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 September 30, 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

                           SEPTEMBER 30, 1997









                                I N D E X





                                                                Page


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


CONSOLIDATED STATEMENTS OF CASH FLOWS                           6-7


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                 8-12






                     ACCOUNTANTS' REVIEW REPORT


To the Board of Directors and Shareholders
DAINE INDUSTRIES, INC.
Brooklyn, New York  11226

We have reviewed the accompanying consolidated balance sheet of DAINE
INDUSTRIES, INC. as of September 30, 1997 and the related consolidated
statements of operations, shareholders' equity and cash flows for the
three month periods ended September 30, 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, 1997,
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 July 31, 1997, 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, 1997 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
October 29, 1997

                                                    Page 1 of 12
                                   
                        DAINE INDUSTRIES, INC.
                      CONSOLIDATED BALANCE SHEETS



                              A S S E T S



                                      Sept. 30, 1997
                                       (Unaudited)     June 30, 1997


CURRENT ASSETS
  Cash and Cash Equivalents             $  772,157       $  468,991
  Accounts Receivable                      379,460          502,259
  Inventory                                551,127          607,127
  Prepaid Expenses                           7,844           10,851
  Total Current Assets                   1,710,588        1,589,228

FIXED ASSETS, At Cost
  Machinery and Equipment                  393,786          393,786
  Leasehold Improvements                     9,787            9,787
  Less:  Accumulated Depreciation       
    and Amortization                      (227,634)        (216,485)
                                           175,939          187,088

OTHER ASSETS
  Deposits                                   6,100            6,100


TOTAL ASSETS                            $1,892,627       $1,782,416

















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



                                                         Page 2 of 12
                         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


                                      Sept. 30, 1997
                                       (Unaudited)     June 30, 1997



CURRENT LIABILITIES
  Accounts Payable & Accrued Expenses   $  210,370       $  145,827
  Income tax payable                        15,564            1,573
  Total Current Liabilities                225,934          147,400

OTHER LIABILITIES
  Deferred Income Tax Liability
                                            15,038           15,038

TOTAL LIABILITIES                          240,972          162,438

COMMITMENTS AND CONTINGENCIES
  (Note 3)

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                        207,573          175,896

TOTAL SHAREHOLDERS' EQUITY               1,651,655        1,619,978


TOTAL LIABILITIES AND
  SHAREHOLDERS' EQUITY                  $1,892,627       $1,782,416













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


                                                       Page 3 of 12
                      DAINE INDUSTRIES, INC.
           CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
          For The Period July 1, 1996 to September 30, 1997



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


BALANCES AT
JULY 1, 1996      248,461,935  $2,485 $1,441,594 $184,805  $1,628,887

Net Income(Loss)
for the Year
Ended,
June 30, 1997                                      (8,909)     (8,909)
                     

BALANCES AT
JUNE 30, 1997
(Audited)         248,461,935   2,485  1,441,594  175,896   1,619,978

Net Income(Loss)
for the Three
Months Ended,
Sept. 30, 1997                                     31,677      31,677

BALANCES AT
SEPTEMBER 30, 1997
(UNAUDITED)       248,461,935  $2,485 $1,441,594 $207,573  $1,651,655
                     



















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

                                                      Page 4 of 12
                       DAINE INDUSTRIES, INC.
                CONSOLIDATED STATEMENTS OF OPERATIONS
                             (Unaudited)


                                        For The Three Months Ended
                                              September 30,     
                                            1997         1996   


REVENUES
  Sales - Net of Returns
    and Allowances                       $ 621,237    $  736,270
COST OF GOODS SOLD
  Beginning Inventory                      607,127       903,353
  Purchase and Freight                     285,899       504,264
  Direct Labor                              95,408       100,680
                                           988,434     1,508,297
  Less:  Inventory - End of Period        (551,127)     (947,185)
  Cost of Goods Sold                       437,407       561,112

  GROSS MARGIN                             183,930       175,158

Interest Income                              2,413         2,418

General and Administrative Expenses       (125,279)     (146,307)

Depreciation and Amortization
  Expense                                  (11,149)      (11,915)

INCOME BEFORE INCOME TAXES                  49,915        19,354

Income Tax Expense                          18,238         2,945

NET INCOME                               $  31,677    $   16,409

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 12
                                                      
                       DAINE INDUSTRIES, INC.
                CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (Unaudited)

  
                                    For The Three Months Ended
                                                September 30,   
                                               1997       1996  

CASH FLOWS FROM OPERATING ACTIVITIES
 Net Income                                  $ 31,677   $ 16,409
  Adjustment to Reconcile Net Income to
  Net Cash Provided By (Used In)
  Operating Activities:
   Depreciation and Amortization Expense       11,149     11,915
   Change in Assets and Liabilities:
    Decrease (Increase) in Accounts
      Receivable                              122,799   (78,055)
    Decrease (Increase) in Inventory           56,000   (43,832)
    Decrease (Increase) in Prepaid Expenses     3,007       502
    Increase (Decrease) in Accounts Payable  
     & Accrued Expenses                        64,543   157,838
    Increase (Decrease) in Income Tax Payable  13,991        -0-

 Net Cash Provided By (Used In) Operating
  Activities                                  303,166    64,777

CASH FLOWS FROM INVESTING ACTIVITIES
 Capital Expenditures                             -0-       -0-

 Net Cash (Used In) Investing Activities          -0-       -0-























Subject to the comments contained in the Accountants Review Report.

