future
         operations

         Segment Reporting: The Company and its subsidiary report information
         about operating segments and related disclosures about products and
         services, geographic areas and major customers under Statement of
         Financial Accounting Standards No. 131 (SFAS 131), "Disclosures about
         Segments of an Enterprise and Related Information". Operating segments
         are defined as components of an enterprise for which separate financial
         information is available that is evaluated regularly by management in
         deciding how to allocate resources and in assessing performance.

         Net loss per common share: Net loss per common share is computed by
         dividing net loss by the weighted average number of common shares
         outstanding during the period. The weighted average number of common
         stock shares outstanding was 49,342,623 for the first quarter of 2003
         (31,430,050 for 2002). Preferred stock is not considered to be a common
         stock equivalent. Common stock to be issued is not considered to be a
         common stock equivalent as the effect on net loss per common share
         would be anti-dilutive.

         Significant risks and uncertainties: The process of preparing financial
         statements in conformity with generally accepted accounting principles
         requires the use of estimates and assumptions regarding certain types
         of assets, liabilities, revenues and expenses. Management of the
         Company has made certain estimates and assumptions regarding the
         collectibility of notes receivable and estimated fair value of
         investments. Such estimates and assumptions primarily relate to
         unsettled transactions and events as of the date of the financial
         statements. Accordingly, upon settlement, actual results may differ
         from estimated amounts.

2.       Operations

         The Company has experienced recurring losses from operations and as of
         March 31, 2003 had a working capital deficit of $629,990 ($917,540 at
         December 31, 2002) and a net capital deficiency of $1,226,622
         ($2,128,732 at December 31, 2002). In addition Kadfield is in default
         on various long-term obligations.

         During 2002, the Company divested of its investment in Communications
         2000, Inc., dba TEC-networks. The Company is also currently in
         negotiations to acquire the operations of a division of a publicly
         traded telecommunications company and a privately held personal
         watercraft manufacturer.

         The Company believes the above actions and along with other plans will
         allow them to continue operations and ultimately achieve profitability.
         Until then, the Company



                                       9
<PAGE>
                            NOVA COMMUNICATIONS LTD.
                          Notes To Financial Statements

2.       Operations (continued)
         ----------------------

         is dependent upon its ability to obtain additional capital and debt
         financing. The consolidated financial statements do not reflect
         adjustments relating to the recorded asset amounts, or the amounts of
         liabilities that would be necessary should the Company not be able to
         continue in existence.

3.       Investments
         -----------

         All of the Company's investments are considered by Management to be
         available-for-sale investments. The following is a summary of
         investment securities:

                                                     March 31    December 31
                                                       2003            2002
                                                   -------------   -------------
                  Corporate securities:
                      Amortized cost               $   497,757     $    497,757
                      Gross unrealized losses          (465,132)       (465,132)
                                                    -----------     -----------
                         Estimated fair value      $    32,625     $     32,625
                                                    ==========      ===========

         The Company's available-for-sale investments consist of the following
         Corporate Securities:

                    Gulf Coast Hotels, Inc. ("Gulf Coast"): The Company is a
           minority partner in Gulf Coast that was formed to purchase the rights
           to approximately 1.4 acres in Biloxi, Mississippi and to develop a
           high-rise condominium hotel on that site. Gulf Coast has been unable
           to raise the approximately $1,000,000 necessary to complete the down
           payment. The seller has provided extensions to Gulf Coast, however
           the agreement is in default. Management of Nova has determined that
           its investment in Gulf Coast had no value based upon the uncertainty
           of the outcome of Gulf Coast's default.

                    Legal Club: The Company owns 337,500 shares of common stock
           of Legal Club, a publicly traded, nationwide membership organization
           providing access to attorney services at discounted rates. The value
           of the Company's investment in Legal Club was determined based upon
           the closing bid price of their common stock on December 31, 2002.












