UNITED STATES
                        SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, D.C. 20549



                                     FORM 12B-25
                           NOTIFICATION OF LATE FILING


                                      Commission File Number 001-09255



(Check One):  [X] Form 10-K   [ ] Form 20-F    [ ] Form 11-K
              [ ] Form 10-Q   [ ] Form N-SAR

                        For Period Ended: JUNE 30, 1998
                        [  ] Transition Report on Form 10-K
                        [  ] Transition Report on Form 20-F
                        [  ] Transition Report on Form 11-K
                        [  ] Transition Report on Form 10-Q
                        [  ] Transition Report on Form N-SAR
                        For the Transition Period Ended:___________________

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  READ INSTRUCTION (ON BACK PAGE) BEFORE PREPARING FORM. PLEASE PRINT OR TYPE.

NOTHING  IN  THIS  FORM  SHALL  BE  CONSTRUED  TO IMPLY THAT THE COMMISSION HAS
VERIFIED ANY INFORMATION CONTAINED HEREIN.
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If the notification relates to a portion of the  filing checked above, identify
the Item(s) to which the notification relates:
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PART I - REGISTRANT INFORMATION

KUALA HEALTHCARE INC.
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Full Name of Registrant


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Former Name if Applicable

910 SYLVAN AVENUE
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Address of Principal Executive Office (Street and Number)

ENGLEWOOD CLIFFS, NJ 07632
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City, State and Zip Code


PART II - RULES 12B-25(B) AND (C)

If the subject report could not be filed without unreasonable effort or expense
and  the  registrant  seeks  relief  pursuant  to Rule 12b-25(b), the following
should be completed.  (Check box if appropriate)



      (a)   The reasons described in reasonable detail in Part III of this form
            could not be eliminated without unreasonable effort or expense;
[X]   (b)   The subject annual report, semi-annual  report,  transition  report
            on Form 10-K, Form 20-F, 11-K or Form  N-SAR,  or  portion thereof,
            will be filed on or before the fifteenth calendar day following the
            prescribed due date; or the subject  quarterly report of transition
            report on Form 10-DQ, or portion thereof will be filed on or before
            the fifth calendar day following the prescribed due date; and
      (c)   The accountant's  statement  or other exhibit required by Rule 12b-
            25(c) has been attached if applicable.

PART III - NARRATIVE

State below in reasonable detail the reasons  why Forms 10-K, 20-F, 11-K, 10-Q,
N-SAR, or the transition report or portion thereof,  could  not be filed within
the prescribed time period.

 The Registrant has announced a prospective sale of a substantial  interest  in
 most  of  its  operating  assets.   Work  on  that  transaction has occupied a
 substantial amount of the time of the Registrant's accounting  personnel,  and
 as a result the Registrant's fiscal year end financial statements have not yet
 been completed.

PART IV - OTHER INFORMATION

(1)   Name  and  telephone  number  of  person  to  contact  in  regard to this
      notification

      ROY SMOLARZ                 201                  567-4600
      -----------                 ---                  --------
        (Name)                (Area Code)         (Telephone Number)

(2)   Have all other periodic reports required under Section 13 or 15(d) of the
      Securities  Exchange Act of 1934 or Section 30 of the Investment  Company
      Act of 1940 during  the  preceding  12  months or for such shorter period
      that the registrant was required to file  such  report(s) been filed?  If
      answer is no, identify report(s).
                                                              [X] Yes    [ ] No

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(3)   Is it anticipated that any significant change in  results  of  operations
      from  the corresponding period for the last fiscal year will be reflected
      by the  earnings  statements  to  be  included  in  the subject report or
      portion thereof?
                                                              [X] Yes    [ ] No

      If so, attach an explanation of the anticipated change,  both narratively
      and  quantitatively,  and,  if  appropriate,  state  the  reasons  why  a
      reasonable estimate of the results cannot be made.

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                          KUALA HEALTHCARE INC.
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                (Name of Registrant as Specified in Charter)

has  caused  this  notification  to  be signed on its behalf by the undersigned
hereunto duly authorized.

Date September 28, 1998               By     /S/ JACK ROSEN
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                                          Name: Jack Rosen
                                          Title: President

INSTRUCTION:   The form may be signed by an executive officer of the registrant
or by any other  duly  authorized  representative.   The  name and title of the
person  signing the form shall be typed or printed beneath the  signature.   If
the  statement  is  signed  on  behalf  of  the  registrant  by  an  authorized
representative   (other   than   an   executive   officer),   evidence  of  the
representative's  authority to sign on behalf of the registrant  shall be filed
with the form.

                                 ATTENTION

INTENTIONAL  MISSTATEMENTS  OR  OMISSIONS OF  FACT  CONSTITUTE FEDERAL CRIMINAL
VIOLATIONS (SEE 18 U.S.C. 1001).


                          GENERAL INSTRUCTIONS

1.    This form is required by Rule 12b-25 (17 CFR 240.12b-25) of  the  General
      Rules and Regulations under the Securities Exchange Act of 1934.

2.    One signed original and four conformed copies of this form and amendments
      thereto  must  be  completed  and  filed with the Securities and Exchange
      Commission, Washington, D.C. 20549,  in  accordance  with Rule 0-3 of the
      General  Rules and Regulations under the Act.  The information  contained
      in or filed  with  the form will be made a matter of public record in the
      Commission files.

3.    A manually signed copy  of the form and amendments thereto shall be filed
      with each national securities  exchange  on which any class of securities
      of the registrant is registered.

4.    Amendments to the notifications must also  be  filed  on  form 12b-25 but
      need not restate information that has been correctly furnished.  The form
      shall be clearly identified as an amendment notification.

5.    ELECTRONIC  FILERS.   This  form  shall not be used by electronic  filers
      unable to timely file a report solely  due  to  electronic  difficulties.
      Files unable to submit a report within the time period prescribed  due to
      difficulties in electronic filing should comply with Rule 201 or Rule 202
      of  Regulations  S-T  (<section>  232.201  or  <section>  232.202 of this
      chapter) or apply for an adjustment in filing date pursuant to Rule 13(b)
      of Regulation S-T (<section> 232.13(b) of this chapter).

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