United States
                       Securities and Exchange Commission

                              Washington, DC 20549
(Mark One)

                                   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 March 31, 2003
                                                --------------

                                       or

|_| TRANSITION  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

For the transition period from              to
                                -----------     -----------

                        Commission file number 0 - 30927


                              Garuda Capital Corp.
                -----------------------------------------------
             (Exact name of registrant as specified in its charter)

           Nevada                                         980209053
------------------------------              ------------------------------------
State or other jurisdiction of              (I.R.S. Employer Identification No.)
incorporation or organization

502-1978 Vine Street, Vancouver, BC                         V6K 4S1
-------------------------------------------------------------------------------
(Address of principal executive offices)                  (Zip Code)

                                  604-837-0260
                   -----------------------------------------
               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 Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was require to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. |x| Yes |_| 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 Sections 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 USERS

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date. Common Stock, $0.001 par value,
6,169,575 shares as May 12, 2003.



<PAGE>


                         PART I - FINANCIAL INFORMATION

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

                          ITEM 1. FINANCIAL STATEMENTS

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



The accompanying financial statements of Garuda Capital Corp. at March 31, 2003
and March 31, 2002 have been prepared by the Company's management and they do
not include all information and notes to the financial statements necessary for
a complete presentation of the financial position, results of operations, and
cash flows in conformity with accounting principles generally accepted in the
United States of America. In the opinion of management, all adjustments
considered necessary for a fair presentation of the results of operations and
financial position have been included and all such adjustments are of a normal
recurring nature.

Operating results for the quarter ended March 31, 2003, are not necessarily
indicative of the results that can be expected for the year ending June 30,
2003.



<PAGE>



                           CONSOLIDATED FINANCIAL STATEMENTS


                           GARUDA CAPITAL CORP.
                           (FORMERLY VANSTAR FILMS, INC.)

                           VANCOUVER, BRITISH COLUMBIA, CANADA

                           March 31, 2003 AND 2002













                  1. CONSOLIDATED BALANCE SHEETS

                  2. CONSOLIDATED STATEMENTS OF OPERATIONS

                  3 CONSOLIDATED STATEMENTS OF CASH FLOWS

                  4. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



<PAGE>


<TABLE>
<CAPTION>



Garuda Capital Corp.

CONSOLIDATED BALANCE SHEETS
UNAUDITED

March 31, 2003 and June 30, 2002                                           (US Dollars)

                                                             March 31,        June 30,
                                                               2003            2002
--------------------------------------------------------------------------------------
<S>                                                         <C>            <C>
ASSETS

Current
    Cash                                                    $    (2,090)   $      --
    Subscriptions receivable                                       --          100,000
    Accounts receivable                                         306,941        210,834
    Available-for-sale securities                               179,462        204,186
    Inventory, net                                              332,045        365,989
    Prepaid expenses                                             49,568         20,523
--------------------------------------------------------------------------------------

    Current assets                                              865,926        901,532

Property and equipment, net                                     384,388        401,826
Goodwill                                                        661,524        661,524
--------------------------------------------------------------------------------------

                                                            $ 1,911,838    $ 1,964,882
======================================================================================

LIABILITIES
Current
    Bank indebtedness                                       $   248,498    $    10,624
    Bank loan                                                   176,200           --
    Accounts payable and accrued expenses                       420,954        363,563
    Accounts payable - related parties                          129,293           --
    Unearned revenue                                              8,824         35,297
    Current portion of long term debt                                 0          3,951
--------------------------------------------------------------------------------------

    Current liabilities                                         983,769        413,435

Long term debt                                                   57,401          6,166
Amounts due to shareholders                                        --          432,504
--------------------------------------------------------------------------------------

                                                              1,041,170        852,105
SHAREHOLDERS' EQUITY
Preferred stock, $0.001 par value; authorized 10,000,000;
     Issued: None                                                  --             --
Common stock, $0.001 par value; authorized 50,000,000;
     Issued: 6,169,575;                                           6,050          6,050
Capital in excess of par value                                2,359,801      2,359,801
Translation adjustment                                           10,129          3,340
Deficit                                                      (1,505,312)    (1,256,414)
--------------------------------------------------------------------------------------

                                                                870,668      1,112,777
--------------------------------------------------------------------------------------
                                                            $ 1,911,838    $ 1,964,882
======================================================================================

The accompanying notes are an integral part of these statements.

