UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                   Form 10-QSB

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(Mark one)
      XX          QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
--------------
                  EXCHANGE ACT OF 1934

                           For the quarterly period ended March 31, 2001

--------------    TRANSITION REPORT UNDER SECTION 13 OR  15(d)  OF THE  EXCHANGE
                  ACT OF 1934



                  For the transition period from ______________ to _____________

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                         Commission File Number: 0-10999
                                                 -------

                         Eldorado Financial Group, Inc.
        (Exact name of small business issuer as specified in its charter)

           Florida                                  59-2025386
-----------------------------              ----------------------------
  (State of incorporation)                  (IRS Employer ID Number)

                     211 West Wall Street, Midland, TX 79701
                     ---------------------------------------
                    (Address of principal executive offices)

                                 (915) 682-1761
                                 --------------
                           (Issuer's telephone number)


--------------------------------------------------------------------------------


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

State the number of shares outstanding of each of the issuer's classes of common
equity as of the latest practicable date: April 16, 2001: 9,166,515
                                          -------------------------

Transitional Small Business Disclosure Format (check one): YES    NO X
                                                              ---   ---



<PAGE>

                         Eldorado Financial Group, Inc.

                Form 10-QSB for the Quarter ended March 31, 2001

                                Table of Contents


                                                                            Page
                                                                            ----
Part I - Financial Information

  Item 1   Financial Statements                                                3

  Item 2   Management's Discussion and Analysis or Plan of Operation           8


Part II - Other Information

  Item 1   Legal Proceedings                                                   8

  Item 2   Changes in Securities                                               8

  Item 3   Defaults Upon Senior Securities                                     8

  Item 4   Submission of Matters to a Vote of Security Holders                 9

  Item 5   Other Information                                                   9

  Item 6   Exhibits and Reports on Form 8-K                                    9


Signatures                                                                    10





<PAGE>

S. W. HATFIELD, CPA
certified public accountants

Member:    American Institute of Certified Public Accountants
               SEC Practice Section
               Information Technology Section
           Texas Society of Certified Public Accountants

Item 1 - Part 1 - Financial Statements
--------------------------------------


                           Accountant's Review Report
                           --------------------------


Board of Directors and Shareholders
Eldorado Financial Group, Inc.

We have reviewed the  accompanying  balance sheets of Eldorado  Financial Group,
Inc. (a Florida  corporation) as of March 31, 2001 and 2000 and the accompanying
statements of operations and  comprehensive  income and cash flows for the three
months ended March 31, 2001 and 2000,  respectively.  These financial statements
are prepared in accordance with the instructions  for Form 10-QSB,  as issued by
the U. S. Securities and Exchange Commission, and are the sole responsibility of
the Company's management.

We conducted our review in accordance with standards established by the American
Institute  of  Certified  Public  Accountants.  A review  of  interim  financial
information consists principally of applying analytical  procedures to financial
data and making  inquiries of persons  responsible  for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with  generally  accepted  auditing  standards,  the  objective  of which is the
expression on an opinion  regarding the financial  statements  taken as a whole.
Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material  modifications that should
be made to the  accompanying  financial  statements for them to be in conformity
with generally accepted accounting principles.

The  accompanying  financial  statements  have been  prepared  assuming that the
Company  will  continue  as a  going  concern.  As  discussed  in  Note A to the
financial statements, the Company has no viable operations or significant assets
and is dependent upon  significant  shareholders to provide  sufficient  working
capital to maintain the integrity of the corporate entity.  These  circumstances
create  substantial  doubt  about the  Company's  ability to continue as a going
concern and are discussed in Note A. The financial statements do not contain any
adjustments that might result from the outcome of these uncertainties.