                                       10
<PAGE>
                            NOVA COMMUNICATIONS LTD.
                          Notes To Financial Statements

5.       Equipment
         ---------

         Equipment consisted of the following:
                                                        March 31    December 31
                                                          2003          2002
                                                       ---------     ---------

           Office furniture and equipment              $  99,583     $ 100,834
           Computer software                             261,750       261,750
                                                       ---------     ---------
                                                         361,333       362,584
           Less accumulated depreciation                (177,043)     (168,183)
                                                       ---------     ---------

              Equipment, net                           $ 184,290     $ 194,401
                                                       =========     =========

6.       Long-term obligations
         ---------------------

         Long-term obligations consisted of the following:
                                                        March 31    December 31
                                                          2003          2002
                                                       ---------     ---------

          Note payable and accrued interest payable to
          PFK Development Group, secured by 337,500
          shares of Legal Club stock and Nova has
          pledged 35% of its cash receipts from
          collections of its notes receivable,
          borrowings bear interest at 10% per annum,
          borrowings and accrued interest are due
          December 2004.                               $ 753,927     $ 736,427

           Capitalized lease obligations                 251,628       245,377
                                                       ---------     ---------
                                                       1,005,555       991,804
           Less principal due within one year           (146,155)     (118,586)
                                                       ---------     ---------
              Long-term obligations                    $ 859,400     $ 863,218
                                                       =========     =========

         Aggregate minimum future lease payments under capitalized leases are as
         follows for the years ending subsequent to December 31, 2002:
            Years ending December 31:
                        2003                                    $    162,465
                        2004                                          68,985
                        2005                                          51,566
                        2006                                           6,240
                                                                 -----------
           Total minimum lease payment                               289,256
            Less amount representing interest                        (43,879)
                                                                 -----------
            Present value of minimum future lease payments      $    245,377
                                                                 ===========







                                       11
<PAGE>
                            NOVA COMMUNICATIONS LTD.
                          Notes To Financial Statements

7.       Notes payable to related parties
         --------------------------------

         Notes payable to related parties is due to Palaut Management, Inc. in
         exchange for management consulting services. The note is unsecured,
         non-interest bearing, and due June 2004. Close family members of a
         stockholder of Nova control Palaut Management, Inc. This debt was
         exchanged for common shares of the Company as of March 31, 2003. (See
         note 8 below.)

8.       Common stock
         ------------

         On April 10, 2003 to be effective March 31, 2003, the Company entered
         into an Agreement To Convert Debt with Palaut Management, Inc. Under
         the terms of this agreement the Company will issue to Palaut
         Management, Inc. one hundred million (100,000,000) shares of the
         Company's common stock. in exchange for its related party note payable
         of $625,000, accrued management fee payable of $297,197 and accrued
         related party payable of $20,000. The value of these shares to be
         issued was in excess on the closing bid price ($700,000) of the
         Company's shares as quoted on the NASD OTC Bulletin Board as of the
         effective date of the agreement.

         On April 10, 2003 to be effective January 1, 2003, the Company entered
         into an Employment Agreement with Kenneth D. Owen to serve as its
         President and Chief Executive Officer for a period of twelve months at
         the base compensation of $180,000 per annum. The Company acknowledged
         that Mr. Owen had acted as President and Chief Executive Officer of the
         Company for the past twenty-four (24) months without an employment
         agreement and without any compensation. In consideration of such past
         uncompensated services, the Company agreed to issue to Mr. Owen
         seventy-two million (72,000,000) shares of the Company's common stock.
         This number of shares to be issued was based on the closing bid price
         of the Company's shares as quoted on the NASD OTC Bulletin Board as of
         the effective date of the agreement.

         In March 2002, the Board of Directors authorized the issuance of
         143,313 shares of common stock of the Company to an in exchange for
         long-term obligations. Management of the Company valued the shares
         issued at $.175 per share, the closing bid price of the Company's
         common stock at the date of issuance. Management of the Company
         estimated the value of the Company's shares granted after considering
         the historical trend of the trading prices for its common stock and the
         limited volume of shares being traded.