                                       4
</TABLE>

<PAGE>
<TABLE>
<CAPTION>


Garuda Capital Corp.

CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED

Three Months ended March 31, 2003 and 2002
Nine Months ended March 31, 2003 and 2002                                                                    (US Dollars)

                                                        Three Months ended                       Nine Months ended
                                                            March 31,                                March 31,
                                                     2003                2002                2003                2002
--------------------------------------------------------------------------------------------------------------------------
<S>                                            <C>                 <C>                 <C>                 <C>
REVENUE
Sales                                          $      216,500      $           -       $   1,761,041       $            -
Cost of goods sold                                    147,542                  -           1,152,934

                                                       68,958                  -             608,107
EXPENSES
General and administrative                            246,367             40,294             794,402               50,526
Depreciation                                           13,240                                 37,901
Advertising and promotion                                   -                                  3,354
Equipment, Premises Leases                             34,222                                 65,415
--------------------------------------------------------------------------------------------------------------------------

                                                      293,829             40,294             901,072               50,526
Loss before other items                             (224,871)           (40,294)           (292,965)             (50,526)
Gain/loss on sale of marketable securities             31,841                                 45,704
--------------------------------------------------------------------------------------------------------------------------

NET LOSS                                            (193,030)           (40,294)           (247,261)             (50,526)

COMPREHENSIVE INCOME (LOSS)
Gain from foreign currency translation                  2,244                                  4,492
Unrealized loss/gain on marketable                   (41,179)                                (3,981)
securities
Loss on sale of motor vehicle                         (2,148)                                (2,148)
--------------------------------------------------------------------------------------------------------------------------
NET COMPREHENSIVE  LOSS                       $     (234,113)      $    (40,294)       $   (248,898)       $     (50,526)
==========================================================================================================================

NET INCOME (LOSS) PER COMMON SHARE - BASIC AND         (0.03)             (0.01)              (0.04)               (0.01)
FULLY DILUTED
--------------------------------------------------------------------------------------------------------------------------
WEIGHTED AVERAGE NUMBER OF COMMON SHARES            6,169,575          4,951,500           6,169,575            4,951,500
OUTSTANDING
--------------------------------------------------------------------------------------------------------------------------





The accompanying notes are an integral part of these statements.



                                                     5
</TABLE>

<PAGE>
<TABLE>
<CAPTION>



Garuda Capital Corp.

CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED

Nine Months ended March 31, 2003 and 2002                                       (US Dollars)



                                                                     2003             2002
--------------------------------------------------------------------------------------------
<S>                                                              <C>            <C>
OPERATIONS
Net loss                                                         $  (248,898)   $   (50,524)
Items not involving cash:
    Depreciation                                                      37,901           --
    Gain/Loss on foreign currency translations                        (4,492)         4,942
    Gain/Loss on sale of marketable securities                       (45,708)          --
    Unrealized gain/loss on marketable securities                      3,981           --
Changes in operating assets and liabilities:
    Increase/Decrease in accounts receivable                         (96,107)          --
    Increase/Decrease in prepaid expenses                            (29,045)          --
    Increase/Decrease in accounts payable and accrued expenses        57,391        (44,104)
    Increase/Decrease in inventory                                    33,944           --
    Increase/Decrease in unearned revenue                            (26,473)          --
    Increase/Decrease in accounts payable - related party            129,293

          Net cash provided by used by operating activities         (188,213)       (89,686)

FINANCING
Increase in bank indebtedness                                        237,874           --
Decrease in subscription receivable                                  100,000      1,251,500
Draws on bank loan                                                   176,200           --
Draw on long term debt                                                47,284           --
Cash paid to shareholders                                           (432,504)          --
--------------------------------------------------------------------------------------------
          Net cash provided by financing activities                  128,854      1,251,500

INVESTING
Sale of marketable securities                                        438,941           --
Purchase of marketable securities                                   (402,135)          --
Cash paid for purchase of property and equipment                      20,463           --
Advances to related companies                                                     (593,734)
Loans to related companies                                                        (570,000)
--------------------------------------------------------------------------------------------

          Net cash used by investing activities                       57,269     (1,163,734)

Net increase (decrease) in cash                                       (2,090)        (1,920)

Cash, beginning of period                                               --              520
--------------------------------------------------------------------------------------------
CASH, end of period                                              $    (2,090)   $    (1,920)
============================================================================================



The accompanying notes are an integral part of these statements.

