SECURITIES AND EXCHANGE COMMISSION
			Washington, D.C. 20549

			FORM 10-Q
(Mark One)
/X/ Quarterly report pursuant to Section 13 or 15(d) of the
Securities Act of 1934

For the quarterly period ended March 31, 2001 or

/ / Transition report pursuant to Section 13 or 15(d) of the
Securities Act of 1934

For the transition period from               to

Commission file number 0-17330

		DAINE INDUSTRIES, INC.

	(Exact Name of Registrant as Specified in its Charter)

Delaware				11-2881685

(State or other jurisdiction of		(I.R.S. Employer
Incorporation or Organization)		  Identification Number)

	P.O. Box 940007, Belle Harbor, New York 11694

(Address of Principal Executive Office)			(Zip Code)

			(718)318-0994

	(Registrant's Telephone Number, Including Area Code)

	240 Clarkson Avenue, Brooklyn, New York 11226

		(Registrant's Former Address)

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 and Exchange Act of 1934 during the preceding twelve
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 ninety days.
Yes / X /  No /  /

	APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
	DURING THE PRECEDING FIVE YEARS

Indicate by check mark whether the registrant has filed all
documents and reports required to be filed by Section 12, 13 or
15(d) of the Securities Exchange Act of 1934 subsequent to the
distribution of securities under a plan confirmed by a court.
Yes /  /   No /  /

	APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable
date.  1,242,374

			10Q-1




















			DAINE INDUSTRIES, INC.

			FINANCIAL STATEMENTS

		            MARCH 31, 2001











			I N D E X





					Page


BALANCE SHEETS				 1


STATEMENTS OF SHAREHOLDERS' EQUITY	 2


STATEMENTS OF OPERATIONS	 	3-4


STATEMENTS OF CASH FLOWS		 5


NOTES TO THE FINANCIAL STATEMENTS	 6-8


























		   DAINE INDUSTRIES, INC.
			BALANCE SHEETS


					March 31, 2001
 					(Unaudited)  	June 30, 2000

	A S S E T S

CURRENT ASSETS
Cash and Cash Equivalents		$   68,380	$   86,766
Total Current Assets	    	   	    68,380	    86,766

FIXED ASSETS, At Cost
Machinery and Equipment	    	            31,032	    31,032
Less:  Accumulated Depreciation	           (31,032)	   (31,032)
		                               -0-	       -0-


TOTAL ASSETS				$   68,380	$   86,766


	L I A B I L I T I E S  A N D  S H A R E H O L D E R S'  E Q U I T Y


CURRENT LIABILITIES
Accounts Payable & Accrued Expenses 	$    4,500	$    6,000
  Total Current Liabilities	    	     4,500	     6,000

TOTAL LIABILITIES	                     4,500	     6,000

SHAREHOLDERS' EQUITY
Common Stock (Par Value
  $.00001) 50,000,000 shares
  authorized, 1,242,374
  shares issued and outstanding	     	        12	        12
Paid-In Capital			         1,444,070	 1,444,070
Retained Earnings (Deficit)	        (1,380,202)	(1,363,316)

TOTAL SHAREHOLDERS' EQUITY	            63,880	    80,766


TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY	                $   68,380	$   86,766









See notes to the financial statements.


							Page 1 of 8


		DAINE INDUSTRIES, INC.
         STATEMENTS OF SHAREHOLDERS' EQUITY
     For The Period July 1, 1999 to March 31, 2001



 		      Common Stock  			Total
		 Number  	 $.00001		Retained	Share-
		   of      	 Par	Paid-In		Earnings	holders'
		 Shares   	 Value	Capital		(Deficit)	Equity


BALANCES AT
JULY 1, 1999	1,242,374	 $12	$1,444,070	$(1,330,794)	$113,288

Net Income(Loss)
for the Year Ended
June 30, 2000	         	    	          	    (32,522)	 (32,522)

BALANCES AT
JUNE 30, 2000	1,242,374	  12	 1,444,070	 (1,363,316)	  80,766

Net Income(Loss)
for the nine
months ended
March 31, 2001	         	    	          	    (16,886)	 (16,886)


BALANCES AT
MARCH 31, 2001
(Unaudited)	1,242,374	 $12	$1,444,070	$(1,380,202)	$ 63,880





















See notes to the financial statements.