         In June 2002, the Board of Directors authorized the issuance of 400,000
         shares of common stock of the Company to PFK Development Group as loan
         fees to extend the due date of a note payable to them from December
         2003 to December 2004. Management of the Company valued the shares
         issued at $.175 per share, the closing bid price of the Company's
         common stock at the date of issuance, and recorded loan fees expense of
         $70,000. Management of the Company estimated the value of the Company's
         shares granted after considering the historical trend of the trading
         prices for its common stock and the limited volume of shares being
         traded.

                                       12
<PAGE>
                            NOVA COMMUNICATIONS LTD.
                          Notes To Financial Statements

8.       Common stock (continued)
         ------------------------
         During 2002, the Board of Directors authorized the issuance of an
         aggregate of 14,986,410 shares of common stock of the Company in
         exchange professional services. The weighted average issuance price of
         the shares was $.04 per share. Management of the Company valued the
         shares issued at the closing bid price of the Company's common stock at
         the date of issuance. Management of the Company estimated the value of
         the Company's shares granted after considering the historical trend of
         the trading prices for its common stock and the limited volume of
         shares being traded. The Company recorded professional fees aggregating
         $622,848 during the year ended December 31, 2002 as a result of these
         grants.

9.       Income taxes
         ------------

         The components of the provision for income taxes are as follows:

                                                          March 31   December31
                                                            2003        2002
                                                         ----------  ----------

           State of California                           $       -   $       -
                                                         ----------  ----------

              Currently provision (benefit)              $       -   $       -
                                                         ==========  ==========

         Deferred income taxes consisted of the following:
                                                                  December31
                                                                    2002
                                                                    ----
         Deferred tax assets
              Net operating loss carryover                       $3,828,800
              Unrealized losses on investments                      158,100
              Allowance for uncollectible accounts                   12,900
                                                                 -----------

                                                                 $3,999,800

              Valuation allowance for deferred tax assets        (3,999,800)

         Net deferred income taxes                               $       -
                                                                 ==========


         The Company has approximately $11,261,000 in Federal and State of
         California net operating losses, which, if not utilized, expire through
         2022.

         The utilization of the net operating loss carryforwards could be
         limited due to restrictions imposed under Federal and state laws upon a
         change in ownership. The amount of the limitation, if any, has not been
         determined at this time. A valuation allowance is provided when it is
         more likely than not that some portion or all of the deferred tax
         assets will not be realized. As a result of the Company's continued
         losses and uncertainties surrounding the realization of the net
         operating loss

                                       13
<PAGE>
                            NOVA COMMUNICATIONS LTD.
                          Notes To Financial Statements

9.       Income taxes (continued)
         ------------------------

         carryforwards, management has determined that the realization of
         deferred tax assets is uncertain. Accordingly, a valuation allowance
         equal to the net deferred tax asset amount has been recorded as of
         March 31, 2003 and December 31, 2002.

10.      Other related party transactions
         --------------------------------

         The Company has entered into an agreement with a company for management
         consulting services. The management company is controlled by close
         family members of a stockholder of Nova. The agreement expires in June
         2003 with renewal provisions. Under the terms of the agreement, the
         Company is obligated to pay the management company $205,000 per year.

