Washington, D.C. 20549

                                   FORM 10-QSB

[X ]  QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 1997

[ ]  TRANSITIONAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (No Fee Required)

Commission File No. 0-27210

                          Tech Electro Industries, Inc.
                 (Name of Small Business Issuer in its Charter)

          Texas                                                      75-2408297
-------------------------                                            ----------
State or other jurisdiction of                                  I.R.S. Employer
incorporation or organization                                 Identification No.

4300 Wiley Post Rd., Dallas, Texas                                   75244-2131
-----------------------------------                                 -----------
Address of principal executive office                                  Zip Code

Issuer's telephone number:  (972) 239-7151

Check  whether  the issuer has (1) filed all  reports  required by Section 13 or
15(d) of the  Exchange  Act during the past 12 months,  and (2) been  subject to
such filing requirements for the past ninety (90) days. Yes X No

As of June 30, 1997, 2,446,875 shares of Common Stock were outstanding.




                                       -1-

<PAGE>



         THIS DOCUMENT IS PREPARED AND FILED UNDER THE REQUIREMENTS
         OF REGULATION S-B OF THE SECURITIES AND EXCHANGE COMMISSION,
         EFFECTIVE JULY 31, 1992.

                                      Index
Item                                                                        Page
----                                                                        ----
Part I - Financial Statements                                            


         Item 1 - Financial Statements (unaudited)

                    Condensed Consolidated Balance Sheet at
                    June 30, 1997 and 1996.....................................3

                    Condensed Consolidated Statement of Income for
                    the Periods Ended June 30, 1997 and
                    and 1996...................................................5

                    Condensed Consolidated Statements of Cash Flows
                    for the Periods Ended June 30, 1997 and
                    1996.......................................................6

                    Notes to Condensed Consolidated Financial
                    Statements.................................................7

         Item 2  -  Management's Discussions and
                       Analysis of Financial Condition and
                       Results of Operations...................................9

Part II - Other Information

         Item 1 - Legal Proceedings...........................................12

         Item 2.  Changes in Securities.......................................12

         Item 3.  Defaults Upon Senior Securities.............................12

         Item 4.  Submission of Matters to a
                    Vote of Securities Holders................................12

         Item 5.  Other Information...........................................13

         Item 6.  Exhibits and Reports on Form 8-K............................13

Signatures....................................................................14

 
                                       -2-

<PAGE>



PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements.

                  Tech Electro Industries, Inc and Subsidiaries
                      Condensed Consolidated Balance Sheet
                                   (unaudited)
            For the Periods Ended June 30, 1997 and December 31, 1996


                                     ASSETS
<TABLE>
<S>                                                           <C>                     <C> 

                                                              June 30, 1997             December 31, 1996
                                                              -------------             -----------------


CURRENT ASSETS
         Cash                                                 $    256,315             $   261,973
         Certificates of Deposit                                   697,249                 464,336
         Marketable Securities                                     698,625                 687,500
         Accounts receivable - customer                            865,110                 357,674
         Accounts receivable - other                               316,934                  22,209
         Inventory, at lower of Cost or Market                   1,693,685               1,493,132
         Prepaid expenses                                          221,476                  80,943
                                                              ---------------      ---------------
TOTAL CURRENT ASSETS                                          $  4,749,395              $3,375,767

NON-CURRENT ASSETS
         Notes receivable                                     $    110,616            $     15,000

NET PROPERTY & EQUIPMENT                                      $    252,629            $    192,152

OTHER ASSETS
         Notes Receivable                                     $          0            $    113,538
         Investment in Bonds                                         2,000                       0
         Organization costs                                            360                       0
         Other                                                           0                   2,428
                                                              ---------------      ---------------
TOTAL OTHER ASSETS                                            $      2,360            $    225,966
                                                              ---------------      ---------------
TOTAL ASSETS                                                    $5,114,999            $  3,690,885
                                                              ===============      ===============
</TABLE>

