UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             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       March 31, 2002
                               --------------------------------------

( )  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             000-30927
                       ------------------------------



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

         Nevada                       0 - 30927                   980209053
----------------------------   ------------------------     -------------------
(State or other jurisdiction   (Commission File Number)     (IRS Employer ID #)
     of incorporation)


#502 - 1978 Vine Street, Vancouver, B.C., Canada                    V6K 4S1
-------------------------------------------------              -----------------
(Address of principal executive offices)                           (Zip Code)


Registrant's telephone number, including area code  604-233-6453
                                                    ------------

                     1895 26th Street, West Vancouver, B.C.
        ----------------------------------------------------------------
          (Former name or former address, 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
required to file such reports), Yes [x ] No [ ] and (2) has been subject to such
filing requirements for the past 90 days. Yes [x ] No [ ]


                      APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the last practicable date

                  Class                 Outstanding as of March 31, 2002
                ---------             -------------------------------------
           Common  Stock, $0.001                      1,247,575




<PAGE>
                         PART I - FINANCIAL INFORMATION

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

                          ITEM 1. FINANCIAL STATEMENTS

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



The  accompanying  balance  sheets of Garuda  Capital Corp.  (development  stage
company) at March 31, 2002 and June 30, 2001,  and the  statements of operations
for the three and nine months  ended March 31, 2002 and 2001 and the period July
8, 1997 (date of inception)  to March 31, 2002,  and the statement of cash flows
for the nine months  ended March 31, 2002 and 2001,  and the period from July 8,
1997 to 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 generally accepted accounting  principles.  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,  2002,  are not  necessarily
indicative  of the  results  that can be  expected  for the year ending June 30,
2002.


<PAGE>
<TABLE>
<CAPTION>


                              GARUDA CAPITAL CORP.
                         (formerly Vanstar Films, Inc.)
                           (Development Stage Company)
                                 BALANCE SHEETS
                        March 31, 2002 and June 30, 2001

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

                                                            Mar 31,       June 30,
                                                             2002           2001
                                                         -----------    -----------
<S>                                                      <C>            <C>
ASSETS

CURRENT ASSETS

   Bank                                                  $      --      $       520

Deposits for acquisition of:
   Hagensborg Foods Ltd.                                     593,734           --

Advances to:
   Hagensborg Foods Ltd.                                     470,000           --
   Garuda Ventures Canada Inc.                               100,000           --
                                                         -----------    -----------
  Total Current Assets                                   $ 1,163,734    $       520
                                                         ===========    ===========

LIABILITIES AND STOCKHOLDERS' DEFICIENCY

CURRENT LIABILITIES

   Bank indebtedness                                     $     1,400    $      --
   Accounts payable                                           17,271         42,957
   Accounts payable - related parties                          9,375         27,793
                                                         -----------    -----------
   Total Current Liabilities                                  28,046         70,750
                                                         -----------    -----------
STOCKHOLDERS'  EQUITY

    Preferred Stock
       10,000,000 shares authorized at $0.001 par
       value; none issued and outstanding                       --             --
   Common stock
        50,000,000 shares authorized  at $0.001 par
        value; 1,247,575 shares issued and outstanding         5,952          4,952

   Capital in excess of par value                            254,799        155,799

   Foreign currency translation adjustment                     4,598           (344)

   Subscription paid for common shares                     1,151,500           --

   Deficit accumulated during the development stage         (281,161)      (230,637)
                                                         -----------    -----------

       Total Stockholders' Equity (deficiency)             1,135,688        (70,230)
                                                         -----------    -----------
                                                         $ 1,163,734    $       520
                                                         ===========    ===========

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

                                      - 2 -
</TABLE>

<PAGE>
<TABLE>
<CAPTION>


                                           GARUDA CAPITAL CORP.
                                      (formerly Vanstar Films, Inc.)
                                        (Development Stage Company)
                                         STATEMENTS OF OPERATIONS
                    For the Three and Nine Months Ended March 31, 2002 and 2001 and the
                         Period July 8, 1997 (Date of Inception) to March 31, 2002

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

                                  Three Months                    Nine Months
                          -------------------------------   -------------------------   July 8, 1997
                               Mar 31         Mar 31         Mar 31         Mar 31   (Date of Inception)
                                2002           2001           2002           2001     to  Mar  31, 2002
                          ------------------------------------------------------------------------------
<S>                       <C>               <C>            <C>            <C>          <C>
REVENUES                     $      --      $      --      $      --      $      --      $       136

EXPENSES                          40,294         49,924         50,526         52,764        281,299
                             -----------    -----------    -----------    -----------    -----------