12.      Segment information
         -------------------

         The Company considers its operations to be in two segments, each of
         which are strategic businesses that are managed separately because each
         business sells or provides distinct products and services. The segments
         are as follows: managerial assistance to developing companies and sale
         of computer and electronic equipment.
<TABLE>
<CAPTION>
         Financial information by business segment is as follows:
                                                                 Computer
                                                                    and
                                               Managerial       electronic          Total
                                               assistance        equipment        segments
                                             --------------   --------------  --------------
                                                   Three Months Ended March 31, 2003
                                                   ---------------------------------
<S>                                          <C>              <C>             <C>
           Revenues                          $       7,724    $   1,636,833   $   1,644,557
           Income (loss) from operations          (427,932)          31,993        (395,939)
           Identifiable assets                      80,793          425,414         506,207
           Capital expenditures                          -                -               -
           Depreciation and
              amortization                             354            9,756          10,110

                                                                 Computer
                                                                    and
                                               Managerial       electronic          Total
                                               assistance        equipment        segments
                                             --------------   --------------  --------------
                                                   Three Months Ended March 31, 2002
                                                   ---------------------------------
           Revenues                          $      60,000    $   2,039,529   $   2,099,529
           Loss from operations                    (21,170)         (45,448)        (66,618)
           Identifiable assets                     559,650          543,507       1,103,157
           Capital expenditures                          -                -               -
           Depreciation and
              amortization                           1,263           10,626          11,889
</TABLE>

                                       14
<PAGE>
                            NOVA COMMUNICATIONS LTD.
                          Notes To Financial Statements

12.      Segment information (continued)
         -------------------------------

         Reconciliation of the segment information to the consolidated balances
         for loss from operations, total assets, and depreciation and
         amortization are as follows:
<TABLE>
<CAPTION>
                                                                 For The Three Months
                                                                    Ended March 31
                                                                 2003               2002
                                                           --------------    --------------
<S>                                                        <C>               <C>
           Segment loss from operations                    $    (395,939)    $     (66,618)
           Amortization of goodwill                               (4,188)           (4,188)
                                                           --------------    --------------
              Consolidated loss from operations            $    (400,127)    $     (70,806)
                                                           ==============    ==============

                                                              March 31         March 31
                                                                 2003             2002
                                                           --------------    --------------
           Segment identifiable assets                     $     506,207     $   1,103,157
           Goodwill, net                                          75,375            92,125
                                                             ------------      ------------
              Consolidated total assets                    $     581,582     $   1,195,282
                                                             ============      ============


                                                                 For The Three Months
                                                                    Ended March 31
                                                                 2003               2002
                                                           --------------    --------------

           Segment depreciation and amortization           $      10,110     $      11,889
           Amortization of goodwill                                4,188             4,188
                                                           --------------    --------------
              Consolidated depreciation and amortization   $      14,298     $      16,077
                                                           ==============    ==============
</TABLE>
















                                       15
<PAGE>
Item 2          Management's Discussion And Analysis Of Financial Condition
                And Results Of Operations

         Management's discussion and analysis should be read in conjunction with
the financial statements and the notes thereto.

RESULTS OF OPERATIONS

         These results include the operations of the Company and its
consolidated subsidiaries for the three months ended March 31, 2003 and March
31, 2002.

Net loss from continuing operations, comprehensive loss, net loss from
continuing operations per common share and comprehensive loss per common share

         Net loss from continuing operations for the three months ended March
31, 2003 was $(400,127), a loss increase of ($329,321) compared with a loss of
$(70,806) for the same three months of 2002. As a result, net loss from
continuing operations per share for the three months ended March 31, 2003 was
$(.0081), a loss increase of ($.0058) per share compared with a loss of $(.0023)
for the same three months of 2002.

         Comprehensive loss for the three months ended March 31, 2003 was
$(400,127), a loss decrease of $141,480 compared with a loss of $(541,607) for
the same three months of 2002. As a result, comprehensive loss per share for the
three months ended March 31, 2003 was $(.0081), a loss decrease of $.0092 per
share compared with a loss of $(.0173) for the same three months of 2002.

Revenues, cost of revenues and gross margin

         Net revenues for the three months ended March 31, 2003 were $1,644,557,
a decrease of ($454,972) compared with $2,099,529 for the same three months of
2002. Cost of revenues for the three months ended March 31, 2003 was $1,354,109,
or 82.34% of net revenues. Gross margin for the three months ended March 31,
2003 was $290,448, an increase of $7,091 compared with $283,357 for the same
three months of 2001.