            See Notes to Condensed Consolidated Financial Statements


 
                                       -3-

<PAGE>



                  Tech Electro Industries, Inc and Subsidiaries
                      Condensed Consolidated Balance Sheet
                                   (unaudited)
            For the Periods Ended June 30, 1997 and December 31, 1996


                       LIABILITIES & STOCKHOLDERS' EQUITY
<TABLE>
<S>                                                           <C>                <C>     


                                                              June 30, 1997      December 31, 1996
                                                              -------------      -----------------
Current liabilities
         Accounts payable trade                               $    368,031            $    267,125
         Accounts payable - other                                      273
         Accrued liabilities                                       105,769                  21,466
         Notes Payable Banks                                         1,000                 347,772
         Notes payable - Affiliates                                      0                 245,000
         Notes payable - others                                    277,322                       0
         Dividends payable                                          46,669                  13,459
                                                              ---------------      ---------------
Total Current Liabilities                                     $    799,064            $    894,822

TOTAL LIABILITIES                                             $    799,064            $    894,822
                                                              ============            ============


MINORITY INTEREST IN SUBSIDIARY                               $     60,707            $     76,933


                   
STOCKHOLDERS' EQUITY
     Preferred stock, $1.00 par value; 
             1,000,000 shares  authorized;
             65,000 Class B issued  and  outstanding, 
             liquidation  perference of $341,250;
             280,700 Class A issued and outstanding, 
             liquidation  preference of $1,473,675            $   345,700             $   365,000

         Common   Stock, $.01 par value; 10,000,000 shares authorized, 2,446,875
                  shares issued and  outstanding  on June 30, 1997 and 1,308,275
                  shares issued and
                  outstanding on December 31, 1996                 24,447                  13,083
         Additional paid in capital                             4,234,906               2,350,202
         Unrealized Gains (Losses)                                 55,400                 (75,204)
         Retained Earnings (Deficit)                             (405,225)                 66,049
                                                             ---------------      ---------------
TOTAL STOCKHOLDERS' EQUITY                                     $4,255,228              $2,719,130
                                                             ---------------      ---------------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY                       $5,114,999              $3,690,885
                                                             ===============      ===============
</TABLE>

            See Notes to Condensed Consolidated Financial Statements



                                       -4-

<PAGE>



                  Tech Electro Industries, Inc and Subsidiaries
                 Condensed Consolidated Statements of Operations
                                   (unaudited)
                  For the Periods Ended June 30, 1997 and 1996
<TABLE>
<S>                                              <C>           <C>            <C>            <C>   

                                                       Three Months Ended            Year to Date
                                                            June 30                     June 30
                                                     --------------------            ------------
                                                      1997          1996          1997         1996
                                                      ----          ----          ----         ----

Sales                                           $ 1,483,230    $   976,448    $ 2,569,794    $ 1,844,392     
Cost of goods sold                                1,087,247        699,508      1,886,187      1,316,906
                                                -----------    -----------    -----------    -----------
Gross profit                                        395,983        276,940        683,607        527,486
General & administrative                            611,151        301,958      1,134,640        550,599
                                                
                                                -----------    -----------    -----------    -----------
                                   
Income (loss) from operations                   $  (215,168)   $   (25,018)   $  (451,033)   $   (23,113)

Other Income (Expense)
         Interest income                        $    35,521    $    22,568    $    51,658    $    40,920
         Interest Expense                            (1,513)       (13,388)       (16,362)       (26,679)

                                                -----------    -----------    ----------     -----------
Income (loss) before minority                   $  (181,160)   $   (15,838)   $  (415,737)   $    (8,872)

Minority share of subsidiary loss               $     1,758    $         0    $    16,226    $         0

Income tax expense (benefit)
         Current                                $         0    $    (1,046)   $         0    $         0
         Deferred                                         0         (1,979)             0         (1,979)
                                                -----------    -----------    -----------    -----------
                                                                                  