                                                    Page 6 of 12

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

                                                  For The 
                                             Three Months Ended
                                                September 30,    
                                               1997       1996   
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                             303,166     64,777

Cash and Cash Equivalents at
  Beginning of Period                         468,991    287,482

CASH AND CASH EQUIVALENTS AT
END OF PERIOD                                $772,157   $352,259


Supplemental Disclosures of Cash Flow Information:

  Cash Paid During the Period for:
     Interest                                $    -0-   $    -0-
     Taxes                                      2,673        221





















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


                                                          Page 7 of 12
 
                     DAINE INDUSTRIES, INC.
         NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
          FOR THE THREE MONTHS ENDED SEPTEMBER 30, 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.


         RECLASSIFICATIONS

         Certain prior period financial statement accounts have been 
         reclassified to conform to current presentation.












                                                       Page 8 of 12
                     DAINE INDUSTRIES, INC.
         NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
          FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1997
                          (unaudited)
                          (Continued)

         INVENTORY

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

                                         9/30/97    6/30/97
               Raw Materials            $273,582   $288,582
               Work-in-Process           177,182    213,182
               Finished Goods            100,363    105,363
                                        $551,127   $607,127

          CONCENTRATION OF CREDIT RISK

          Financial instruments that potentially subject the Company
          to concentration of credit risk are accounts receivable. 
          During the periods ended September 30, 1997 and 1996, three
          customers accounted for approximately 45%, 20%, 12%, and 45%,
          26%, 18%, respectively, of total revenues.  The Company
          performs ongoing credit evaluations of its customers but
          generally does not require collateral to support customer
          receivables.  The loss of any one of these customers could
          have a material adverse effect on the financial condition of
          the company.
          
          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.






                                                          


                                                   Page 9 of 12

                     DAINE INDUSTRIES, INC.
         NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
          FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1997
                          (unaudited)
                          (Continued)


          ESTIMATES IN FINANCIAL STATEMENTS

          Preparation of the Company's financial statements in
          conformity with generally accepted accounting principles
          requires management to make estimates 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.  Accordingly, actual
          results could differ from those estimates.

          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:   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:

                         1998      $ 58,000
                         1999        58,333
                         2000        60,333
                         2001        62,000
                         2002        51,667
                         Total     $290,333










                                                     Page 10 of 12

                    DAINE INDUSTRIES, INC.
         NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
          FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1997
                         (unaudited)
                         (Continued)


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

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

          Deferred tax liabilities relate to depreciation timing  
          differences.










                                                    Page 11 of 12


                    DAINE INDUSTRIES, INC.
         NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
          FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1997
                         (unaudited)
                         (Continued)

                                            September 30, 
                                            1997     1996  

          Current tax expense:
            Income tax at statutory rates  $18,238  $2,945

          Total Tax Expense                $18,238  $2,945

          The tax effect of significant temporary differences, which
          comprise the deferred tax liabilities are as follows:
                                           9/30/97  6/30/97
          Depreciation                     $15,038  $15,038

NOTE 5:   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 6:   INTERIM FINANCIAL REPORTING

          The unaudited financial statements of the company for the
          period July 1, 1997 to September 30, 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 12 of 12



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.  During the quarter ended March 31, 1988,
the Registrant completed its initial public offering.  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 14-35
employees, all except three which were engaged in manufacturing and
assembly activities.

     As a result of the acquisition of the assets of Lite King
Corporation by the Registrant's wholly owned subsidiary, during the
three months ended September 30, 1997, the Registrant generated
revenues of $621,237.  During the three months ended September 30, 1996
the Registrant generated revenues of $736,271.  During the three months
ended September 30, 1997, the Registrant had a net income of $31,677
as compared with net income of $16,409 for the three months ended
September 30, 1996.

     Management expects a general downturn in revenues to continue into
the next quarter (quarter ended December 31, 1997).  Management also
anticipates activities for the quarter ended December 31, 1997 may
result in a loss.  The Registrant is experiencing added competition
from firms with production facilities in China, Mexico and third world
nations which may result in lower gross margins from quarter to quarter.
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 September 30, 1997, the Registrant had total assets of
$1,892,627, current assets of $1,710,588, fixed assets of $175,939,
other assets of $6,100, current liabilities of $225,934, and total
shareholders' equity of $1,651,655.  At June 30, 1997, total assets
amounted to $1,782,416, current assets of $1,589,228, fixed assets of
$187,088, other assets of $6,100, current liabilities of $147,400,
other liabilities of $15,038 and shareholders' equity of $1,619,978.

     Lite King is embarking upon an expansion program which resulted
in the addition of new equipment.  The Registrant has also begun to
manufacture some of the components used in some of its finished
products.  As part of this program, Lite King has upgraded some
existing tooling which should result in having available some improved
products.  Management believes it has adequate financing to fund Lite
King's expansion program.

     The Registrant has begun the introduction of several new products
for sale directly to the end user as compared with current sales to
original equipment manufacturers.  These products will be sold as
replacement items for Christmas, Halloween and Easter decorative
plastic items.  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 September 30, 1997, Lite King's three largest
customers accounted for about 77% 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
September 30, 1997 and June 30, 1997 were $792,157 and $468,991,
respectively.  The increase in cash and cash equivalents was
principally the result of lower inventories and accounts receivable for
the quarter ended September 30, 1997.  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 1998 (year
ended June 30, 1998) 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 1998 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.  

                                

                                











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
                    Dated:  November 12, 1997