NET LOSS                         (40,294)       (49,924)       (50,526)       (52,764)      (281,163)

COMPREHENSIVE GAIN

   Gain from foreign
     currency translation           --             --             --             --            4,598

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

NET COMPREHENSIVE LOSS       $   (40,294)   $   (49,924)   $   (50,526)   $   (52,764)   $  (276,565)
                             ===========    ===========    ===========    ===========    ===========


NET LOSS PER COMMON SHARE

   Basic                     $      --      $      --      $      --      $      --
                             -----------    -----------    -----------    -----------




AVERAGE OUTSTANDING SHARES


  Basic                        4,951,500      4,951,500      4,951,500      4,951,500
                             -----------    -----------    -----------    -----------

</TABLE>



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

                                                   - 3 -
<PAGE>
<TABLE>
<CAPTION>

                                    GARUDA CAPITAL CORP.
                               (formerly Vanstar Films, Inc.)
                                (Development Stage Company)
                                  STATEMENTS OF CASH FLOWS
            For the Three and Nine Months Ended March 31, 2002 and 2001 and the
                 Period July 8, 1997 (Date of Inception) to March 31, 2002
-------------------------------------------------------------------------------------------

                                                                             July 8, 1997
                                                  Mar 31,       Mar 31,  (Date of Inception)
                                                   2002          2001      to Mar 31, 2002
                                               -----------    -----------  ---------------
<S>                                            <C>            <C>          <C>

CASH FLOWS FROM
   OPERATING ACTIVITIES

   Net loss                                    $   (50,524)   $   (52,764)   $  (281,161)

   Adjustments to reconcile net loss to
       net cash provided by operating
       activities

       Changes in accounts payable                 (44,104)        52,319         26,646
       Contributions to capital - expenses            --             --            9,655
     Foreign currency translations                   4,942           --            4,598
                                               -----------    -----------    -----------

     Net Decrease in Cash From Operations          (89,686)          (445)      (240,262)
                                               -----------    -----------    -----------

CASH FLOWS FROM INVESTING
   ACTIVITIES

     Advances to related companies                (593,734)          --         (593,734)
     Loans to related companies                   (570,000)          --         (570,000)
                                               -----------    -----------    -----------
                                                (1,163,734)          --       (1,163,734)

CASH FLOWS FROM FINANCING
   ACTIVITIES

     Proceeds from issuance of common stock        100,000           --          251,096
     Proceeds from share subscriptions           1,151,500           --        1,151,500
                                               -----------    -----------    -----------
                                                 1,251,500           --        1,402,596
                                               -----------    -----------    -----------

   Net Decrease in Cash                             (1,920)          (445)        (1,400)

   Cash at Beginning of Period                         520          1,009           --
                                               -----------    -----------    -----------

   Cash (bank indebtedness) at End of Period   $    (1,400)   $       564    $    (1,400)
                                               ===========    ===========    ===========
</TABLE>



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

                                           - 4 -
<PAGE>



                              GARUDA CAPITAL CORP.
                         (formerly Vanstar Films, Inc.)
                           (Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
       For the Three and Nine Months Ended March 31, 2002 and 2001 and the
            Period July 8, 1997 (Date of Inception) to March 31, 2002
--------------------------------------------------------------------------------

1. ORGANIZATION

The  Company was  incorporated  under the laws of the State of Nevada on July 8,
1997  with  authorized  common  stock of  50,000,000  shares  at $.001 par value
and10,000,000 shares of preferred stock at $.001 par value.

The preferred stock will have rights and preferences as may be determined by the
Board of Directors when issued.

Since its  inception  the  company  completed  private  placement  offerings  of
4,865,500 shares of its common capital stock.

The Company has been in the development stage since inception.


2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Accounting Methods
------------------

The  Company  recognizes  income and  expenses  based on the  accrual  method of
accounting.

Dividend Policy
---------------

The Company has not yet adopted a policy regarding payment of dividends.

Income Taxes
-----------------

At March 31,  2002,  the  Company  had a net  operating  loss  carry  forward of
$281,163.  The tax benefit of $72,260 from the loss carry forward has been fully
offset by a  valuation  reserve  because  the use of the future  tax  benefit is
undeterminable  since the Company has no operations.  The operating loss expires
in 2022.

Basic and Diluted Net Income (Loss) Per Share
---------------------------------------------

Basic net income  (loss) per share  amounts are  computed  based on the weighted
average  number of shares  actually  outstanding.  Diluted net income (loss) per
share amounts are computed  using the weighted  average  number of common shares
and common  equivalent  shares  outstanding  as if shares had been issued on the
exercise of the preferred share rights unless the exercise becomes  antidilutive
and then only the basic per share amounts are shown in the report.