								Page 2 of 8


			DAINE INDUSTRIES, INC.
		       STATEMENTS OF OPERATIONS
				(Unaudited)


	                                    For The Three Months Ended
 						     March 31,
						  2001     	 2000


Interest Income					$   809	$  	   1,032

General and Administrative Expenses	 	 (7,138)	 (12,419)

Depreciation and Amortization Expense	   	    -0- 	  (1,330)

Income (Loss) Before Income Taxes	 	 (6,329)	 (12,717)

Income Tax Expense (benefit)	    		    100     	    (460)


NET INCOME (LOSS)				$(6,429)	$(12,257)


Basic and Diluted Earnings (Loss)
Per Share	  				  $(.01)	   $(.01)

Weighted Average Number of
Common Stock Outstanding	 		1,242,374	  1,242,374
























See notes to the financial statements.


 						Page 3 of 8


			DAINE INDUSTRIES, INC.
		      STATEMENTS OF OPERATIONS
	                     (Unaudited)


                                     For The Nine Months Ended
    					 	 March 31,
 					   2001  	  2000


Interest Income				$  2,965	$  3,275

General and Administrative Expenses	 (19,296)	 (20,166)

Depreciation and Amortization Expense	     -0- 	  (3,990)

Income (Loss) Before Income Taxes	 (16,331)	 (20,881)

Income Tax Expense	    		     555 	      41


NET INCOME (LOSS)			$(16,886)	$(20,922)


Basic and Diluted Earnings (Loss)
Per Share	 			  $(.01)	   $(.02)

Weighted Average Number of
Common Stock Outstanding	        1,242,374	  1,242,374
























See notes to the financial statements.


						 Page 4 of 8


			DAINE INDUSTRIES, INC.
			STATEMENTS OF CASH FLOWS
				(Unaudited)


                                          For The Nine Months Ended
    						  March 31,
 					     2001  	  2000

CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)			$(16,886)	$(20,922)
  Adjustment to Reconcile Net Income to
Net Cash Provided By (Used In)
Operating Activities:
Depreciation and Amortization Expense	     -0-	   3,990
Change in Assets and Liabilities:
Increase (Decrease) in Accounts Payable
& Accrued Expenses			  (1,500)	  (4,000)

Net Cash Provided By (Used In) Operating
Activities				 (18,386)	 (20,932)

Cash and Cash Equivalents at
  Beginning of Period	 		  86,766	 111,126

CASH AND CASH EQUIVALENTS AT
END OF PERIOD				$ 68,380	$ 90,194


Supplemental Disclosures of Cash Flow Information:

  Cash Paid During the Period for:
     Interest				 $   -0-	$    -0-
     Taxes				 $   555	$    501




















See notes to the financial statements.

       						Page 5 of 8


	DAINE INDUSTRIES, INC.
	NOTES TO THE FINANCIAL STATEMENTS
	FOR THE NINE MONTHS ENDED MARCH 31, 2001
	(Unaudited)

NOTE 1:	ORGANIZATION AND NATURE OF OPERATIONS

Daine Industries, Inc. (Daine) is a Delaware corporation.
Daine owned 100% of the stock of Lite King Corp. (LKC) a New
York corporation through November 19, 1998.  Daine's principal
purpose was to acquire and merge with an operating company.
LKC's principal business is the manufacture and assembly of
electrical wiring devices, cord sets and sockets.  LKC's
customers consist of manufacturers of lamps, chandeliers,
Christmas and Halloween illuminated decorations, novelties,
point of purchase displays, signs, and other electrical
specialties.  The customers are located throughout North
America.