Total income tax expense (benefit)              $         0    $    (3,025)   $         0    $    (1,979) 
                                                -----------    -----------    -----------    -----------
                                                                                  
Net income (loss)                               $  (179,402)   $   (12,813)   $  (399,511)   $    (6,893)
                                                ===========    ===========    ===========    ===========

Income (loss) attributable to
         common stockholders                   $   (212,252)   $   (45,663)   $  (432,361)   $   (61,643)     
                                               ============    ===========    ===========    ===========
Earnings (loss) per share                      $      (0.09)   $     (0.04)   $     (0.23)   $     (0.05)
                                               ============    ===========    ===========    ===========

Number of weighted average shares
of common shares outstanding                      2,427,575      1,141,275      1,864,425      1,232,860
                                               ============    ===========    ===========    ===========
</TABLE>


            See Notes to Condensed Consolidated Financial Statements

 
                                       -5-

<PAGE>



                  Tech Electro Industries, Inc And Subsidiaries
                 Condensed Consolidated Statements of Cash Flows
                                   (unaudited)
              For the 6 Month Period Ending June 30, 1997 and 1996
<TABLE>
<S>                                                                           <C>                <C>     

                                                                                   1997             1996
                                                                                   ----             ----
CASH FLOWS FROM OPERATING ACTIVITIES

         Net Income (Loss)                                                    $(399,512)         $(6,893)
         Adjustments to reconcile net income (loss) to
                  Cash provided (used) by operations
                           Depreciation                                          16,499           14,683
                           Provision for obsolete inventory                      15,000            8,400
                           Minority interest share of subsidiary                (16,226)               0
                           Deferred taxes                                             0           (1,979)
                  Changes in operating assets and liabilities
                           (Increase) decrease in -
                                    Accounts Receivable - Trade                (507,437)         (70,747)
                                    Other Receivable                            (69,725)          (6,494)
                                    Advance to Employee                               0          (93,000)
                                    Inventory                                  (215,553)        (197,431)
                                    Prepaid Expenses                           (140,533)        (176,539)
                           Increase (decrease) in -
                                    Accounts payable                            101,180         (125,923)
                                    Accrued liabilities                          84,303           24,497
                                                                              ---------        --------- 

NET CASH PROVIDED (USED) BY
         OPERATING ACTIVITIES                                               $(1,132,004)       $(631,426)

CASH FLOWS FROM INVESTING ACTIVITIES
         Additions to property and equipment                                   $(76,908)        $(51,048)
         Additions to certificates of deposit                                  (697,249)          (5,181)
         Advances on Note Receivable                                                  0          (31,482)
         Repayment on Note Receivable                                            17,922            5,000
         Net sale of marketable securities                                      584,690         (920,200)
                                                                            -----------       ----------
NET CASH USED BY INVESTING ACTIVITIES                                         $(171,545)     $(1,002,911)

CASH FLOWS FROM FINANCING ACTIVITIES
         Proceeds from Short-Term Debt                                          $53,383          $50,703
         Payments on Short-Term Debt                                           (347,772)         (60,000)
         Payments on Related Party Borrowing                                   (245,000)               0
         Proceeds from Sale of Preferred, Common, Warrants                    1,870,707        2,103,891
         Dividends (paid) accrued                                               (32,491)         (43,800)
                                                                            -----------      ----------- 
NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES                             $1,298,827       $2,050,794
                                                                            -----------      ----------- 
NET INCREASE (DECREASE) IN CASH                                                 $(4,722)        $416,457

CASH AT BEGINNING OF PERIOD                                                    $261,098         $141,433
                                                                            -----------      ----------- 
CASH AT END OF PERIOD                                                          $256,376         $557,890
                                                                         ==============      ===========

</TABLE>

            See Notes to Condensed Consolidated Financial Statements

 
                                       -6-

<PAGE>




                  Tech Electro Industries, Inc and Subsidiaries
              Notes to Condensed Consolidated Financial Statements
                                   (unaudited)


Note A - Basis of Presentation

The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting  principles for interim financial information
and in  accordance  with the  instructions  per Item  310(b) of  Regulation  SB.
Accordingly,  they do not include all of the information and footnotes  required
by generally accepted accounting principles for complete financial statements.