                                             6
</TABLE>

<PAGE>


Garuda Capital Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Three Months ended March 31, 2003 and 2002                          (US Dollars)

1.  NATURE OF OPERATIONS AND BASIS OF PRESENTATION
________________________________________________________________________________

Organization - The Company was incorporated in Nevada on July 8, 1997 and is a
public company traded on the NASDAQ OTC bulletin board. On February 14, 2002,
the Company changed its name from Vanstar Films, Inc. to Garuda Capital Corp.

Nature of Operations - The Company, through it subsidiaries, sells and processes
specialty food products and herbal medication to wholesale and retail customers
in North America.

For the period ended March 31, 2003, the Company incurred a net loss of
$193,030. The Company's ability to continue its operations and to realize assets
at their carrying values is dependent upon the continued support of its
shareholders, obtaining additional financing and generating revenues sufficient
to cover its operating costs. Management's plans in regard to these matters are
to raise additional equity funds as needed to meet any operating needs.

The financial statements do not give effect to any adjustments which would be
necessary should the Company be unable to continue as a going concern and
therefore be required to realize its assets and discharge its liabilities at
amounts different from those reflected in these consolidated financial
statements.

2.  SIGNIFICANT ACCOUNTING POLICIES

________________________________________________________________________________

Principles of consolidation and basis of accounting - The consolidated financial
statements include the accounts of the Company and its wholly owned
subsidiaries, as follows:

Garuda Ventures Canada Inc. and Garuda Gold Corp. are companies holding idle
working capital as investments in marketable securities. Hagensborg Foods Ltd.
processes and sells specialty food products to wholesale and retail customers in
North America. Hagensborg Seafoods Ltd. processes and sells high-quality seafood
products throughout North America. Natural Program Inc. sells natural herbal
products to wholesale and retail customers in North America. Natural Program
Ltd. provides natural herbal medication to wholesale and retail customers in
North America.

Approximately 90% of Hagensborg Foods revenues are derived from the United
States with the remaining 10% originating in Canada. 100% of the of Hagensborg
Foods assets and liabilities originate in Canada. 100% of the assets,
liabilities, and revenues of Natural Program, Inc. originate in Canada. The
other entities included in the consolidation are located 100% in Canada. Their
assets and operations are maintained solely in Canada.

Available-for-sale securities - The Company has invested in various securities
classified as available-for-sale at December 30, 2002. These securities are
carried at market value on the balance sheet, with the change in fair value
reported as a component of other comprehensive income.

Inventory - Inventory is recorded at the lower of average cost or market. Cost
includes materials, labor and applicable warehouse overhead. Market is
replacement cost for raw materials and supplies and net realizable value for
finished goods.


                                       7
<PAGE>


Garuda Capital Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued


Three Months ended March 31, 2003 and 2002                          (US Dollars)

________________________________________________________________________________

2.  SIGNIFICANT ACCOUNTING POLICIES (continued)


Goodwill - Goodwill represents the excess of the cost of the acquisition over
the fair value of the net identifiable assets acquired. Under Statement of
Financial Accounting Standards No. 142, on an ongoing basis, management reviews
the valuation of goodwill, including any events and circumstances which may have
impaired its fair value. If impairment exists, the amount is written off, rather
than being amortized as previous standards required. The amount of goodwill
impairment, if any, is determined by assessing recoverability based on expected
future cash flows and market conditions. Any impairment, other than temporary,
in the carrying value is charged to earnings in the year incurred.

Revenue recognition - Revenue from the sale of products to customers is
recognized at the time goods are shipped.

Property and equipment - Property and equipment is recorded at cost less
accumulated depreciation. Depreciation is provided for over the estimated useful
lives of the assets on the following basis and annual rates:

Asset                                       Basis                       Rate
________________________________________________________________________________
Manufacturing equipment                     Straight-line            15 years
Manufacturing tools                         Straight-line            15 years
Furniture and fixtures                      Straight-line            15 years
Leasehold improvements                      Straight-line                 20%
Computer hardware and software              Straight-line            15 years
Trademarks                                  Declining balance             20%

Foreign currency translation - As the majority of the Company's operations are
in Canada, the Canadian dollar has been chosen as the Company's functional
currency. All Canadian dollar denominated balances and transactions have been
translated into US funds as follows: monetary assets and liabilities are
translated at current rates of exchange and other assets and liabilities are
translated at historical rates of exchange. Revenue and expenses are translated
at average rates of exchange for the year, except for depreciation and
amortization that are translated at rates in effect when the related assets were
acquired. All exchange gains and losses are recorded as a separate component of
shareholders' equity.