Comprehensive Income
--------------------

The Company  adopted  Statement of Financial  Accounting  Standards No. 130. The
adoption of this standard had no impact on the total stockholder's deficiency.

                                     - 5 -


<PAGE>

                              GARUDA CAPITAL CORP.
                         (formerly Vanstar Films, Inc.)
                           (Development Stage Company)
                    NOTES TO FINANCIAL STATEMENTS (continued)
           For the Three and Nine Months Ended March 31, 2002 and 2001
       and the Period July 8, 1997 (Date of Inception) to March 31, 2002
--------------------------------------------------------------------------------


2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Recent Accounting Pronouncements
--------------------------------

The  Company  does not  expect  that the  adoption  of other  recent  accounting
pronouncements will have a material impact on its financial statements.

Foreign Currency Translation
----------------------------

The  transactions  of the Company were  completed in Canadian  currency which is
considered to be the  functional  currency.  For reporting  purposes the balance
sheet  accounts  have been  translated  to US currency at the  exchange  rate in
effect at the time,  and the  operating  accounts at the average rates in effect
during the year. The gain or loss is included in the operating statement.

Financial Instruments
---------------------

The  carrying  amounts of  financial  instruments,  including  cash and accounts
payable, are considered by management to be their estimated fair values.

Estimates and Assumptions
----------------------------------

Management uses estimates and assumptions in preparing  financial  statements in
accordance with generally accepted  accounting  principles.  Those estimates and
assumptions  affect the  reported  amounts of the  assets and  liabilities,  the
disclosure of contingent  assets and liabilities,  and the reported revenues and
expenses.  Actual  results  could vary from the  estimates  that were assumed in
preparing these financial statements.


3.  RELATED PARTY TRANSACTIONS

The Company incurred management fees of $26,000 from its directors.


4.  GOING CONCERN

Continuation  of the  Company as a going  concern is  dependent  upon  obtaining
sufficient  working capital to service its debt and for any planned activity and
the  management of the Company has developed a strategy,  which it believes will
accomplish  this objective  through  additional  equity  funding,  and long term
financing, which will enable the Company to operate for the coming year.


5.  SUBSEQUENT EVENT

On April 1, 2002 the Company acquired two separate  businesses,  both located in
Vancouver:

     o    Hagensborg  Foods  Ltd.,  a  BC  corporation,  is a  manufacturer  and
          distributor  of gourmet  food  products.  Hagensborg  was acquired for
          consideration  of  US$1,120,000  cash  for all its  outstanding  share
          capital and  liquidation  of certain  debentures  to be  allocated  as
          follows:  $600,000 for the common shares,  $100,000 for the preference
          shares and $420,000 for the retirement of the debentures.

                                      -6-
<PAGE>


                              GARUDA CAPITAL CORP.
                         (formerly Vanstar Films, Inc.)
                           (Development Stage Company)
                    NOTES TO FINANCIAL STATEMENTS (continued)
           For the Three and Nine Months Ended March 31, 2002 and 2001
       and the Period July 8, 1997 (Date of Inception) to March 31, 2002
--------------------------------------------------------------------------------


     o    Natural  Program  Inc.,  a  Nevada  corporation,  is a  developer  and
          distributor of herbal  remedies.  Natural Program Inc.was acquired for
          consideration of 500,000 shares of Garuda.

By an agreement dated April 19, 2002 HFL acquired certain branded product lines,
rights,  and all related assets from  Hagensborg  Food  Corporation  (HFC) for a
purchase  price of  US$1,000,000  with  consideration  of  $550,000  cash and an
assumption of certain bank debt totaling $450,000. HFC is a company domiciled in
the U.S.  that is in the sales,  marketing  and  distribution  business  of food
products.  With this transaction HFL has acquired all of HFC's product lines and
related assets leaving HFC with its sales,  marketing and distribution structure
and a non-exclusive distribution right to HFL's products.








                           ITEM 2. PLAN OF OPERATIONS

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

The  Company's  management  intends to continue  developing  its interest in the
field  of film  development  and  production  service  but it does  not have the
working capital to be successful in this effort.

Continuation  of the Company as a going concern is dependent  upon obtaining the
necessary  working  capital  for its planned  activity.  The  management  of the
Company  has  developed  a  strategy,  which they  believe can obtain the needed
working capital through  additional equity funding and long term debt which will
enable the Company to be successful in its planned efforts.

Liquidity and Capital Resources
---------------------------------------

The  Company  will need  additional  working  capital  to  finance  its  planned
activity.