In the opinion of management,  all adjustments  (consisting of normal  recurring
adjustments)  considered  necessary for a fair  presentation have been included.
Operating  results  for the  six  month  period  ended  June  30,  1997  are not
necessarily  indicative  of the results that may be expected for the year ending
December 31, 1997.

Note B - Organization

Tech Electro  Industries,  Inc.  (TEI) was formed on January 10, 1992 as a Texas
organization.  On January 31, 1992, TEI acquired 100% of the outstanding  common
stock of Computer Components  Corporation (CCC). In February,  1996, TEI filed a
Form  SB-2  Registration  Statement  and  completed  a public  offering  the net
proceeds of which amounted to $2,043,891 including warrants.

On June 1, 1996,  pursuant to a Stock Exchange  Agreement,  TEI acquired 100% of
the outstanding shares of Vary Brite Technologies,  Inc. (VBT) by issuing 50,000
shares of its common stock. The business combination was accounted for using the
pooling method.  The historical  consolidated  statements of operations prior to
the date of the combination  have not been adjusted to include the operations of
VBT as these  operations  are immaterial to the  consolidated  operations of the
Company.  Accordingly,  the accompanying  consolidated  statements of operations
include,  the  operations  of VBT from  June 1, 1996  forward.  The  assets  and
liabilities  acquired were also immaterial to the consolidated balance sheets of
the Company.

On October 29, 1996, TEI incorporated  Universal Battery  Corporation (UBC) as a
67% owned subsidiary.

Effective  February 10, 1997,  pursuant to  Regulations S as  promulgated by the
Securities  and Exchange  Commission,  TEI sold  1,100,000  shares of its common
stock and options to acquire 1,000,000 shares of common stock for $1,870,000,  a
combined  price of $1.70 net to the Company.  The amounts raised were charged to
the  additional  paid-in  capital of the  Company.  The options have an exercise
price of $2.15 per share and expire thirteen months from the date of issuance.


 
                                       -7-

<PAGE>



Note C - Dividends

Dividends are accrued  monthly on 300,000 shares of Class A Preferred  Stock and
65,000  shares of Class B Preferred  Stock at $.030625  per share.  No dividends
were paid during the quarter  ended June 30,  1997,  $32,850 in  dividends  were
accrued. Dividends paid in June 1996 were $10,950. Dividends payable at June 30,
1997 were $46,669.

Note D - Notes Receivable

Notes Receivable consisted of the following at June 30, 1997:
<TABLE>
<S>                                                                                 <C>    


                  Note  receivable from a minority  shareholder,  interest at 6%
                  unpaid interest accrues monthly and adds to principal, $30,000
                  due at maturity  in August  1999 and $74,644 due in  February,
                  2000,  secured  by 1,250  shares of TEI  common  stock and all
                  future  TEI  dividends  on  common  stock,  if any,  are to be
                  applied  to  principal  and  interest  by the  Company  on the
                  debtor's behalf                                                   110,616

                  Note receivable, jointly and severally, from two minority 
                  shareholders with interest at 6%, paid in full April, 1997                                                   -0-
                                                                                     -------
                  Total notes receivable                                             110,616

                  Less current maturities                                                 -0-
                                                                                     -------
                  Long-term portion                                                  110,616

Note E - Bank Debt

Bank debt as of June 30, 1997 consists of the following:

                  $750,000  line of credit with Texas  Central  Bank  payable on
                  demand with interest at prime plus one half percent,  maturing
                  June 30, 1997, and secured by accounts 
                  receivable,  inventory
                  and automotive equipment                                             1,000

                  $139,991  term note to Bank One, Texas with $6,666  principal
                  plus interest at base rate
                  plus 1% due monthly,  fully paid in
                  July, 1996                                                              -0-
                                                                                     -------
                                                                                       1,000
                  Less current maturities                                              1,000
                                                                                     -------
                  Long term portion                                                       -0-

</TABLE>


 
                                       -8-

<PAGE>



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

         The following  discussion  and analysis  should be read in  conjunction
with the Company's  Consolidated Financial Statements and notes thereto included
elsewhere in this Form 10-QSB.  Except for the historical  information contained
herein,  the discussion in this Form 10-QSB  contains  certain  forward  looking
statements  that involve  risks and  uncertainties,  such as  statements  of the
Company's  plans,  objectives,   expectations  and  intentions.  The  cautionary
statements  made in this Form 10-QSB  should be read as being  applicable to all
related forward-looking statements wherever they appear in this Form 10-QSB. The
Company's  actual results could differ  materially  from those  discussed  here.
Factors that could cause or  contribute  to such  differences  include,  without
limitation, those factors discussed herein and in the Company's Annual Report on
Form 10-KSB for the year ended December 31, 1996.

         Currently,   the  Company's   operations  are  conducted   through  its
wholly-owned  subsidiaries,  Computer Components Corporation ("CCC"), Very Brite
Technologies, Inc.
("VBT") and Universal Battery Corporation ("UBC").

Three-months Ended June 30, 1997 Compared to Three-months Ended June 30, 1996

         Results of Operations

         The Company's  results for  operations  for the second quarter of 1997,
compared  to the second  quarter of 1996,  were  significantly  impacted  by the
operations of VBT and UBC, which were acquired and formed,  respectively,  after
the second quarter of 1996, and for which there are no comparable results in the
first quarter of 1996.

         Revenues. 
         --------

For the three  month  period  ending  June 30,  1997,  the  Company had sales of
$1,483,230,  an increase of approximately  51.90% from sales of $976,448 for the
three month period ending June 30, 1996. The increase in sales was due, in part,
to  increased  sales of  distribution  products by CCC to $190,183 in the second
three months of 1997 from $143,479 in the second quarter of 1996, an increase of
32.64%,  and an  increase in the sale of battery  assemblies  to $279,295 in the
second three months of 1997 from $227,717 in the second three months of 1996, an
increase of 22.65%. These increased sales were offset, in part, by a decrease in
sales of import  products to $597,279  in the second  three  months of 1997 from
$623,213 in the second three months of 1996, a decrease of 4.16%.

         The Company's sales were significantly increased by sales originated by
UBC, which contributed sales of $348,774 in the second quarter of 1997, and VBT,
which  contributed  sales of $39,945 in the first three months of 1997.  Neither
VBT nor UBC had sales  contributing  to the  Company's  revenues  in  comparable
periods in 1996.

         The Company  recognized a loss from operations of $181,160  (unaudited)
for the three month period  ending June 30, 1997,  compared to a loss of $25,018
during the same period in the prior year.  The Company's  loss was primarily due
to an increase in general and

 
                                       -9-

<PAGE>



administrative  expenses to $611,151 in the second quarter of 1997 from $301,958
in the second  quarter of 1996, an increase of 102.40%.  The increase in general
and  administrative  expenses,  in turn,  resulted primarily from an increase in
wages at the Company and CCC,  costs  associated  with the operations of VBT and
UBC and increased legal and professional expenses.

         Cost of  Goods  Sold. 
         --------------------

The Company's  cost of goods sold,  consisting  primarily of inventory,  rose to
$1,087,247  during the second quarter of 1997,  compared to $699,508  during the
second  quarter of 1996,  an  increase  of 55.43%,  but  declined  slightly as a
percentage  of sales from  76.33% in the three  months  ending  June 30, 1996 to
73.30% in the three months ending June 30, 1997.

