U.S. Securities and Exchange Commission
                             Washington, D.C. 20549

                                    Form 10-Q


(Mark One)

[X]      QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
         ACT OF 1934

                For the quarterly period ended September 30, 2002

[ ]      TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

       For the transition period from __________________ to ______________

Commission file number: 1-14219

                             Stelax Industries Ltd.
-------------------------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)

British Columbia                                        None
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(State or other jurisdiction               (IRS Employer Identification No.)
 of incorporation or organization)

4287-A Belt Line Rd. #195, Addison, TX                        75001
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(Address of principal executive offices)                (Zip Code)

                                 (972) 233-6041
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                         (Registrant's telephone number)


                 4004 Beltline Road, Suite 107, Dallas TX 75244
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(Former name, former address and former fiscal year, if changed since last
report)

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


                      APPLICABLE ONLY TO CORPORATE ISSUERS

         State the number of shares outstanding of each of the issuer's classes
of common equity, as of September 30, 2002: 47,948,038















                         Part 1 - FINANCIAL INFORMATION
Item 1. Financial Statements.Stelax Industries Ltd.
                             Stelax Industries Ltd.
                           CONSOLIDATED BALANCE SHEETS
                      (Presented in United States dollars)

                                     ASSETS



                                                                    Sep-30                    Mar-31
                                                                     2002                      2002
                                                                -------------             --------------
                                                                 ( Unaudited )

CURRENT ASSETS
                                                                                    
   Cash and cash equivalents                                    $       2,655             $        4,102
   Note Receivable                                                    141,480                    141,480
   Inventory-Raw Materials
     Work in Progress                                                       0                          0
     Finished Goods                                                         0                          0
   Accounts Receivable- Trade                                               0                          0
     (Allowance for doubtful accounts at Sep 30 and
     March 31 2002, $0 and $0 respectively )
   Receivables from related parties                                     3,000                      3,000
   Prepaid and other current assets                                    10,687                          0
                                                                 -------------             --------------

   Total Current Assets                                               157,822                    148,582

PROPERTY & EQUIPMENT - AT COST
   Plant & Machinery                                                        0                          0
   Building                                                                 0                          0
   Land                                                                     0                          0
                                                                 ------------              --------------
                                                                            0                          0
   Accumulated Depreciation                                                 0                          0
   Total Property and Equipment                                             0                          0
                                                                 -------------             --------------

INTANGIBLE ASSETS
   (Accumulated amortisation of $0 and $0 at                                0                          0
     Sept 30 and March 31 2002 respectively

OTHER ASSETS                                                                0                    102,934
                                                                 -------------             --------------

TOTAL ASSETS                                                          157,822                    251,516
                                                                 =============             ==============




                       See notes to financial statements

                                       1



                             Stelax Industries Ltd.
                           CONSOLIDATED BALANCE SHEETS
                      (Presented in United States Dollars)



LIABILITIES AND STOCKHOLDERS EQUITY
                                                                    Sep-30                    Mar-31
                                                                     2002                      2002
                                                                -------------             --------------
                                                                  (Unaudited)

CURRENT LIABILTIES
                                                                                    
   Accounts Payable                                             $     327,041             $      206,653
   Payable to Related Parties                                         488,295                  1,035,730
   Accrued Interest                                                   600,711                    433,998
   Note Payable - short term                                        3,645,833                  3,645,833
                                                                 ------------              --------------
                                                                    5,061,880                  5,322,214

NOTE PAYABLE - LONG TERM                                                    0                          0

STOCKHOLDERS EQUITY
   Common stock - 50,000,000 shares authorized
     no stated par value; issued and outstanding
     47,948,038 & 43,184,775 shares at Sep 30
     and March 31 2002 respectively.                               26,353,178                 25,281,717
   Cumulative translation adjustments                                  83,684                     83,684
   Accumulated deficit                                            (31,340,917)               (30,436,099)
   Total Stockholders Equity                                       (4,904,058)                (5,070,698)
                                                                 ------------              --------------

TOTAL LIABILITIES AND STOCKHOLDERS EQUITY                       $     157,822             $      251,516
                                                                 ============              ==============




                       See notes to financial statements

                                       2



                              Stelax Industries Ltd
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                      (Presented in United States dollars)
                                    Unaudited



                                                 Three Months Ended               Six Months Ended
                                        ---------------------------------    -----------------------------
                                              Sep-30,          Sep-30,           Sep-30,          Sep-30,
                                               2002             2001              2002             2001
                                        ---------------     -------------    -------------   -------------

