UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-QSB

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED

SEPTEMBER 30, 2001



Commission file number
333-62588

Capstone International
Corporation

6966 Coach Lamp Drive

Chilliwack,
B.C.

Canada
V2R 2X6

604-819-2550

IRS Tax ID #:
66-0349372





PART I: FINANCIAL INFORMATION



Item 1. Financial Statements:



CAPSTONE
INTERNATIONAL CORPORATION



(A
DEVELOPMENT STAGE COMPANY)



SEPTEMBER
30, 2001 AND SEPTEMBER 30, 2000











































TABLE
OF CONTENTS





|                                                                                                                                             | Page Number
|-------------------------------------------------------------------------------------------------------------------------------------------- | -----------
|INDEPENDENT ACCOUNTANT'S REPORT
      . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      .                     | 1          
|FINANCIAL STATEMENT                                                                                                                          |            
|Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      . . . . . . . . . . . . . . . . . . .                       | 2          
|Statements of Operations and Deficit
      Accumulated During the Development Stage . . . . . . . . . . . . . . . . .
      . . . . . . .. . | 3          
|Statement of Changes in Stockholders' Equity . . . . . . . . . . . . . . .
      . . . . . . . . . . . .                                     | 4          
|Statements of Cash Flows. . . . . . . . . . . . . . . . . . . . . . . . .
      . . . . . . . . . . . . . . . . .                            | 5          
|Notes to the Financial Statements . . . . . . . . . . . . . . . . . . . .
      . . . . . . . . . . . . . . . .                              | 6          











































































|David E. Coffey             | 3651 Lindell Road, Suite I, Las
      Vegas, Nevada 89103
|--------------------------- | ---------------------------------------------------------
|Certified Public Accountant | Phone (702) 871-3979                                     





INDEPENDENT
ACCOUNTANT'S REPORT



To
the Board of Directors and Stockholders

of
Capstone International Corporation

Surrey,
BC, Canada



I have reviewed the accompanying balance sheets of Capstone International
Corporation (a
development stage company) as of September 30, 2001 and December 31, 2000 and
the related statements of operations, cash flows, and changes in stockholders'
equity for the three and nine month periods then ended, as well as the
cumulative period from November 16, 2000 (date of inception) to September 30,
2001.  These statements are the responsibility of Capstone International
Corporation's
management.



I conducted my review in accordance with standards established by the American
Institute of Certified Public Accountants.  A review of interim information
consists principally of applying analytical procedures to financial date and
making inquiries of persons responsible for financial and accounting
matters.  It is substantially less in scope than an audit conducted 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, no such opinion is expresses.



Based on my review, I am not aware of any material modifications that should be
made to the accompanying financial statements for them to be in conformity with
generally accepted accounting principals established by the American Institute
of Certified Public Accountants.







David
E. Coffey

Las
Vegas, Nevada

November
19, 2001

















































CAPSTONE
INTERNATIONAL CORPORATION

(A
DEVELOPMENT STAGE COMPANY)

BALANCE
SHEETS







|                                                               | June
      30, 2001        | December 
      31, 2000
|-------------------------------------------------------------- | -------------------------- | ------------------------
|ASSETS                                                         |                            |                         
|Cash                                                           | $            
      4,006  | $       
      32       
|Total Assets                                                   | $            
      4,006  | $       
      32       
|LIABILITIES & STOCKHOLDERS'
      EQUITY                       |                            |                         
|Accounts Payable                                               | $                 
      0 | $         
      0      
|Total Liabilities                                              | 0                          | 0                       
|                                                               |                            |                         
|Stockholders' Equity                                           |                            |                         
|Common stock, authorized 100,000,000                           |                            |                         
|shares at $.001 par value, 2,050,000 shares and 100,000 shares |                            |                         
|respectively, issued and outstanding                           |                            |                         
|4,021,000 shares, respectively, after                          | 2,050                      | 100                     
|Additional paid-in capital                                     | 18,091                     | 900                     
|Deficit accumulated during the                                 |                            |                         
|development stage                                              | (16,135)                   | (968)                   
|Total Stockholders' Equity                                     | 4,006                      | 32                      
|Total Liabilities and
      Stockholders' Equity               | $           
      4,006   | $      
      32        

