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, 1997 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)

          240 Clarkson Avenue, Brooklyn, New York 11226
                                                                  
(Address of Principal Executive Office)           (Zip Code)

                          (718)469-3132
                                                                  
      (Registrant's Telephone Number, Including Area Code)


                                                                  
      (Former Name, Former Address and Former Fiscal Year,
                  If Changed Since Last Report)

     Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities 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.  248,461,935
                              10Q-1

















                     DAINE INDUSTRIES, INC.

                      FINANCIAL STATEMENTS

                         MARCH 31, 1997








                            I N D E X





                                                            Page


INDEPENDENT ACCOUNTANTS' REVIEW REPORT                        1


CONSOLIDATED BALANCE SHEETS - ASSETS                          2


CONSOLIDATED BALANCE SHEETS
  - LIABILITIES AND SHAREHOLDERS' EQUITY                      3


CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY               4


CONSOLIDATED STATEMENTS OF OPERATIONS                        5-6


CONSOLIDATED STATEMENTS OF CASH FLOWS                         7


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS               8-11








             INDEPENDENT ACCOUNTANTS' REVIEW REPORT



To the Board of Directors and Shareholders
DAINE INDUSTRIES, INC.
Brooklyn, New York

We have reviewed the accompanying consolidated balance sheets of
DAINE INDUSTRIES, INC. as of March 31, 1997 and the related
consolidated statements of operations, shareholders' equity and
cash flows for the nine month periods ended March 31, 1997 and
1996, in accordance with standards established by the American
Institute of Certified Public Accountants.  All information
included in these financial statements is the representation of
management of DAINE INDUSTRIES, INC.

A review of interim financial information consists principally of
obtaining an understanding of the system for the preparation of
interim financial information, applying analytical review
procedures to financial data, and making inquiries of persons
responsible for financial and accounting matters.  It is
substantially less in scope than an examination in accordance with
generally accepted auditing standards, the objective of which is
the expression of 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 consolidated financial statements for
them to be in conformity with generally accepted accounting
principles.

We have previously audited, in accordance with generally accepted
auditing standards, the consolidated balance sheet as of June 30,
1996, and the related consolidated statements of operations,
shareholders' equity and cash flows for the year then ended (not
presented herein); and in our report dated August 7, 1996, we
expressed an unqualified opinion on those consolidated financial
statements.  In our opinion, the information set forth in the
accompanying consolidated balance sheet as of June 30, 1996 is
fairly stated in all material respects in relation to the
consolidated balance sheet from which it has been derived.


                                   GREENBERG & COMPANY LLC

Springfield, New Jersey
April 24, 1997

                                                    Page 1 of 11

                        DAINE INDUSTRIES, INC.
                      CONSOLIDATED BALANCE SHEETS



                              A S S E T S



                                      March 31, 1997
                                       (Unaudited)     June 30, 1996


CURRENT ASSETS
  Cash and Cash Equivalents             $  284,197       $  287,482
  Accounts Receivable                      356,167          519,935
  Inventory                                805,393          903,353
  Prepaid Expenses                          22,016           38,237
  Total Current Assets                   1,467,773        1,749,007

FIXED ASSETS, At Cost
  Machinery and Equipment                  389,421          384,873
  Leasehold Improvements                     9,787            9,787
  Less:  Accumulated Depreciation       
    and Amortization                      (204,287)        (168,542)
                                           194,921          226,118

OTHER ASSETS
  Deposits                                   6,100            6,100


TOTAL ASSETS                            $1,668,794       $1,981,225





















The accompanying notes are an integral part of these financial
statements.


                                                         Page 2 of 11

                        DAINE INDUSTRIES, INC.
                      CONSOLIDATED BALANCE SHEETS



  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


                                      March 31, 1997
                                       (Unaudited)     June 30, 1996



CURRENT LIABILITIES
  Accounts Payable                      $   59,771       $  335,486
  Accured Expenses                          43,393              -0-
    Total Current Liabilities              103,164          335,486

OTHER LIABILITIES
  Deferred Income Tax Liability 
    (Note 5)                                16,852           16,852

TOTAL LIABILITIES                          120,016          352,338

COMMITMENTS AND CONTINGENCIES
  (Note 4)

SHAREHOLDERS' EQUITY
  Common Stock (Par Value
    $.00001) 350,000,000 shares
    authorized, 248,461,935
    shares issued and outstanding            2,485            2,485
  Paid-In Capital                        1,441,597        1,441,597
  Retained Earnings                        104,696          184,805

TOTAL SHAREHOLDERS' EQUITY               1,548,778        1,628,887


TOTAL LIABILITIES AND
  SHAREHOLDERS' EQUITY                  $1,668,794       $1,981,225













The accompanying notes are an integral part of these financial
statements.