                                                                                  
Sales                                   $           0       $   266,338     $           0     $     532,835
Cost of Sales                                       0           650,584                 0         1,143,561
                                        -------------        -----------     ------------      ------------
Gross Loss                                          0          (384,246)                0          (610,726)

Selling, general and administrative
     Expenses (including depreciation
      and amortisation of $0 and
     $331,850 for the six months
     ending Sept 30 2002
     and Sept 30 2001 respectively )          519,352           560,590           716,726         1,013,502
                                        -------------        -----------     ------------      ------------

Loss from operations                         (519,352)         (944,836)         (716,724)       (1,624,228)

Other Income (Expense)
     Interest income                                0               914                 0             2,503
     Interest expense                         (94,662)          (97,800)         (188,094)         (204,765)
                                        -------------        -----------     ------------      ------------

Net Loss                                $    (614,014)      $(1,041,722)    $    (904,818)    $ (1,826,490)
                                        =============        ==========      ============       ===========

Weighted average shares
of common stock                            45,694,944        39,693,036        44,446,718        39,497,234
                                        =============        ==========      ============      ============

Net loss per share                      $      (0.013)      $    (0.026)    $      (0.020)    $     (0.046)
                                        =============        ==========      ============      ============



                       See notes to financial statements

                                       3



                              Stelax Industries Ltd
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                      (Presented in United States dollars)
                                    Unaudited



                                                                              Six Months Ended
                                                                ------------------------------------------
                                                                    Sep-30                    Sep-30
                                                                     2002                      2001
                                                                -------------             --------------

OPERATING ACTIVITY
                                                                                    
   Net Loss                                                     $    (904,818)            $   (1,826,490)
   Adjustments to reconcile net loss to net cash provided
     by operating activities :
     Depreciation & amortization                                            0                    331,850
     Foreign currency transaction gain (Loss)                               0                    (11,142)
     Changes in operating assets and liabilities :
     Decrease (increase) in receivables                                     0                    (25,961)
     Decrease (increase) in inventory & other assets                   92,247                     79,396
     Increase (decrease) in accounts payable and
       accrued iinterest                                             (260,334)                  (308,110)
                                                                 ------------              --------------

   Net Cash (used) provided by operating activities                (1,072,905)                (1,144,237)

INVESTING ACTIVITIES
   Purchase of property, equipment and intangibles                          0                    (13,679)

Net cash used by investing activities                                       0                    (13,679)

FINANCING ACTIVITIES
   Common stock issue                                               1,071,458                    923,380
   Note Payable issue (payment)                                                                 (520,833)
                                                                 ------------              --------------

                                                                    1,191,079                    402,547

Increase (decrease) in cash and cash equivalents                       (1,447)                  (755,369)

Cash & cash equivalents at beginning of period                          4,102                    800,696
                                                                 ------------              --------------

Cash equivalents at end of period                                       2,655                     45,327
                                                                 ------------              --------------

Interest paid                                                               0                    124,513
                                                                 ------------              --------------

Income taxes paid                                                           0                          0
                                                                 ------------              --------------





                       See notes to financial statements

                                       4



                             STELAX INDUSTRIES LTD.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                      (Presented in United States Dollars)
                                    Unaudited

(1)  INTERIM FINANCIAL STATEMENTS

In the opinion of management, the interim financial statements reflect all
adjustments necessary to a fair statement of the results for the interim periods
presented. The results for the six months ended September 30, 2002 are not
necessarily indicative of results to be expected for the entire year. These
financial statements, notes and analyses should be read in conjunction with the
Company's annual financials for the fiscal year ended March 31, 2002.

(2)  LOSS PER SHARE

Loss per share was based on the weighted average number of common shares of
44,446,718 and 44,575,256 outstanding during the six month period ended
September 30, 2002 and 2001, respectively.

(3)  INCOME TAXES

The Company has net operating loss carry forwards of approximately $420,000 for
Canada and $0 for the U.K.

(4)  RELATED PARTY TRANSACTIONS

As of September 30, 2002 funds are owed by the Company totaling $488,295 to the
President of the Company and his affiliates. As of March 31, 2002, funds owed by
the Company totaled $1,035,730 to the President of the Company and his
affiliates.