On November 19, 1998, Daine filed a Form 10-SB to spin-off Lite
King Corp.'s shares of common stock to its shareholders on a
pro rata basis.  The Registrant owned all of the 2,484,620
outstanding shares of Lite King which was distributed to its
shareholders as of November 30, 1998 on the basis of one share
of Lite King for each 100 shares of Daine held.  The
distribution of stock certificates of Lite King was made in May
1999.

NOTE 2:	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

CASH AND CASH EQUIVALENTS

Cash equivalents consist of highly liquid, short-term
investments with maturities of 90 days or less.  The carrying
amount reported in the accompanying balance sheets approximates
fair value.

PROPERTY AND EQUIPMENT, At Cost

Depreciation is calculated using the straight line method over
the asset's estimated useful life, which generally approximates
10 years.


ESTIMATES IN FINANCIAL STATEMENTS

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 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.




   						   Page 6 of 8


	DAINE INDUSTRIES, INC.
	NOTES TO THE FINANCIAL STATEMENTS
	FOR THE NINE MONTHS ENDED MARCH 31, 2001
	(Unaudited)
	(Continued)

INCOME TAXES

The Company accounts for income taxes in accordance with
Statement of Financial Accounting Standards ("SFAS") No. 109,
"Accounting for Income Taxes."  SFAS 109 has as its basic
objective the recognition of current and deferred income tax
assets and liabilities based upon all events that have been
recognized in the financial statements as measured by the
provisions of the enacted tax laws.

Valuation allowances are established when necessary to reduce
deferred tax assets to the estimated amount to be realized.
Income tax expense represents the tax payable for the current
period and the change during the period in the deferred tax
assets and liabilities.


NOTE 3:	INCOME TAXES

Income taxes are accrued at the statutory U.S. and state income
tax rates.

Current income tax expense for March 31, 2001 is principally
due to state and local income taxes based upon capital.
Deferred tax liabilities relate to operating loss carry
forwards.

     	  			 March 31,
				2001	2000
Current tax expense:
Income tax at statutory rates	$555	$41

Total Tax Expense		$555	$41

The tax effect of significant temporary differences, which
comprise the deferred tax assets and liabilities are as
follows:
			March 31	June 30
  			   2001 	  2000
  Deferred tax asset:
    Operating loss
    carryforward	 $41,095	$36,000
  Valuation allowance	 (41,095)	(36,000)
Net deferred tax asset	 $   -0-	$   -0-







					Page 7 of 8


	DAINE INDUSTRIES, INC.
	NOTES TO THE FINANCIAL STATEMENTS
	FOR THE NINE MONTHS ENDED MARCH 31, 2001
	(Unaudited)
	(Continued)

During the year ended June 30, 1999, Daine distributed the
stock of its subsidiary Lite King to Daine shareholders in a
tax free spinoff.  Daine has generated operating loss
carryforwards of approximately $106,900 which must be carried
forward for tax purposes until 2021.  The tax benefits
associated with these losses have been fully reserved in the
valuation allowance due to Daine's lack of operating
profitability.

NOTE 4:	POSTRETIREMENT EMPLOYEE BENEFITS

The company does not have a policy to cover employees for any
health care or other welfare benefits that are incurred after
employment (postretirement).  Therefore, no provision is
required under SFAS's 106 or 112.

NOTE 5:	INTERIM FINANCIAL REPORTING

The unaudited financial statements of the Company for the
period July 1, 2000 through March 31, 2001 have been prepared
by management from the books and records of the Company, and
reflect, in the opinion of management, all adjustments
necessary for a fair presentation of the financial position and
operations of the Company as of the period indicated herein,
and are of a normal recurring nature.

NOTE 6:	COMMON STOCK

On July 24, 2000 the Company effected a one (1) for two hundred
(200) reverse split of the Company's common stock and reduced
the number of authorized shares from 350,000,000 to 50,000,000.
 The effective date of the reverse split is July 24, 2000 and
all share and per share amounts are retroactively restated to
give effect for the reverse split within these financial
statements.