                                                             S. W. HATFIELD, CPA
Dallas, Texas
April 12, 2001


                      Use our past to assist your future sm
(secure mailing address)                   (overnight delivery/shipping address)
P. O. Box 820395                               9002 Green Oaks Circle, 2nd Floor
Dallas, Texas  75382-0395                               Dallas, Texas 75243-7212
214-342-9635 (voice)                                          (fax) 214-342-9601
800-244-0639                                                      SWHCPA@aol.com


<PAGE>

                         Eldorado Financial Group, Inc.
                                 Balance Sheets
                             March 31, 2001 and 2000

                                   (Unaudited)

                                     Assets
                                     ------
                                                           2001         2000
                                                        ----------   ----------
Current Assets
   Cash on hand and in bank                             $     --     $     --
                                                        ----------   ----------

   Total Assets                                         $     --     $     --
                                                        ==========   ==========



                      LIABILITIES AND SHAREHOLDERS' EQUITY
                      ------------------------------------
Liabilities
   Current liabilities
      Accounts payable - trade                          $     --     $     --
                                                        ----------   ----------

   Total Liabilities                                          --           --
                                                        ----------   ----------


Commitments and contingencies


Shareholders' equity (deficit)
   Common stock - $0.001 par value
      100,000,000 shares authorized
      9,166,515 and 10,000,000 shares
      issued and outstanding,  respectively                  9,167       10,000
   Additional paid-in capital                            2,001,729    2,000,260
   Accumulated deficit                                  (2,010,896)  (2,010,260)
                                                        ----------   ----------

   Total Shareholders' Equity (Deficit)                       --           --
                                                        ----------   ----------

   Total Liabilities and Shareholders' Equity           $     --     $     --
                                                        ==========   ==========



The  financial  information  presented  herein has been  prepared by  management
without audit by independent  certified  public  accountants.  The  accompanying
notes  are an  integral  part  of  these  financial  statements.  The  financial
information  presented  herein has been prepared by management  without audit by
independent  certified public  accountants.  See Accountant's Review Report. The
accompanying notes are an integral part of these financial statements.

                                                                               4

<PAGE>

                         Eldorado Financial Group, Inc.
                Statements of Operations and Comprehensive Income
                   Three months ended March 31, 2001 and 2000

                                   (Unaudited)

                                         Three months    Three months
                                             ended           ended
                                           March 31,       March 31,
                                              2001            2000
                                         ------------    ------------

Revenues                                 $       --      $       --
                                         ------------    ------------

Expenses
   General and administrative expenses            159             159
                                         ------------    ------------

      Total operating expenses                    159             159
                                         ------------    ------------

Loss from Operations                             (159)           (159)

Provision for Income Taxes                       --              --
                                         ------------    ------------

Net Loss                                         (159)           (159)

Other Comprehensive Income                       --              --
                                         ------------    ------------

Comprehensive Loss                       $       (159)   $       (159)
                                         ============    ============


Earnings per share of common
   stock outstanding computed
   on net income - basic and
   fully diluted                                  nil             nil
                                         ============    ============

Weighted-average number of
   shares outstanding - basic
   and fully diluted                        9,166,515      10,000,000
                                         ============    ============



The  financial  information  presented  herein has been  prepared by  management
without audit by independent  certified  public  accountants.  The  accompanying
notes  are an  integral  part  of  these  financial  statements.  The  financial
information  presented  herein has been prepared by management  without audit by
independent  certified public  accountants.  See Accountant's Review Report. The
accompanying notes are an integral part of these financial statements.

                                                                               5


<PAGE>

                         Eldorado Financial Group, Inc.
                            Statements of Cash Flows
                   Three months ended March 31, 2001 and 2000

                                   (Unaudited)

                                                      Three months  Three months
                                                         ended         ended
                                                        March 31,    March 31,
                                                          2001         2000
                                                          -----        -----
Cash Flows from Operating Activities
   Net loss for the period                                $(159)       $(159)
   Adjustments to reconcile net loss
      to net cash provided by operating activities
         Increase (Decrease) in
            Accounts payable - trade                        --           --
                                                          -----        -----

Net cash used in operating activities                      (159)        (159)
                                                          -----        -----


Cash Flows from Investing Activities                        --           --
                                                          -----        -----


Cash Flows from Financing Activities
   Cash contributed to support operations                   159          159
                                                          -----        -----

Net cash provided by financing activities                   159          159
                                                          -----        -----

Increase (Decrease) in Cash                                 --           --

Cash at beginning of period                                 --           --
                                                          -----        -----