During the quarter ended September 2002, the President of the Company and his
affiliates converted $825,000 of debt into common stock of the Company which
resulted in issuing 3,750,000 shares.

(5)  STOCKHOLDERS' EQUITY

During the quarter ended September 2002, 1,013,263 common shares were issued in
exchange for consulting services of $246,458.

(6)  SUBSEQUENT TRANSACTION

The Company remains in discussion with Wells Fargo to acquire from Wells Fargo
the Aberdeen facility and technology for $1,750,000 plus a warrant to purchase
500,000 common shares. The Company is seeking up to $15,000,000 to pay this
obligation as well as purchase a facility in Alabama to commence additional
operations.


                                       5



Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.

Forward-Looking Information

The Management's Discussion and Analysis of Financial Condition and Results of
Operations and other sections of the Form 10-Q contain forward-looking
information. The forward-looking information involves risks and uncertainties
that are based on current expectations, estimates, and projections about the
Company's business, management's beliefs and assumptions made by management.
Words such as "expects", "anticipates", "intends", "plans", "believes", "seeks",
"estimates", and variations of such words and similar expressions are intended
to identify such forward-looking information. Therefore, actual outcomes and
results may differ materially from what is expressed or forecasted in such
forward-looking information due to numerous factors, including, but not limited
to, availability of financing for operations, successful performance of internal
operations, impact of competition and other risks detailed below as well as
those discussed elsewhere in this Form 10-QSB and from time to time in the
Company's Securities and Exchange Commission filings and reports. In addition,
general economic and market conditions and growth rates could affect such
statements.

General - Liquidity and Capital Resources

In fiscal 1999 and 2000 the Company ceased production and sales of stainless
steel and developed the market for its Nuovinox product, much of which involved
extensive testing for United States federal and state transportation authorities
to demonstrate the utility of the Nuovinox product in bridges and highways. By
the end of fiscal 2000, this process was sufficiently successful and complete to
begin sales. With the Company's plant facilities unencumbered, in July 2000 the
Company's United States subsidiary entered into a Loan and Security Agreement
with Bank of America Commercial Finance Corporation (the "Loan Agreement")
whereby the Company obtained a Term Loan as well as Revolving Credit and Credit
Accommodations. The maximum amount that can be borrowed under the Loan Agreement
is $5,750,000.

The proceeds from the term loan were used to fund operational losses to the
extent necessary to cover the start up period for Nuovinox sales and to finance
inventory and receivables to the extent that the Company will need funds in
excess of borrowing under the Term Loan for inventory and receivables.

Financially, the Company had to achieve positive cash flow, including debt
service, from the capital provided from the Loan Agreement. This goal seemed
achievable because the Nuovinox product had received strong acceptance and a
large number of orders. Production of Nuovinox began in large quantities in the
first quarter 2001, the delay being caused by the development of processes
unique to the product, development that had not been completed and implemented
successfully when the Company's subsidiary entered into receivership in March
2002.

In fiscal 1999, at the end of which the Company ceased production of stainless
steel, the Company incurred a loss of $3,150,498 and in fiscal 2000 incurred a
loss of $2,279,926. These losses continued as increased production began on the
Nuovinox product in fiscal 2001 when the Company incurred a loss of $2,902,573.
Because the Company incurs a substantial amount of depreciation and
amortization, $506,050 in fiscal 1999 $538,673 in fiscal 2000, and $555,231 in
fiscal 2001, the cash losses for fiscal 1999, 2000 and 2001 were approximately
$2,640,000, $1,740,000 and $2,450,000, respectively.

In fiscal 1999 the cash loss of approximately $2,640,000 was principally funded
through the liquidation of current assets. Between March 31, 1998, and March 31,
1999, the Company's cash position decreased from $852,892 to $42,973,
receivables decreased from $597,426 to $19,505 and inventories decreased from
$948,093 to $195,663, a reduction in current assets of $2,140,271. The amount of
the cash loss that was not funded through the liquidation of current assets as
well as some increases in property were funded through sales of common stock
that netted $726,670.

In fiscal 2000 the cash loss of approximately $1,740,000 was funded through
financing activities. A related party loaned the Company approximately
$1,000,000 and the Company issued Common Stock, the sale of which resulted in
net proceeds to the Company of approximately $800,000.

In fiscal 2001, cash losses were funded through a line of credit.

In fiscal 2002, there were no other sources of funds to cover cash losses and in
March 2002, the U.K. subsidiary entered into receivership.