Operating expenses

         Operating expenses for the three months ended March 31, 2003 were
$665,319, an increase of $339,725 compared with $325,594 for the same three
months of 2002. In 2003, operating expenses included $405,000 in executive
salary under an employment agreement with the Company's President of which
$360,000 was in recognition of prior years service. Without this item, other
operating expenses for the 1st quarter decreased ($65,275) from 2002 to 2003, as
a result of cost reduction efforts.












                                       16
<PAGE>
Other income (expenses)

         Net interest expense for the three months ended March 31, 2003 was
$25,256, a decrease of ($3,313) compared with $28,569 for the same three months
of 2002.

OPERATING STRATEGIES AND COST REDUCTIONS

         The Company and its subsidiaries have been hampered in their operations
during 2003 and 2002 by a shortage of working capital. As of March 31, 2003,
172,000 000 shares of the Company's common stock were exchanged for $1,302,197
indebtedness. These shares will be issued to parties related to the Company.
Despite engaging the services of several investment bankers and professional
fundraisers during 2002, no funds have been raised from the sale of shares
during 2003 to outside parties ($92,000 during 2002). The Company's growth and
strategic operating plans for TEC-networks were predicated upon raising
$2,000,000 to $4,000,000 in working capital during 2002 and 2001. Without
adequate working capital, TEC-networks was not able to expand its sales presence
as planned. It was also not able to sponsor levels of advertising programs
necessary to create a significant number of leads for its existing sales force.

         On July 22, 2002 the Board of Directors met and approved the sale of
the Company's 46.68% interest in Communications 2000, Inc., which transaction
was effective on July 1, 2002. The financial statements for the three months
ended March 31, 2002 include the accounts of Communications 2000, Inc. as Net
Loss of Discontinued Operations of $(470,801).

         Kadfield, Inc., operating as BuyMicro, was successful in increasing its
lines of credit with its suppliers during 2002. It also has focused a portion of
its business in large systems that are financed under capital lease arrangements
for its customers.

         The Company and its principal subsidiary, Kadfield, Inc , continue to
suffer from a working capital shortage. The effort to raise additional working
capital continues. Although Kadfield, Inc. is operating profitably, additional
capital is required to enable it to attain its business plan. New product lines
are being added to its business plan and an active effort is underway to acquire
additional lines and or other business that will be synergistic with Kadfield's
plan.

         The Company is also currently in negotiations to acquire the operations
of a division of a publicly traded telecommunications company and a privately
held personal watercraft manufacturer. The Company believes the above actions,
events and other factors will allow them to continue operations and ultimately
achieve profitability. Until then, the Company is dependent upon its ability to
obtain additional capital and debt financing.












                                       17
<PAGE>
PART II. OTHER INFORMATION

Item 5            Other Information
                   None

Item 6            Exhibits And Reports On Form 8-K

(a)      Exhibits

Exhibit
Number            Description of Document
------            -----------------------
2                 Articles and Agreement of Merger Between Nova Communications
                  Ltd. and First Colonial Ventures, Ltd. - July 21, 1999

3(3)(i)(1)        First Colonial Ventures, Ltd. Articles of Incorporation -
                  March 25, 1985 (Incorporated by reference)

3(3)(i)(2)        First Colonial Ventures, Ltd. Amendment to Articles of
                  Incorporation - August 12, 1985 (Incorporated by reference)

3(3)(i)(3)        First Colonial Ventures, Ltd. Amendment to Articles of
                  Incorporation -September 3, 1985 (Incorporated by reference)

3(3)(i)(4)        First Colonial Ventures, Ltd. Amendment to Articles of
                  Incorporation -February 3, 1992 (Incorporated by reference)

3(3)(i)(5)        Nova Communications Ltd Articles of Incorporation - July 13.
                  1999

3(3)(ii)(1)       Bylaws (Incorporated by reference)


(b)               No reports on Form 8K were filed during the period covered by
                  this report.