                                                       Page 3 of 11

                          DAINE INDUSTRIES, INC.
              CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
               For The Period July 1, 1994 to March 31, 1997



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



BALANCES AT
JULY 31, 1994        248,461,935  $2,485  $1,441,594  $101,141  $1,545,223

Net Income for
the Year Ended
June 30, 1995                                          114,996     114,996

BALANCES AT
JUNE 30, 1995        248,461,935   2,485   1,441,594   216,137   1,660,219

Net Income (Loss)
for the Year Ended
June 30, 1996                                          (31,332)    (31,332)

BALANCES AT
JUNE 30, 1996
(Audited)            248,461,935   2,485   1,441,594   184,805   1,628,887

Net Income (Loss)
for the Nine
Months Ended
March 31, 1997                                         (80,109)    (80,109)



BALANCES AT
MARCH 31, 1997
(UNAUDITED)          248,461,935  $2,485  $1,441,594  $104,696  $1,548,778













The accompanying notes are an integral part of these financial statements.


                                                                Page 4 of 11

                        DAINE INDUSTRIES, INC.
                 CONSOLIDATED STATEMENTS OF OPERATIONS
                              (Unaudited)


                                        For The Three Months Ended
                                                  March 31,     
                                             1997        1996   


REVENUES
  Sales - Net of Returns
    and Allowances                        $  231,512   $  315,964

COST OF GOODS SOLD
  Beginning Inventory                        931,912    1,120,603
  Purchase and Freight                        16,140       63,097
  Direct Labor                                25,189       41,655
                                             973,241    1,225,355
  Less:  Inventory - End of Period          (805,393)    (997,602)
  Cost of Goods Sold                         167,848      227,753

  GROSS MARGIN                                63,664       88,211

  INTEREST INCOME                              2,155        2,181

  SELLING, GENERAL AND ADMINISTRATIVE
  EXPENSES                                  (108,469)    (111,878)

  DEPRECIATION AND AMORTIZATION
  EXPENSE                                    (11,914)       9,934

INCOME (LOSS) BEFORE INCOME TAXES            (54,564)     (31,420)

Income Tax Expense (Benefit)(Note 5)          (1,799)     (20,401)


NET INCOME (LOSS)                         $  (56,363)  $  (11,019)


Earnings Per Share                           NIL          NIL   


Weighted Average Number of Shares of 
  Common Stock Outstanding              248,461,935  248,461,935









Subject to the comments contained in the Accountants' Review Report.


                                                          Page 5 of 11

                        DAINE INDUSTRIES, INC.
                 CONSOLIDATED STATEMENTS OF OPERATIONS
                              (Unaudited)


                                        For The Nine Months Ended
                                                  March 31,     
                                             1997        1996   


REVENUES
  Sales - Net of Returns
    and Allowances                        $1,129,688   $1,034,274

COST OF GOODS SOLD
  Beginning Inventory                        903,354      807,279
  Purchase and Freight                       539,927      778,871
  Direct Labor                               168,668      149,955
                                           1,611,949    1,736,105
  Less:  Inventory - End of Period          (805,393)    (997,602)
  Cost of Goods Sold                         806,556      738,503

  GROSS MARGIN                               323,132      295,771

  INTEREST INCOME                              6,927        8,610

  SELLING, GENERAL AND ADMINISTRATIVE
  EXPENSES                                  (372,403)    (307,355)

  DEPRECIATION AND AMORTIZATION
  EXPENSE                                    (35,745)     (29,806)

INCOME (LOSS) BEFORE INCOME TAXES            (78,089)     (32,780)

Income Tax Expense (Benefit)(Note 5)           2,020      (16,206)


NET INCOME (LOSS)                         $  (80,109)  $  (16,574)


Earnings Per Share                           NIL          NIL   


Weighted Average Number of Shares of 
  Common Stock Outstanding              248,461,935  248,461,935









Subject to the comments contained in the Accountants' Review Report.