Results of Operations
--------------------------

The Company has had no operations during this reporting period.








                                      - 7 -


<PAGE>


                           ITEM 2. PLAN OF OPERATIONS


The  Company was  organized  to  establish  itself in the film  industry.  These
efforts  were  abandoned  in September  2001 and since then the  Company's  sole
business has been to investigate new business opportunities.  During the quarter
the Company undertook a major  re-organization by changing its name from Vanstar
Films, Inc. to Garuda Capital Corp.,  consolidated the outstanding share capital
on a 20:1 basis and  undertook two separate  financings:  the first for $100,000
and the second which has not yet closed for a maximum of $2,500,000. By separate
agreements Garuda has agreed to wholly acquire three separate companies on April
1, 2002:  Hagensborg  Foods Ltd  (Hagensborg),  a  manufacturer  and marketer of
gourmet  foods;  Natural  Program Inc.  (NP) a developer  and marketer of herbal
remedies;  and Garuda  Ventures Canada Inc. a shell company that will be used to
hold surplus funds.

Pursuant to the Hagensborg  Agreement,  the Company has agreed to acquire all of
the issued and outstanding common shares of Hagensborg,  being 6,894,000 shares,
for the  consideration  of US  $600,000  and all of the issued  and  outstanding
preferred shares of Hagensborg,  being 240,000 shares,  for the consideration of
US $100,000.  Pursuant to the NP Agreement, the Issuer has agreed to acquire all
of the issued and  outstanding  shares of NP, being  15,500  common  shares,  in
exchange for 500,000 common shares of the Issuer.



History and General Development of Business of Hagensborg Foods Ltd.


Hagensborg Foods Ltd. ("Hagensborg") was incorporated in the Province of British
Columbia in May, 1996 under the name "Celestial Chocolates". It changed its name
to "Hagensborg Foods Limited" in 1998.


Hagensborg  is in  the  business  of  manufacturing  and  marketing  of  gourmet
chocolates.  Its chocolate  production plant which is located in Vancouver has a
production  capacity of 9 tons of chocolate  per day or 8 kilograms  per minute.
Hagensborg serves wholesale and retails customers both in Canada and the US. All
products are directly shipped from Hagensborg's warehouse.


History and General Development of Business of Natural Program Inc.

Natural Program Inc. was incorporated in the State of Nevada on July 7, 2000. In
January 2002,  Natural Program Ltd., a BC company  incorporated on July 7, 2000,
was acquired by Natural Program Inc. Operations remain in Vancouver.

Natural Program is in the business of developing and marketing  herbal remedies.
"Natural  Program Herbal  Laboratories"  operates a Chinese  herbal  pharmacy to
dispense high quality  Chinese herbs to  practitioners  and markets a whole-sale
line of herbal remedies under the Natural Program name. To date, Natural Program
has completed the development of the first complete  product line which is being
test marketed in Vancouver-based health food stores and pharmacies.

Natural  Program's  main  assets  are its  proprietary  formulations  which  are
developed  in-house.  Raw  materials are sourced  internationally  to ensure the
highest possible quality.  Large-scale  manufacturing is currently outsourced to
specialized   providers  who  comply  with  GMP  standards  (Good  Manufacturing
Practices).  Natural  Program's  products  are  marketed  in the US,  Canada and
Europe.

Currently,  Natural  Program's  main product line consists of five liquid herbal
remedies  called the "Rescue  Line" which are designed to improve the quality of
day-to-day life, offering solutions for common health problems. The formulas are
sold in 2 oz. (59.1ml) bottles and retail for approximately CDN$20.



                                      -8-
<PAGE>

Liquidity  and Capital Resources

During the quarter the Company  completed a first private  placement of $100,000
and  received  a total of  $1,151,500  on a second  private  placement  that was
announced to have a maximum of $2,500,000.  Of those funds a total of $1,163,734
was advanced to the three  imminent  wholly-owned  subsidiaries.  The Company is
still in the  development  stage although  Hagensborg  should achieve a positive
cash flow for its next year.


Results of Operations

Total expenses for the period were $40,294 which was largely  management,  legal
and accounting fees. Those expenses are down from the comparable  period in 2001
which had a total of $49,924. The Company had no operations during this period.





                               PART 2 - SIGNATURES

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

                                   SIGNATURES

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


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned there unto duly authorized.



                                                GARUDA CAPITAL CORP.
                                                     [Registrant]




                                                    /s/ John E. Curry
                                          --------------------------------------
Date May 15, 2002                              John E. Curry, C.A.,  CFO






                                      - 9 -