                                       18
<PAGE>
SIGNATURES:

In accordance with Section 13 or 15 (d) of the Exchange Act, the company caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


NOVA COMMUNICATIONS LTD. (Company)

Date:  May 19, 2003



By:   /s/  KENNETH D. OWEN
      --------------------
      Kenneth D. Owen,
      President


In accordance with the Exchange Act, this report has been signed below by the
following persons on behalf of the Company in the capacities and on the dates
indicated:

May 19, 2003



/s/KENNETH D. OWEN
---------------------
Kenneth D. Owen                                          President and Director

May 19, 2003



/s/ LESLIE I. HANDLER                                    Treasurer and Director
---------------------
Leslie I. Handler

May 19, 2003



/s/BRYCE SHERWOOD                                        Director
---------------------
Bryce Sherwood
<PAGE>
FORM 10-QSB CERTIFICATION

         I, Kenneth D. Owen, certify that:

         1. I have reviewed this quarterly report on Form 10-QSB of March 31,
         2003.

         2. Based on my knowledge, this quarterly report does not contain any
         untrue statement of material fact or omit to state a material fact
         necessary to make the statements made, in light of the circumstances
         under which such statements were made, not misleading with respect to
         the period covered by this quarterly report;

         3. Based on my knowledge, the financial statements, and other financial
         information included in this quarterly report, fairly present in all
         material respects the financial condition, results of operations and
         cash flows of the registrant as of, and for, the periods presented in
         this quarterly report;

         4. The registrant's other certifying officers and I are responsible for
         establishing and maintaining disclosure controls and procedures ( as
         defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and
         have:

         a) designed such disclosure controls and procedures to ensure that
         material information relating to the registrant, including its
         consolidated subsidiaries, is made known to us by others within those
         entities, particularly during the period in which this quarterly report
         is being prepared;

         b) evaluated the effectiveness of the registrant's disclosure controls
         and procedures as of a date within 90 days prior to the filing date of
         this quarterly report (the "Evaluation Date); and

         c) presented in this quarterly report our conclusions about the
         effectiveness of the disclosure controls and procedures based on our
         evaluation as of the Evaluation Date;

         5. The registrant's other certifying officers and I have disclosed,
         based on our most recent evaluation, to the registrant's auditors and
         the audit committee of the registrant's board of directors ( or person
         performing the equivalent functions):

         a) all significant deficiencies in the design or operation of internal
         controls which could adversely affect the registrant's ability to
         record, process, summarize and report financial date and have
         identified for the registrant's auditors any material weaknesses in
         internal controls; and
<PAGE>


         b) any fraud, whether or not material, that involves management or
         other employees who have a significant role in the registrant's
         internal controls; and

         6. The registrant's other certifying officers and I have indicated in
         this quarterly report whether or not there are significant changes in
         internal controls or other factors that could significantly affect
         internal controls subsequent to the date of our most recent evaluation,
         including any corrective actions with regard to significant
         deficiencies and material weaknesses.

         Date:  May 19, 2003



         By:   /s/  KENNETH D. OWEN
         Kenneth D. Owen, President



                 STATEMENT OF CHIEF EXECUTIVE OFFICER REGARDING
            FACTS AND CIRCUMSTANCES RELATING TO EXCHANGE ACT FILINGS


I, Kenneth D. Owen, state and certify as follows:

         The financial statements filed with the report on Form 10-QSB for the
period ended March 31, 2003 fully comply with the requirements of Sections 13(a)
and 15(d) of the Securities Exchange Act of 1934 and that the information
contained in said periodic report fairly presents, in all material respects, the
financial condition and results of operations of Nova Communications Ltd.

         This Statement is submitted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.


Date:  May 19, 2003



By:   /s/  KENNETH D. OWEN
Kenneth D. Owen,
Chief Executive Officer