Cash at end of period                                     $ --         $ --
                                                          =====        =====


Supplemental Disclosure of Interest and Income Taxes Paid
      Interest paid for the year                          $ --         $ --
                                                          =====        =====
      Income taxes paid for the year                      $ --         $ --
                                                          =====        =====



The  financial  information  presented  herein has been  prepared by  management
without audit by independent  certified  public  accountants.  The  accompanying
notes  are an  integral  part  of  these  financial  statements.  The  financial
information  presented  herein has been prepared by management  without audit by
independent  certified public  accountants.  See Accountant's Review Report. The
accompanying notes are an integral part of these financial statements.

                                                                               6


<PAGE>

                         Eldorado Financial Group, Inc.

                          Notes to Financial Statements


Note A - Organization and Description of Business

Eldorado  Financial Group, Inc. (Company) was incorporated under the laws of the
State of Florida on February 26, 1980 as Eldorado  Gold &  Exploration,  Inc. On
January 13, 1987, the Company  amended its Articles of  Incorporation  to change
the corporate name to Eldorado  Financial Group, Inc. and modified the Company's
capital  structure  to allow for the  issuance  of up to  100,000,000  shares of
common stock at $0.001 par value per share.

The Company has effectively had no operations,  assets or liabilities  since its
fiscal year ended December 31, 1989. Accordingly,  the Company is dependent upon
management and/or significant shareholders to provide sufficient working capital
to preserve the integrity of the corporate entity at this time. It is the intent
of management and significant shareholders to provide sufficient working capital
necessary to support and preserve the integrity of the corporate entity.

During interim periods, the Company follows the accounting policies set forth in
its annual  audited  financial  statements  filed with the U. S.  Securities and
Exchange  Commission  on its  Annual  Report on Form  10-KSB  for the year ended
December 31, 2000.  The  information  presented  within these interim  financial
statements  may not  include all  disclosures  required  by  generally  accepted
accounting  principles  and the  users of  financial  information  provided  for
interim periods should refer to the annual  financial  information and footnotes
when reviewing the interim financial results presented herein.

In the opinion of management,  the accompanying  interim  financial  statements,
prepared in  accordance  with the U. S.  Securities  and  Exchange  Commission's
instructions   for  Form  10-QSB,   are   unaudited  and  contain  all  material
adjustments,  consisting  only of  normal  recurring  adjustments  necessary  to
present fairly the financial condition,  results of operations and cash flows of
the Company for the respective  interim  periods  presented.  The current period
results of operations are not necessarily indicative of results which ultimately
will be reported for the full fiscal year ending December 31, 2001.

The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect  the  reported  amounts  of assets  and  liabilities  and  disclosure  of
contingent  assets and  liabilities at the date of the financial  statements and
the  reported  amounts of revenues  and expenses  during the  reporting  period.
Actual results could differ from those estimates.


Note B - Summary of Significant Accounting Policies

1. Cash and cash equivalents
   -------------------------

   For Statement of Cash Flows purposes,  the Company considers all cash on hand
   and in banks, including accounts in book overdraft positions, certificates of
   deposit and other  highly-liquid  investments with maturities of three months
   or less, when purchased, to be cash and cash equivalents.

2. Income Taxes
   ------------

   The Company  uses the asset and  liability  method of  accounting  for income
   taxes. At March 31, 2001 and 2000,  respectively,  the deferred tax asset and
   deferred tax liability  accounts,  as recorded when material to the financial
   statements,  are  entirely  the result of  temporary  differences.  Temporary
   differences   represent   differences  in  the   recognition  of  assets  and
   liabilities for tax and financial reporting purposes,  primarily  accumulated
   depreciation and  amortization,  allowance for doubtful accounts and vacation
   accruals.

                                                                               7

<PAGE>

                         Eldorado Financial Group, Inc.