Leases - Leases are classified as capital or operating leases. Leases which
transfer substantially the entire benefits and risks incident to ownership of
property are accounted for as capital leases. All other leases are accounted for
as operating leases and the related lease payments are charged to expense as
incurred.

Fair value of financial instruments - Substantially all of the Company's assets
and liabilities are carried at fair value or contracted amounts that approximate
fair value. Estimates of fair value are made at a specific point in time, based
on relative market information and information about the financial instrument,
specifically, the value of the underlying financial instrument. Assets that are
recorded at fair value consist largely of short-term receivables and marketable
securities, which are carried at contracted amounts that approximate fair value.
Similarly, the Company's liabilities consist of short term liabilities and
shareholder loans recorded at contracted amounts that approximate fair value.

                                       8
<PAGE>


Garuda Capital Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued


Three Months ended March 31, 2003 and 2002                          (US Dollars)

________________________________________________________________________________

Income taxes - Income taxes are accounted for under the asset and liability
method. Deferred tax assets and liabilities are recognized for future timing
differences between the financial statement carrying amounts and their
respective tax bases. Deferred tax assets and liabilities are measured using
enacted tax rates expected to apply to taxable income in the years in which
those temporary differences are expected to be recovered.

Use of estimates - The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ
from those estimates.

Long-lived assets - The Company reviews its long-lived assets for impairment
whenever changes in circumstances indicate that the carrying amount of an asset
may not be recoverable. For purposes of evaluating the recoverability of
long-lived assets, the recoverability test is performed using undiscounted net
cash flows estimated to be generated by the asset.


3.  BANK INDEBTEDNESS
________________________________________________________________________________

The Company has a demand credit facility. It is personally guaranteed by a
shareholder of the Company. Outstanding advances bear interest at prime plus 2%.


4.  CAPITAL LEASE OBLIGATIONS
________________________________________________________________________________

Future minimum payments and the obligations due under capital leases are as
follows as of June 30, 2002:

                                                        2002          2001
________________________________________________________________________________
    2003                                         $        5,164             -
    2004                                                  5,164             -
    2005                                                  2,128             -
________________________________________________________________________________
                                                         12,456             -
Less amount representing interest                       (2,339)             -
________________________________________________________________________________
                                                         10,117            -
Less current portion                                    (3,951)             -
________________________________________________________________________________
                                                 $        6,166            -
===============================================================================

Interest of $502 was imputed on the capital leases, at a rate of 1.88%.


5.  AMOUNTS DUE TO SHAREHOLDERS

________________________________________________________________________________

Advances due to shareholders are unsecured, non-interest bearing and have no
specific terms of repayment. Garuda Capital Corp.



<PAGE>

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued


Three Months ended March 31, 2003 and 2002                          (US Dollars)



6. COMMITMENTS
________________________________________________________________________________

The Company leases certain premises and equipment. Annual minimum lease payments
are due as of June 30, 2002 :

         2003                                 $      108,018
         2004                                         15,408
         2005                                          9,209
         2006                                            -
         2007                                            -

                                              $      132,635




7. OFF-BALANCE SHEET RISKS
________________________________________________________________________________

The Company has purchased securities as investments and may incur losses if the
market value of these securities decline subsequent to March 31, 2003.

During the three Months ended March 31, 2003, the Company had sales to two
customers representing 25% and 12% of the Company's total revenue.




                                       10
<PAGE>


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION / PLAN OF
OPERATIONS


Results of Operations Three Months ended March 2003 vs. 2002 - Garuda Capital
Corp. on Consolidated Basis

During the third quarter of fiscal 2003, we realized total revenues of $216,500
and the net loss for the quarter ended March 31, 2003 was $193,030.


Liquidity and Capital Resources Three Months ended March 2003 vs. 2002 - Garuda
Capital Corp. on Consolidated Basis

We believe that sales from our subsidiaries will not provide sufficient capital
resources to sustain operations and fund product development until fiscal year
2003/2004. While we have received a "going concern" opinion from our auditors,
we expect to raise capital through the conversion of outstanding warrants and
equity sales as necessary to fund future growth until we operate above the
break-even point. We continually evaluate opportunities to sell additional
equity or debt securities, or obtain credit facilities from lenders to
strengthen our financial position. The sale of additional equity or convertible
debt securities could result in additional dilution to our stockholders.