                                                          Page 6 of 11

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

                                         For The Nine Months Ended
                                                  March 31,     
                                               1997       1996  

CASH FLOWS FROM OPERATING ACTIVITIES
 Net Income (Loss)                           $(80,109)  $(16,574)
  Adjustment to Reconcile Net Income to
  Net Cash Provided By (Used In)
  Operating Activities:
   Depreciation and Amortization Expense       35,745     29,806
   Change in Assets and Liabilities:
    Decrease (Increase) in Accounts
      Receivable                              163,768    449,732
    Decrease (Increase) in Inventory           97,960   (190,323)
    Decrease (Increase) in Prepaid Expenses    16,221    (22,536)
    Increase (Decrease) in Accounts Payable  (275,715)  (323,224)
    Increase (Decrease) in Accrued Expenses    43,393    (87,568)


 Net Cash Provided By (Used In) Operating
  Activities                                    1,263   (160,687)

CASH FLOWS FROM INVESTING ACTIVITIES
 Capital Expenditures                          (4,548)   (16,837)

 Net Cash (Used In) Investing Activities       (4,548)   (16,837)

CASH FLOWS FROM FINANCING ACTIVITIES
 Net Borrowings Under (Repayment of)
   Short-Term and Long-Term Debt                  -0-        -0-

 Net Cash Provided By (Used In)
    Financing Activities                          -0-        -0-

Net Increase (Decrease) in Cash and
 Cash Equivalents                              (3,285)  (177,524)

Cash and Cash Equivalents at
  Beginning of Period                         287,482    450,718

CASH AND CASH EQUIVALENTS AT
END OF PERIOD                                $284,197   $273,194


Supplemental Disclosures of Cash Flow Information:

  Cash Paid During the Period for:
     Interest                                $    -0-   $    -0-
     Taxes                                   $  2,020   $ 52,519




Subject to the comments contained in the Accountants' Review Report.


                                                        Page 7 of 11

                     DAINE INDUSTRIES, INC.
         NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
            FOR THE NINE MONTHS ENDED MARCH 31, 1997
                           (UNAUDITED)

NOTE 1:  ORGANIZATION AND NATURE OF OPERATIONS

         Daine Industries, Inc. (Daine) is a Delaware corporation. 
         Daine owns 100% of the stock of Lite King Corp. (LKC) a
         New York corporation.  Daine's principal purpose is to
         hold the stock of LKC.  LKC's principal business is the 
         manufacture and assembly of electrical wiring devices,
         cord sets and sockets.  LKC's customers consists 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.

NOTE 2:  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         BASIS OF PRESENTATION

         The accounts of the Company and its consolidated 100%
         owned subsidiary, Lite King Corporation, are included in
         the consolidated financial statements.  All intercompany
         balances and transactions have been eliminated.

         CASH AND CASH EQUIVALENTS

         Cash equivalents consist of highly liquid, short-term
         investments with maturities of 90 days or less.
         
         ACCOUNTS RECEIVABLE

         Accounts receivable are judged as to collectibility by
         management and an allowance for bad debts is established
         as necessary.  As of each balance sheet date, no reserve
         was considered necessary.

         INVENTORY

         Inventories are stated at the lower of cost or market. 
         Cost is determined by the first-in, first-out method.
         Inventories consist of:

                                         3/31/97    6/30/96
               Raw Materials            $526,619   $766,527
               Work-in-Process           149,799     27,412
               Finished Goods            128,975    109,414
                                        $805,393   $903,353

          MAJOR CUSTOMERS

          During the periods ended March 31, 1997 and 1996, three
          customers accounted for approximately 48%, 23%, 16%, and
          41%, 30%, 11%, respectively, of total revenues.  The loss
          of any one of these customers could have a material
          adverse effect on the financial condition of the company.

                                                    Page 8 of 11

                     DAINE INDUSTRIES, INC.
         NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
            FOR THE NINE MONTHS ENDED MARCH 31, 1997
                           (UNAUDITED)
                           (Continued)

          PROPERTY AND EQUIPMENT

          Renewals and betterments are capitalized; maintenance and
          repairs are expensed as incurred.