                    Notes to Financial Statements - Continued


Note B - Summary of Significant Accounting Policies - Continued

2. Income taxes - continued
   ------------

   As of March  31,  2001 and  2000,  the  deferred  tax  asset  related  to the
   Company's net  operating  loss  carryforward  is fully  reserved.  Due to the
   provisions of Internal  Revenue Code Section 338, the Company may have no net
   operating loss carryforwards  available to offset financial  statement or tax
   return  taxable  income in future  periods as a result of a change in control
   involving  50  percentage  points  or  more  of the  issued  and  outstanding
   securities of the Company.

3. Income (Loss) per share
   -----------------------

   Basic earnings (loss) per share is computed by dividing the net income (loss)
   by the  weighted-average  number of shares of common  stock and common  stock
   equivalents  (primarily  outstanding  options  and  warrants).  Common  stock
   equivalents  represent  the  dilutive  effect of the assumed  exercise of the
   outstanding stock options and warrants,  using the treasury stock method. The
   calculation of fully diluted  earnings  (loss) per share assumes the dilutive
   effect of the  exercise of  outstanding  options  and  warrants at either the
   beginning  of the  respective  period  presented  or the  date  of  issuance,
   whichever is later. As of March 31, 2001 and 2000, respectively,  the Company
   has no outstanding  stock warrants,  options or convertible  securities which
   could  be  considered  as  dilutive  for  purposes  of  the  loss  per  share
   calculation.


Note C - Common Stock Transactions

On December 26, 2000, the Company cancelled an aggregate total of 833,485 shares
of its issued and outstanding common stock.  Current management,  upon extensive
research  into  transactions  approved  by former  officers  and or  controlling
shareholders,  determined  that all of such shares had been  issued  improperly,
inasmuch  as  no  corporate  authorization  of  the  issuances  existed  and  no
consideration was received by the Company for such shares.

Specifically, the cancellations were as follows:

      400,000 shares were purchased by the current  majority  stockholder from a
      former  officer of the  Company  for a cash  consideration  of $15,000 and
      returned to the Company's  treasury with no consideration  received by the
      majority stockholder.

      403,485 shares issued to former officers, directors and individuals. These
      shares were issued  improperly  as (A) at the time of such  issuance,  the
      corporate  charter of the Company  had been  revoked by the  Secretary  of
      State  of  Florida  for  failure  to  make  required  filings  and  to pay
      associated fees and (B) no  consideration  was received by the Company for
      such shares. Many of the certificates representing these shares were never
      delivered and were in the possession of the transfer agent.

      30,000  shares  issued  to a  company  in  anticipation  of  fees  due for
      investment banking activities.  These shares were issued improperly as (A)
      there was no action by the Company's  Board of Directors  authorizing  the
      issuance of any of such shares, and (2) at the time of such issuance,  the
      corporate  charter of the Company  had been  revoked by the  Secretary  of
      State  of  Florida  for  failure  to  make  required  filings  and  to pay
      associated fees.

                                                                               8


<PAGE>

                         Eldorado Financial Group, Inc.

                    Notes to Financial Statements - Continued


Note C - Common Stock Transactions - Continued

As a result of the December 2000 cancellation of these 833,485 shares of Company
common stock, the Company currently has 9,166,515 shares outstanding.

The effect in the accompanying financial statements was to restate the par value
of the  issued  and  outstanding  shares  with  a  corresponding  offset  to the
additional paid-in capital account as of the date of cancellation.  There was no
impact on the earnings of the Company as a result of this event.






                (Remainder of this page left blank intentionally)

                                                                               9






<PAGE>

Part I - Item 2

Management's  Discussion  and  Analysis of  Financial  Condition  and Results of
Operations

(1)   Caution Regarding Forward-Looking Information

This  quarterly   report  contains   certain   forward-looking   statements  and
information relating to the Company that are based on the beliefs of the Company
or management as well as assumptions made by and information currently available
to  the  Company  or  management.   When  used  in  this  document,   the  words
"anticipate,"   "believe,"   "estimate,"   "expect"  and  "intend"  and  similar
expressions,  as they relate to the Company or its  management,  are intended to
identify forward-looking statements. Such statements reflect the current view of
the  Company   regarding  future  events  and  are  subject  to  certain  risks,
uncertainties  and  assumptions,  including the risks and  uncertainties  noted.
Should  one or more of  these  risks or  uncertainties  materialize,  or  should
underlying assumptions prove incorrect,  actual results may vary materially from
those  described  herein  as  anticipated,   believed,  estimated,  expected  or
intended. In each instance,  forward-looking information should be considered in
light of the accompanying meaningful cautionary statements herein.