In order to be more informative regarding the results of operations and the
liquidity and capital resources, discussion thereof will be separated between
Hagensborg Foods Ltd. and Natural Program Inc.


Results of Operations for the Three Months ended March 2003 vs. 2002 -
Hagensborg Foods Ltd.

Revenues of $186,141 in the three months ended March 31, 2003 were 9% higher
than the $170,991 in revenues reported for the three months period ended March
31, 2002. The increase was due to the additional revenue gained from the
recently acquired Seafood Pates product line.

Gross profit for the three months ended March 31, 2003was $48,656 versus $66,996
in 2002. Gross profit percentage of 26% in 2003 was lower versus 39% in 2002.
The decrease in gross profit percentage was largely due to higher cocoa prices
for our chocolate manufacturing facility.

Net loss for the three months ended March 31, 2003 was $171,510 versus $94,336
for the same period in 2002, representing a 82% increase in net loss. The
decrease in net income was primarily due to the additional sales and marketing
expenses associated with new product development.

Our sales and marketing costs consist primarily of personnel costs, advertising,
promotions, and tradeshows. Total costs were $85,078 and $42,597 for three
months ended March 31, 2003 and 2002 respectively. The increase of $42,481 is
largely due to additional marketing costs of the new Seafood pate line and


                                       11
<PAGE>

product development costs. We anticipate that sales and marketing costs will
continue to grow over the foreseeable future as we implement our business growth
strategies.

Our general and administrative costs consist primarily of personnel costs,
professional and legal costs, consulting fees, and general office costs. Our
general and administrative costs were $94,445 and $61,098 for the three months
ended March 31, 2003 and 2002, respectively. The increase in general and
administrative costs between the two periods is largely the result of an
increase in interest and bank charges. General and administrative costs as a
percentage of revenue increased between the two periods as a result of increases
in expenses over the same periods. We anticipate that general and administrative
costs will remain stable over the foreseeable future.

Our premise and equipment leases were $31,389 and $30,582 for the three months
ended March 31, 2003 and 2002, respectively.


Liquidity and Capital Resources for the Three Months ended March 2003 vs. 2002 -
Hagensborg Foods Ltd.

Since inception through April 1, 2002 when Hagensborg Foods Ltd. was acquired by
Garuda Capital Corp., we have financed our operations partly through revenues
for operations and bank credit facilities, and partly through the issuance of
equity shares and convertible debentures. We have not been able to operate above
the break-even point for the last four fiscal years and have had to rely on our
parent company for capital resources. We believe that sales from our new product
lines will add new capital resources, but may not be sufficient to sustain
operations and fund new product launches until fiscal 2003/2004.

During the three months ended March 31, 2003, our current assets to current
liabilities ratio decreased from 2.27 to 1.1. Current assets increased $211,494
from $449,872 to $661,366. This was primarily due to increased accounts
receivable levels during our busiest quarter of the year.

Noncurrent assets increased by $74,174 net of depreciation during the three
months ended March 31, 2003 mainly due to the newly acquired production
equipment associated with our Seafood business.


Results of Operations for the Three Months ended March 2003 vs. 2002- Natural
Program Inc.

Natural Program's revenue for the three months ended March 31, 2003 was $21,509
and its gross profit was $11,451. Net loss for the three months ended March 31,
2003 was $20,153.

Currently, our sales consist mostly of Chinese herbal formulations to
practitioners of traditional Chinese medicine on a wholesale basis. We sell the
herbs to practitioners for a wholesale price and they in turn retail them to


                                       12
<PAGE>

their patients with a mark-up (usually 100%). We collect the difference for the
practitioners and balance their accounts at the end of every month. In addition
to our range of Chinese herbs, we are in the process of test marketing a line of
Western herbal remedies in the Vancouver market. As we implement our marketing
plan for this product category in Western Canada, the Pacific North West and
subsequently the rest of Canada and the United States we expect sales to
increase over the coming year.

During the three months ended March 31, 2003, our total payroll increased from
$4,257 in the three months ended March 31, 2002 to $10,136 in the three months
ended March 31, 2003. This increase in mainly due to the labor intensity of
preparing custom formulation and the resulting necessity for additional staff.
In the future, as we implement our growth plans, we anticipate to hire two new
employees to take on sales, marketing and accounting functions which will result
in decreased consulting expenses.