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


          REVENUE RECOGNITION POLICY

          The company recognizes sales, for both financial
          statement purposes and for tax purposes, when the
          products are shipped to customers.

          PREPARATION OF FINANCIAL STATEMENTS

          Preparation of the Company's financial statements in
          conformity with generally accepted accounting principles
          requires the use of management's estimates, primarily
          related to collectibility of receivables and depreciable
          lives of furniture and equipment.  Accordingly, actual
          results could differ from those estimates.

NOTE 3:   ACQUISITION

          On February 26, 1990 Daine Industries, Inc. purchased the
          assets of Lite King Corporation.  The purchase price was
          $738,079, which was paid $663,079 in cash and $75,000 in
          a note.

          The acquisition was accounted for by the purchase method
          of accounting and, accordingly, the purchase price has
          been allocated to assets acquired based on their fair
          market value at the date of acquisition.

NOTE 4:   COMMITMENTS AND CONTINGENCIES

          The company is currently in a lease for office and
          factory space requiring minimum annual base rental
          payments for the fiscal periods shown as follows:

                         1997      $ 54,667
                         1998        58,000
                         1999        58,333
                         2000        60,333
                         2001        48,500
                         Total     $279,833

          In addition to annual base rental payments, the company
          must pay an annual escalation for real estate taxes.  
 
          

                                                    Page 9 of 11

                     DAINE INDUSTRIES, INC.
         NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
            FOR THE NINE MONTHS ENDED MARCH 31, 1997
                           (UNAUDITED)
                           (Continued)

          Certain officers and directors of the company have been
          included as defendants in a class action entitled "Barker
          et al v. Power Securities Corp., et al" in the Western
          District of New York, which action alleges violations of
          the securities laws, in trading certain securities
          including those of the company and its affiliated
          company, Davin Enterprises Inc., by all of the
          defendants.  Certain officers and directors of the
          company, who are also officers and directors of Davin
          Enterprises Inc., deny the allegations and believe the
          suit to be without merit.  The alleged violations refer
          to Section 10b and Rule 10b-5 of the Securities and
          Exchange Act of 1934.

          The company has undertaken to advance any expenses
          necessary and incurred by the officers and directors in
          the litigation subject to an undertaking by such officer
          and director to repay the advances if it be ultimately
          determined that the officer or director is not entitled
          to be indemnified.  At this date, expenses are not
          material.  In the event that the plaintiffs were to
          prevail against the officers and directors and a judgment
          was issued against them, this may have a material adverse
          effect on the company's future financial condition. 
          Management feels that an estimate of the possible range
          of loss cannot be made at this time.

NOTE 5:   INCOME TAXES

          Income taxes are accrued at the statutory U.S. and state
          income tax rates.  Beginning with the year ended June 30,
          1993, the company adopted FAS 109 for reporting income
          taxes.  This did not have a material effect on the
          financial statements.

          Income tax expense is principally due to state and local
          income taxes based upon capital.  Deferred tax
          liabilities relate to depreciation timing differences.

                                                March 31,   
                                             1997     1996  

          Current tax expense:
            Income tax at statutory rates   $2,020  $  3,744
            Tax (benefit) - NOL carryback      -0-   (19,950)

          Total Tax Expense (Benefit)       $2,020  $(16,206)








                                                   Page 10 of 11

                     DAINE INDUSTRIES, INC.
         NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
            FOR THE NINE MONTHS ENDED MARCH 31, 1997
                           (UNAUDITED)
                           (Continued)


NOTE 6:   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 7:   INTERIM FINANCIAL REPORTING

          The unaudited financial statements of the company for the
          period July 1, 1996 to March 31, 1997 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.





































                                                   Page 11 of 11
                 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 engaged in the manufacture and
assembly of wiring devices.  On February 26, 1990, Daine
Industries, Inc. purchased the assets of Lite King Corp.  The
purchase price was $738,079, which was paid $663,079 in cash and
$75,000 in a note.

     Lite King's facilities consist of approximately 16,000 square
feet of office and factory space with annual lease payments of
$58,000.  Lite King's work force fluctuates during the year, from
about 10-35 employees, all except three which were engaged in
manufacturing and assembly activities.