(2)   General comments

Eldorado  Financial Group, Inc. (Company) was incorporated under the laws of the
State of Florida on February 26, 1980 as Eldorado Gold & Exploration, Inc.

The Company has had no operations,  assets or liabilities  since its fiscal year
ended December 31, 1989.  Accordingly,  the Company is dependent upon management
and/or  significant  shareholders  to  provide  sufficient  working  capital  to
preserve the integrity of the corporate entity at this time. It is the intent of
management and significant  shareholders to provide  sufficient  working capital
necessary to support and preserve the integrity of the corporate entity.

(3)   Results of Operations, Liquidity and Capital Resources

The  Company  intends  to  continue  its plan of  seeking a  suitable  merger or
acquisition candidate.  In order to do so, it will require additional capital to
pay ongoing expenses,  including particularly legal and accounting fees incurred
in conjunction with preparation and filing of various required  periodic reports
to the U. S. Securities and Exchange Commission.

The Company has engaged in no significant  operations other than  organizational
activities  and  preparation  for  registration  of  its  securities  under  the
Securities Exchange Act of 1934, as amended, since August 31, 1989.

For the three  months ended March 31, 2001 and 2000,  respectively,  the Company
incurred net  operating  losses as a result of expenses  principally  associated
with registration and compliance with reporting obligations under The Securities
Exchange Act of 1934,  and other  administrative  expenses  associated  with the
maintenance of the Company's issued and outstanding  stock records.  The Company
anticipates  that until a business  combination is completed with an acquisition
candidate,  it will not  generate  revenues.  The Company  may also  continue to
operate at a loss after  completing a business  combination,  depending upon the
performance of the acquired business.

It  is  the  intent  of  management  and  significant  stockholders  to  provide
sufficient  working  capital to preserve the integrity of the corporate  entity,
however,  there are no commitments to provide additional funds have been made by
management  or other  stockholders,  and the  Company  has no plans,  proposals,
arrangements  or  understandings  with  respect  to  the  sale  or  issuance  of
additional  securities  prior  to  the  location  of  a  merger  or  acquisition
candidate. Accordingly, there can be no assurance that any additional funds will
be available to the Company to allow it to cover its  expenses.  Notwithstanding
the forgoing,  to the extent that  additional  funds are  required,  the Company
anticipates  receiving  such  funds in the  form of  advancements  from  current
shareholders  without  issuance of  additional  shares or other  securities,  or
through the private  placement of  restricted  securities  rather than through a
public offering.  The Company does not currently contemplate making a Regulation
S offering.

Regardless of whether the  Company's  cash assets prove to be inadequate to meet
the Company's  operational needs, the Company might seek to compensate providers
of services by issuances of stock in lieu of cash.

                                                                              10

<PAGE>

Year 2000 Compliance Issues

None of the Company's information systems or non-information  technology systems
were  affected  by the  passage  into the year  2000.  Nevertheless,  we have no
assurance that we will not experience  isolated  system  failures as a result of
customer or third party technical problems.


Part II - Other Information

Item 1 - Legal Proceedings

   None

Item 2 - Changes in Securities

   None

Item 3 - Defaults on Senior Securities

   None

Item 4 - Submission of Matters to a Vote of Security Holders

   The Company has held no regularly  scheduled,  called or special  meetings of
   shareholders during the reporting period.

Item 5 - Other Information

   None

Item 6 - Exhibits and Reports on Form 8-K

   Exhibits - None
   Reports on Form 8-K - None

--------------------------------------------------------------------------------


                                   SIGNATURES

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

                                       Eldorado Financial Group, Inc.


April    16   , 2001                    /s/ Glenn A Little
      --------                         --------------------------------
                                                        Glenn A. Little
                                                President, Director and
                                                Chief Financial Officer



                                                                              11