We anticipate to incur sales and marketing costs, including hiring a sales
person, broker fees and tradeshow attendance fees as we implement our business
growth strategies.


Liquidity and Capital Resources for the Three Months ended March 2003 vs. 2002 -
Natural Program Inc.

Since inception through April 1, 2002 when Natural Program Inc. was acquired by
Garuda Capital Corp. we have financed our operations partly through revenues and
bank credit facilities, and partly through the issuance of equity shares. We are
not yet able to operate above the break-even point and have to rely on our
parent company for capital resources. We believe that additional sales resulting
from our increased marketing efforts will add new capital resources, but may not
be sufficient to sustain operations and fund new product launches until fiscal
2003/2004.

In the three months ended March 31, 2003, our current assets to liabilities
ratio decreased from 0.68 to 0.47. Current assets increased from $14,949 to
$17,811 was primarily due to increased inventory levels to support sales.
Noncurrent assets increased from $33,925 to $18,553 net of depreciation during
the three months ended March 31, 2003.

Total liabilities increased from $34,355 in the three months ended March 31,
2002 to $97,391 in 2003. This includes $37,618 in current liabilities and an
inter-company loan from our parent company of $55,103.

Item 3. Controls and procedures

The Company maintains disclosure controls and procedures that are designed to
ensure that information required to be disclosed in the Company's Exchange Act
reports is recorded, processed, summarized and reported within the time periods
specified in the SEC's rules and forms, and that such information is accumulated
and communicated to the Company's management, including its Chief Executive
Officer and Chief Financial Officer, as appropriate, to allow timely decisions

                                       13
<PAGE>

regarding required disclosure based closely on the definition of "disclosure
controls and procedures" in Rule 13a-14(c). In designing and evaluating the
disclosure controls and procedures, management recognized that any controls and
procedures, no matter how well designed and operated, can provide only
reasonable assurance of achieving the desired control objectives, and management
necessarily was required to apply its judgment in evaluating the cost-benefit
relationship of possible controls and procedures.

Within 90 days prior to the date of this report, the Company carried out an
evaluation, under the supervision and with the participation of the Company's
management, including the Company's Chief Executive Officer and the Company's
Chief Financial Officer, of the effectiveness of the design and operation of the
Company's disclosure controls and procedures. Based on the foregoing, the
Company's Chief Executive Officer and Chief Financial Officer concluded that the
Company's disclosure controls and procedures were effective.

There have been no significant changes in the Company's internal controls or in
other factors that could significantly affect the internal controls subsequent
to the date the Company completed its evaluation.

PART II     OTHER INFORMATION

Item 1.   Legal Proceedings.      None.


Item 2.   Change in Securities for the recent issuance of shares

In January 2003, we issued the following common shares:

40,000 shares to John Curry, a former director in consideration of and as
payment of the Corporation's debt to Mr. Curry in the amount of $12,000.

25,000 shares to Birgit Troy, our Secretary as a bonus for recruiting Joyce
Groote.

25,000 shares to BCG Inc., a company controlled by Joyce Groote, as a signing
bonus for the services of Joyce Groote and 30,000 shares to BCG Inc., as
consideration for the future services of Joyce Groote. The shares shall vest
with BCG Inc., in twelve month instalments of 2,500 shares beginning January
2003.

With respect to the sales made, we relied on Section 4(2) of the Securities Act
of 1933, as amended. No advertising or general solicitation was employed in
offering the securities. The securities were offered solely to accredited or
sophisticated investors who were provided all of the current public information
available on Garuda Capital Corp.


Item 3.   Defaults Upon Senior Securities.  None.

Item 4.   Submission  of  Matters  to  a  Vote  of  Security Holders.  None.


                                       14
<PAGE>

Item 5.   Other Information.

Pascal Roy, President and director of our subsidiary Natural Program has
resigned his positions effective September 30, 2002. To replace him, Joyce
Groote was appointed as the new President and CEO of Natural Program effective
January 3, 2003. Mrs. Groote's first priority will be to develop an aggressive
business strategy with the initial focus on increasing sales. She comes with the
necessary science and business background to develop and implement this
strategy. Mrs. Groote holds an MSc degree in Genetics from the University of
Alberta and MBA from the University of Ottawa. Throughout her career she has
been involved with many sectors ranging from biotechnology to functional foods
and nutraceuticals. She has in depth knowledge and experience with the
regulatory system as well as the business community and has developed a strong
national/international network with companies involved in life sciences.