     Lite King Corporation, the Registrant's wholly owned
subsidiary, during the nine months ended March 31, 1997, generated
revenues of $1,129,688.  During the nine months ended March 31,
1996 the Registrant generated revenues of $1,034,274.  During the
nine months ended March 31, 1997, the Registrant had a net loss of
$80,109 as compared with a net loss of $16,574 for the nine months
ended March 31, 1996.  The loss can be attributed primarily to
higher general and administrative expenses, especially additional
rent expense due to real estate taxes in accordance with the lease
and added Underwriters Laboratories' (UL) expenses in connection
with registration of new products.

     The Registrant is experiencing added competition from firms
with production facilities in China, Mexico and third world nations
which resulted in lower gross margins.  The Registrant is at a
disadvantage in that firms based in the above listed nations have
labor rates considerably lower than the Registrant's.

     As of March 31, 1997, the Registrant had total assets of
$1,668,794, current assets of $1,467,773, fixed assets of $194,921,
other assets of $6,100, current liabilities of $103,164, and total
shareholders' equity of $1,548,778.  At June 30, 1996, total assets
amounted to $1,981,225, current assets of $1,749,007, fixed assets
of $226,118, other assets of $6,100, current liabilities of
$335,486, other liabilities of $16,852 and shareholders' equity of
$1,628,887.

     The Registrant has introduced several new products for sale
directly to the end user as compared with current sales to original
equipment manufacturers.  These products have been sold to craft
stores and as replacement items for blow molded novelty products. 
Management does not anticipate sales of these new products to have
a material effect on fiscal year 1998 revenues or Company
profitability.

     Lite King's main customer base are manufacturers of Christmas,
Easter and Halloween products.  Management considers its principal
business to be seasonal in nature with sales usually at its lowest
point during the quarter ended March 31st, with sales rising
steadily during the June, September quarters and declining in the
December quarter.  The Registrant is experiencing lower gross
profit margins because of the introduction of some new components
used on some products, mandated by Underwriters Laboratories Inc.,
and added competition from firms with manufacturing facilities in
China.  For the three months ended March 31, 1997, Lite King's
three largest customers accounted for about 87% of its total sales. 
The loss of any of these customers could have a material adverse
effect on the Registrant's operations.

     The cash and cash equivalents balances of the Company as of
March 31, 1997 and June 30, 1996 were $284,197 and $287,482
respectively.  The Company expects that its current balances of
cash and cash equivalents will be sufficient to meet its minimum
planned capital and liquidity needs for the next year.

     The Company does not believe that the impact of inflation on
its activities is significant.  The Company is directing its
marketing effort to reach out to new potential customers in non-
related fields.  No assurance can be given that such marketing
activities will result in the Company adding new customers. 
Management sees added operating problems in fiscal year 1997 (year
ended June 30, 1997) as a result of new regulations being proposed
by Underwriter Laboratories Inc. (UL) for Christmas and other
seasonal products.  These new UL regulations will add additional
costs to the Company's products and unless the Company is able to
pass along these additional costs, profit margins for the Company's
products in fiscal year 1997 will be lower.  The Company also needs
to meet these new requirements.  Failure to meet these requirements
could have an adverse material effect on the Company's future
operations.

     At the date of this report, the Company has received approvals
from U.L. for its sockets (#518 and #418) but is still waiting for
an approval of its wiring harnesses utilizing newly approved fused
plugs.  Management has learned that a new fused plug for outdoor
use has been approved by U.L. at the end of April 1997 however
commercial quantities of these plugs are not expected to be
available to the Company and other firms until the last quarter of
1997.  The Company and its blow molded customers will be requesting
a waiver from U.L. to use a 1996 U.L. listed fused plug currently
on the market for the remainder of 1997.  No assurance can be given
that such a waiver will be granted.  Management cannot yet
determine what will occur if U.L. does not grant the requested
waiver.

                  PART II.  OTHER INFORMATION:


Item 1.  Legal Proceedings.

         See 9/30/89 Form 10-Q Re: "Barker et. al v. Power
         Securities Corp., at al".

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 and Chief Executive Officer
                      Dated:  May 12, 1997