         General  and  Administrative   Expenses.
         ----------------------------------------

The  Company's  general and  administrative  expenses,  consisting  primarily of
wages,  benefits  and related  expenses,  rose to  $611,151 in the second  three
months of 1997,  compared  to $301,958 in the second  three  months of 1996,  an
increase of an increase of 102.40%.  This  increase is  attributed  to increased
wages at the Company and CCC,  costs  associated  with the operations of VBT and
UBC, and increased legal and other professional expenses.

         Purchase Order Backlog.
         -----------------------

The Company's purchase order backlog increased from approximately  $1,494,998 at
June 30, 1996,  to  approximately  $1,861,570  at June 30, 1997,  an increase of
approximately  24.52%.  Of this  increase,  $436,187 is  attributed  to purchase
orders generated by VBT, which had no operations in the corresponding  period in
1996.  The  Company  uses its  purchase  order  backlog  to gauge  future  sales
potential.

         Interest  Expense.
         ------------------

The Company  incurred  $1,513 in interest  expense in the second three months of
1997,  compared to $13,388 during the second three months of 1996, a decrease of
89.11%.  The  reduction  in  interest  expense was due to the  repayment  by the
Company of substantially all outstanding indebtedness in March 1997.

Six-Months Ended June 30, 1997 Compared to Six-months Ended June 30, 1996

         Results of Operations

         Revenues. 
         ---------

For the six  month  period  ending  June 30,  1997,  the  Company  had  sales of
$2,569,714, an increase of 39.33% from sales of $1,844,392 for the period ending
June 30, 1996. The increase in sales was  attributable  primarily to an increase
in sales of distribution  products by CCC to $338,275 in the first six months of
1997 from $211,782 in the first six months of 1996,  an increase of 59.73%,  and
an  increase  in the sale of battery  assemblies  to  $581,292  in the first six
months of 1997 from  $441,442  in the first six months of 1996,  an  increase of
31.68%.  These increases were offset,  in part, by a decrease in sales of import
products to  $1,139,719  in the first six months of 1997 from  $1,155,722 in the
first six months of 1996, a decrease of 1.38%.
 
                                      -10-

<PAGE>



         The   Company's   sales  in  the  first  two   quarters  of  1997  were
significantly  impacted by sales from VBT, which contributed sales of $54,088 in
the first six months of 1997,  and UBC, which  contributed  sales of $442,899 in
the first six  months of 1997.  Neither  VBT nor UBC  recorded  any sales in the
first six months of 1996.

         The Company  recognized a loss from operations of $451,033  (unaudited)
for the six month  period  ending June 30,  1997,  compared to a loss of $23,113
during the prior year.  The  Company's  loss was primarily due to an increase in
general and  administrative  expenses to  $1,134,640  in the first six months of
1997 from  $550,599  in the same period in 1996,  an  increase  of 106.07%.  The
increase in general and  administrative  expenses,  in turn,  resulted primarily
from an increase in wages at CCC, the support of expanded  operations at UBC and
VBT, and increased legal and professional expenses. A substantial portion of the
increase in wages paid at CCC, in turn,  was due to signing  bonuses paid to the
President of CCC and to a key employee of CCC.

         Cost of  Goods  Sold. 
         --------------------

The Company's  cost of goods sold,  consisting  primarily of inventory,  rose to
$1,886,187  during the first six months of 1997,  compared to $1,316,906  during
the first six months of 1996,  an  increase  of 43.23%,  and rose  slightly as a
percentage of sales to 72.87% of sales in the first six months of 1997, compared
to 71.40% of sales in the first six months of 1996.