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

     (a)  Exhibits:

2.1 (1)     --         Hagensborg Foods Ltd. Acquisition Agreement
2.2 (1)     --         Natural Program Inc. Acquisition Agreement
3.1 (2)     --         Articles of Incorporation
3.2 (1)     --         Bylaws
3.3 (1)     --         Articles of Amendment
11          --         Statement RE: Computation of Per Share Earnings
99.1        --         Section 906 Certification



1.   Incorporated by reference from Form 10-kSB Annual Report filed on or about
     October 15, 2002

2.   Incorporated by reference from Form 10-SB registration statement SEC File #
     filed on or about June 29, 2000

         (b)      Reports on Form 8-K:      None

--------------------------------------------------------------------------------
                                   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.



                                              GARUDA CAPITAL CORP.
                                                 [Registrant]


                                               /s/ C. Robin Relph
                                          -----------------------------
Date May 15, 2003                           C. Robin Relph, CEO/CFO



Certification of Principal Executive Officer and Principal Financial Officer
Regarding Facts and Circumstances Relating to Exchange Act Filings


I, C. Robin Relph, certify that:

1.       I have read this quarterly report on Form 10-QSB of Garuda Capital
         Corp.;

2.       Based on my knowledge, the report does not contain any untrue statement
         of a material fact or omit to state a material fact necessary to make
         the statements made, in light of the circumstances under which such
         statements were made, not misleading with respect to the period covered
         by the report.

3.       Based on my knowledge, the financial statements, and other financial
         information included in the report, fairly present in all material
         respects the financial condition, results of operations and cash flows
         of the issuer as of, and for, the periods presented in the report;

4.       I am the only certifying officer and I:

          (a)  am responsible for establishing and maintaining internal
               disclosure controls and procedures for the company;
          (b)  have designed such disclosure controls and procedures to ensure
               that material information relating to the company is made known
               to me by others within the company, particularly during the
               period in which the periodic reports are being prepared;
          (c)  have evaluated the effectiveness of the issuer's disclosure
               controls and procedures as of a date within 90 days prior to the
               report; and
          (d)  have presented in the report my conclusions about the
               effectiveness of their disclosure controls and procedures based
               on my evaluation as of that date;

5.       I have disclosed, based on our most recent evaluation to the company's
         auditors and the audit committee of the board of directors (or persons
         fulfilling the equivalent function):

          (a)  all significant deficiencies in the design or operation of
               internal controls which could adversely affect the company's
               ability to record, process, summarize, and report financial data
               and have identified for the company's auditors any material
               weaknesses in internal controls; and
          (b)  any fraud, whether or not material, that involves management or
               other employees who have a significant role in the company's
               internal controls; and


                                       16
<PAGE>

6.       I have indicated in the report whether or not there were significant
         changes in internal controls or in other factors that could
         significantly affect internal controls subsequent to the date of their
         evaluation, including any corrective actions with regard to significant
         deficiencies and material weaknesses.

BY:           /s/ C. Robin Relph
              --------------------------------
              C. Rabin Relph President and CEO
              (Principal Executive Officer and
              Principal Financial Officer)

DATE:    May 15, 2003
                                          Subscribed and sworn to
                                          before me this 15th day of May 2003

                                          /s/ G. Arnold Armstrong
                                          Notary Public
                                          My Commission Expires: At the
                                          pleasure of the queen of England.




                                       17
<PAGE>


Exhibit 99.1



                            CERTIFICATION PURSUANT TO
                             18 U.S.C. SECTION 1350,
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002



In connection with the Quarterly Report of Garuda Capital Corp. (the "Company")
on Form 10-QSB for the three month period ending March 31, 2003 as filed with
the Securities and Exchange Commission on the date hereof (the "Report"), I, C.
Robin Relph, Chief Executive Officer and Chief Financial Officer, certify,
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002, that:

         (1) The Report fully complies with the requirements of section 13(a) or
15(d) of the Securities Exchange Act of 1934; and

         (2) The information contained in the Report fairly presents, in all
material respects, the financial condition and results of operations of the
Company.



May 15, 2003               /s/ C. Robin Relph
-------------------              --------------------------------------------
                                  C. Robin Relph
                                  Chief Executive Officer
                                  Chief Financial Officer