The accompanying notes are an
integral part of these financial statements



-2-











CAPSTONE
INTERNATIONAL CORPORATION

(A
DEVELOPMENT STAGE COMPANY)

STATEMENTS
OF OPERATIONS AND DEFICIT

ACCUMULATED
DURING THE DEVELOPMENT STAGE

(With
Cumulative Figures From Inception)



|                                                    | Nine
      months ending Sept. 30, 2001 | From
      Inception Nov. 16, 2000 to Sept. 30, 2001
|--------------------------------------------------- | --------------------------------------- | ----------------------------------------------------
|Income                                              | $            
      0                   | $                                  
      0         
|                                                    |                                         |                                                     
|Expenses                                            |                                         |                                                     
|Organizational costs                                | 0                                       | 968                                                 
|Profession fees                                     | 14,785                                  | 14,785                                              
|Fees                                                | 254                                     | 254                                                 
|Office
      expenses                               | 128                                     | 128                                                 
|Total expenses                                      | 15,167                                  | 16,135                                              
|                                                    |                                         |                                                     
|Net Loss                                            | (15,167)                                | (16,135)                                            
|                                                    |                                         |                                                     
|Retained earnings, beginning of
      period        | (968)                                   |                                                     
|Deficit accumulated during the development stage    | $   
      (16,135)                     |                                                     
|                                                    |                                         |                                                     
|Earnings (loss) per share,
      assuming dilution: |                                         |                                                     
|Net Loss                                            | $    
      (0.01)                      | (0.02)                                              
|Weighted average shares
      outstanding           | 1,088,889                               | 936,364                                             



The
accompanying notes are an integral part of these financial statements



-3-









CAPSTONE
INTERNATIONAL CORPORATION

(A
DEVELOPMENT STAGE COMPANY)

STATEMENT
OF CHANGES IN STOCKHOLDERS' EQUITY

FROM
NOVEMBER 18, 2000, (Date of Inception) TO SEPTEMBER 30, 2001



|                                        | Common
      Stock  | Additional          | Deficit accumul-    | Total                  
|--------------------------------------- | ------------------- | ------------------- | ------------------- | -----------------------
|                                        | Shares              | Amount              | Paid-in             | ated during the        
|                                        |                     |                     | Capital             | development
      stage
|Balance, November 16, 2000              | $         
      -- | $         
      -- | $         
      -- | $         
      --    
|Issuance of common stock for
      cash |                     |                     |                     |                        
|November 20, 2000                       | 100,000             | 100                 | 900                 | 0                      
|Less net loss                           | 0                   | 0                   | 0                   | (968)                  
|Balance, December 31, 2000              | 100,000             | 100                 | 900                 | (968)                  
|Issuance of common stock for
      cash |                     |                     |                     |                        
|May 9, 2001                             | 400,000             | 400                 | 3,600               | 0                      
|May 14, 2001                            | 700,000             | 700                 | 6,300               | 0                      
|June 14, 2001                           | 850,000             | 850                 | 7,650               | 0                      
|                                        |                     |                     |                     |                        
|Currency translation adjustment         | 0                   | 0                   | (359)               | 0                      
|Less net loss                           | 0                   | 0                   | 0                   | (15,167)               
|Net income (loss)                       | 0                   | 0                   | 0                   | (76,127)               
|Balance, September 30, 2001             | 2,050,000           | 2,050               | 18,091              | (16,135)               



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



-4-























CAPSTONE
INTERNATIONAL CORPORATION

(A
DEVELOPMENT STAGE COMPANY)

STATEMENTS
OF CASH FLOWS)