         General  and  Administrative   Expenses. 
         ----------------------------------------

The  Company's  general and  administrative  expenses,  consisting  primarily of
wages, benefits and related expenses, rose to $1,134,640 in the first six months
of 1997,  compared to  $550,599 in the first six months of 1996,  an increase of
106.07%.  This  increase is  attributed to start-up  costs  associated  with the
organization  of VBT and UBC, as well as increased wages and bonuses paid in the
first three months of 1997.  While  management  believes many of these costs are
non-recurring, there can be no assurance that the Company will not incur similar
costs in future periods.

         Interest  Expense. 
         ------------------

The  Company  incurred  $16,362 in  interest  expense in the first six months of
1997,  compared to $26,679  during the first three months of 1996, a decrease of
38.67%. The Company repaid  substantially all outstanding  indebtedness in March
1997.

Liquidity

         In February,  1997 the Company  completed an offshore  placement of its
common  stock and  warrants  for which it obtained  aggregate  consideration  of
approximately  $1,870,000.  At June 30,  1997,  the  Company  had  approximately
$1,621,854 in cash and cash equivalents,  marketable securities and certificates
of  deposits.  The  Company  expects  to use the  bulk of  these  funds  to fund
expansion  of existing  operations  by CCC,  UBC and VBT,  primarily to purchase
additional inventory and expand those entities' product lines.

         On May  15,  1997,  the  Company  announced  that it had  approved  the
placement of an additional  1,000,000  shares of its common stock and options to
acquire an additional  1,000,000 shares of common stock. The Company has not yet
placed these shares, and may

 
                                      -11-

<PAGE>



reprice  or  otherwise  revise  the  terms  of the  placement  to meet  existing
conditions. The proceeds of a placement, after payment of offering expenses, are
expected  to be used for  acquisitions  and  diversifications.  There  can be no
assurance,  however,  that  such  funds can be  placed,  or if  placed,  that an
acceptable acquisition candidate can be identified or acquired.

         Management  of the Company  believe that its existing  funds,  together
with funds to be raised by the Company in the aforementioned placement and other
liquid  assets  available to the Company,  are adequate to provide funds for the
foreseeable future.


PART II - OTHER INFORMATION.

Item 1.  Legal Proceedings.

                  None.

Item 2.  Changes in Securities.

                  None.

Item 3.  Defaults Upon Senior Securities.

                  None.

Item 4.  Submission of Matters to a Vote of Securities Holders.

                  On July 18, 1997, the shareholders of the Corporation took the
following action at its regular annual meeting of shareholders:

         1.       The Shareholders voted to elect the following individuals to 
serve as directors of the Corporation:

                  William Kim Wah Tan
                  Kim Yeow Tan
                  Sadasuke Gomi
                  Steven Scott
                  Ian Colin Edmonds

         2.       The Shareholders approved the Corporation's 1997 Stock Option 
Plan.

         3. The Shareholders  ratified the selection of Deloitte & Touche LLP as
the Corporation's independent auditors for the year ending December 31, 1997.


 
                                      -12-

<PAGE>



Item 5.  Other Information.

                  None.

Item 6.  Exhibits and Reports on Form 8-K.

                  (a)      Exhibits.

                                    None.

                  (b)      Reports on Form 8-K.

         On June 24, 1997, the Corporation  filed a Form 10-Q reporting that the
Company retained Deloitte & Touche, LLP as its independent  public  accountants,
replacing King, Griffin & Adamson, P.C., formerly King, Burns & Company, P.C.




                                      -13-

<PAGE>


                                   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.


Tech Electro Industries, Inc.


Date: August 15, 1997                       /s/  WILLIAM KIM WAH TAN
                                            ------------------------------------
                                            William Kim Wah Tan
                                            Chairman of the Board, President and
                                            Chief Executive Officer



Date: August 15, 1997                       /S/  SADASUKE GOMI
                                            ------------------------------------
                                            Sadasuke Gomi
                                            Acting Chief Financial Officer and
                                            Principal Accounting Officer


                                       -14-

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