NOTE 7:  CONTINGENCIES

The Company as owner of a vehicle and the Company's
president, as driver are defendants in a lawsuit in the County of
Brooklyn, New York State seeking damages of $1,100,000 as a result
of an accident.  The Company has liability insurance in the amount
of $1,000,000.  The Company and its president have denied any and
all liability and are being defended by the insurance company.  The
Company expects the lawsuit to be dismissed or to be settled
within the policy limits.
















       						Page 8 of 8


Part 1.  Financial Information


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

Daine Industries, Inc. ("The Registrant") was incorporated on
September 24, 1987 and is currently seeking to acquire an operating
business.  From February 1990 until November 19, 1998 the Registrant
operated business of Lite King Corp. and currently is a public vehicle
to acquire an operating business.

On February 26, 1990, the Registrant acquired substantially all of
the assets (with the exception of the cash) and the business of Lite
King Corporation ("Lite King"), a manufacturer and assembler of wiring
devices, cord sets and sockets.  On November 19, 1998, the Registrant
filed a Form 10-SB to spin-off Lite King Corp's shares of common stock
to its shareholders on a pro rata basis.  The Registrant owned all of
the 2,484,620 outstanding shares of Lite King which was distributed to
its shareholders as of November 30, 1998 on the basis of one share of
Lite King for each 100 shares of pre-reverse split Daine held.  The
distribution of stock certificates of Lite King was made in May 1999.

Management of the Registrant believe the two companies as separate
entities may create additional value for the shareholders.  There is no
assurance of any trading market developing.  Management will attempt to
use the Registrant as a "shell" vehicle to acquire an operating
business.

During the nine months ended March 31, 2001, the Registrant's only
revenues consisted of interest income which amounted to $2,965.  Total
expenses amounted to $19,851, consisting of general and administrative
expenses (primarily legal and accounting fees) of $19,296 depreciation
and amortization expense of $-0- and income tax expense of $555,
resulting in a net loss of $16,886.

For the nine months ended March 31, 2000, the Registrant had a net
loss of $20,922.  The net loss of $20,922 was the result of interest
income of $3,275, general and administrative expenses (primarily legal
and accounting expenses) of $20,166, depreciation and amortization
expenses of $3,990, resulting in a loss of $20,922.

At March 31, 2001, the Registrant had total assets of $68,380,
consisting of current assets of $68,380 (cash and cash equivalents), and
fixed assets of $-0-.  At June 30, 2000, the Registrant had total assets
of $86,766, consisting of cash and cash equivalents (current assets) of
$86,766 and fixed assets of $-0-.

At March 31, 2001, the Registrant's total liabilities consisted of
accounts payable and accrued expenses of $4,500.  At June 30, 2000 total
liabilities amounted to $6,000.  Shareholders equity at March 31, 2001
amounted to $63,880 as compared with $80,766 as of June 30, 2000.



The Registrant is actively seeking candidates for either
acquisition or merger.  Presently, management is in discussions for a
potential merger.  No assurance can be given that such acquisition or
merger will occur in the near future.

	PART II.  OTHER INFORMATION:


Item 1.	Legal Proceedings.

	The Registrant as owner of a vehicle and the Registrant's
president, as driver are defendants in a lawsuit in the County of
Brooklyn, New York State seeking damages of $1,100,000 as a result
of an accident.  The Registrant has liability insurance in the amount
of $1,000,000.  The Registrant and its president have denied any and
all liability and are being defended by the insurance company.  The
Registrant expects the lawsuit to be dismissed or to be settled
within the policy limits.

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 Materially Important Events.  None.

Item 6.	Exhibits and Reports on Form 8-K.  None.



	SIGNATURES


Pursuant to the requirements of Section 13 or 15(d) of the
Securities Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly authorized.


                   By:  Arthur Seidenfeld
	                   President
	        Dated:    May 5, 2001