(With
Cumulative Figures From Inception)



|                                           | Nine
      months ending Sept. 30, 2001 | From
      Inception, Nov. 16, 2000 to Sept. 30, 2001
|------------------------------------------ | --------------------------------------- | -----------------------------------------------------
|CASH FLOWS PROVIDED BY OPERATING           |                                         |                                                      
|ACTIVITIES                                 |                                         |                                                      
|Net Loss                                   | $            
      (15,167)            | $             
      (16,135)                        
|Non-cash items included in net
      loss  |                                         |                                                      
|Adjustments to reconcile net
      loss to |                                         |                                                      
|cash
      by operating activity           | 0                                       | 0                                                    
|                                           |                                         |                                                      
|NET CASH PROVIDED BYOPERATING ACTIVITIES   | (15,167)                                | (16,135)                                             
|CASH FLOWS FROM INVESTING
      ACTIVITIES | 0                                       | 0                                                    
|CASH FLOWS FROM FINANCING ACTIVITIES       |                                         |                                                      
|Sale ofCommon stock                        | 1,950                                   | 2,050                                                
|Paid in
      capital                      | 17,191                                  | 18,091                                               
|NET CASH PROVIDED BY                       |                                         |                                                      
|FINANCING  ACTIVITIES                      | 19,141                                  | 20,141                                               
|NET INCREASE IN CASH                       | 3,974                                   | $                    
      4,006                    
|CASH AT BEGINNING OF PERIOD                | 32                                      |                                                      
|CASH AT END OF PERIOD                      | $                
      4,006           |                                                      



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



-5-











CAPSTONE
INTERNATIONAL CORPORATION

(A
DEVELOPMENT STAGE COMPANY)

NOTES
TO THE FINANCIAL STATEMENTS

SEPTEMBER
30, 2001 AND SEPTEMBER 30, 2000



NOTE
A    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES



> The
>   Company was incorporated on November 16, 2000 under the laws of the State of
>   Delaware.  The buseinss purpose of the Company is to acquire funeral
>   facilities and the selling of prepaid funeral programs.
>   
>   The
>   Company will adopt accounting policies and procedures based upon the nature of
>   future transactions.

NOTE
B    EARNINGS (LOSS) PER SHARE



> Basic
>   EPS is determined using net income divided by the weighted average shares
>   outstanding during the period.  Diluted EPS is computed by dividing net
>   income by the weighted average shares outstanding, assuming all dilutive
>   potential common shares were issued.  Since the Company has no common
>   shares thatare potentially issuable, such as stock options, convertible
>   securities, or warrants, basic and diluted EPS are the same.

NOTE
C    COMMON STOCK ISSUES



> On
>   November 20, 2000 the Company sold 100,000 shares of it's common stock at $.01
>   per share for $1,000.  On May 9 2001 the Company sold 400,000 shares of
>   its common stock at $.01 per share for $4,000.  On May 14, 2001 the
>   Company sold 700,000 shares of its common stock at $01. per share for
>   $7,000.  On June 14, 2001 the Company sold 850,00 shares of its common
>   stock at $.01 per share for $8,500.  All of the proceeds were to be used
>   for working capitl.

NOTE
D    GOING CONCERN



> The
>   Company's financial statements are prepared using generally accepted
>   accounting principles applicable to a going concern, which contemplates the
>   realization of assets and liquidation of liabilities in the normal course of
>   business.  However, the Company has not generated any revenues from its
>   planned principal operations through June 30, 2001.  Without realization
>   of additional capital, it would be unlikely for the Company to continue as a
>   going cocern.  The Company intends to sell an additional 500,000 shares
>   of its common stock for $50,000 in order to provide additional capital to
>   begin its principal operations.
>   
>   -6-





> 

Item 2. Management's Discussion and Analysis:

The information required by this Item is
included in Item 1 above.



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.



CAPSTONE INTERNATIONAL CORPORATION

(Registrant)

Date: __________________

By:

--------------------------------

Darryl Mills

President and duly authorized officer