                                       6



The Registrant has entered into a letter of intent with Wells Fargo Business
Credit, Inc. to acquire for $1,750,000 all of the assets of Wells Fargo Business
Credit Inc. which that entity acquired from the UK receivership of the Company's
then subsidiary. The letter of intent also contemplates granting to Wells Fargo
Business Credit Inc. a warrant to purchase 500,000 shares of the Registrant's
Common Stock. The Registrant anticipates entering into a formal agreement in
November or December 2002 to fund the reacquisition of these assets from Wells
Fargo and obtain operating capital and commence production soon thereafter.

Nonetheless, the Company's audit report is qualified because of the concern over
the Company's ability to continue as a going concern.

Six Months ended September 30, 2002, compared to six months ended September 30,
2001

The Company's revenues were $ zero in the six months ended September 30, 2002
due to the U.K. subsidiary being in receivership and not operational under the
control of Stelax Industries Ltd. Revenues in the quarter September 30, 2001 had
been $ 532,835.

The Company's losses arising within the remainder of the Group amounted to
$1,024,439 of which $188,094 was interest expense. In the six months ended
September 30, 2001 the respective figures were a loss of $1,826,490 and $204,765
interest.

Six Months ended June 30, 2001, compared to quarter ended June 30, 2000

The Company's revenues increased to $532,835 in the later period compared to
revenues of $188,993 in the earlier period. The Company's revenues for the six
months ended September 30, 2001, reflect the first successful volume production
of the Nuovinox product. Revenues in each of the quarters since June 30, 2000,
to the end of fiscal 2001, which ended March 31, 2001, have been significantly
below $100,000, and revenues for fiscal 2001 were approximately $300,000. The
revenues for the six month period ended September 30, 2001, reflect the
Company's ability to produce Nuovinox successfully to meet demand for the
product.

Nonetheless, the Company lost $1,826,490 in the first six months of fiscal 2002.
Revenues only began to occur in the later part of the quarter. Consequently,
labor costs and other fixed costs that the Company had in place throughout the
quarter were absorbed by relatively small amounts of revenue. General and
administrative expenses increased significantly as the Company began to staff to
levels required to support full production. Finally, the Company incurred
significant interest expense of approximately in the June first six months of
fiscal 2002, essentially interest expense on the Loan Agreement.

Production of Nuovinox was limited in the second quarter 2002 because the
Company lacked financial resources to meet demand.


                                       7




Inflation

The Company's operations may be impacted by the effects of inflation and
changing prices as increased prices may reduce the demand for steel products.
Additionally, the price of nickel has direct impact on the Company as nickel is
an integral component to the price of the stainless steel utilized in Nuovinox.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

The Company does not engage in any hedging activities. In particular, the
Company does not hedge its sales for currency fluctuations, and, accordingly,
does not acquire market risk sensitive instruments. Over the last two fiscal
years, market risks have been negligible because of the small amount of
operations in which the Company has engaged.

The Company's primary market risk is anticipated to be a currency exchange rate
risk and the Company does not, at the present time, anticipate engaging in
management of that risk. For the next fiscal year, the Company's operations will
be principally conducted in the United Kingdom with sales anticipated in the
United States and Canada. In addition to currency market risk resulting from
trade accounts receivable, the Company's loan with Bank of America is
denominated in U.S. Dollars. The amounts available to the Company under the Bank
of America loan agreement are principally based upon assets located in the
United Kingdom, and a large increase in the value of the Dollar relative to the
Pound could diminish the amounts that could be available under that loan
agreement. A significant increase in the Pound relative to Dollar would make
United States trade receivables worth less in the United Kingdom, decreasing
profit margins for products produced in the United Kingdom and sold in the
United States.

                                       8




                                    PART - II

Item 6. Exhibits and Reports on Form 8-K

None



                                       9



                                   SIGNATURES

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

 Stelax Industries, Ltd.


Dated: November 19, 2002                        /s/ Harmon S. Hardy
                                                -------------------
                                                Harmon S. Hardy, President and
                                                Principal Financial Officer


                                       10



                                  CERTIFICATION

I, Harmon S. Hardy, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Stelax Industries, Ltd.

2. Based on my knowledge, this quarterly 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
   this quarterly report;

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

4. The registrant's other certifying officers and I are responsible for
   establishing and maintaining disclosure controls and procedures (as defined
   in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

(a) designed such disclosure controls and procedures to ensure that material
   information relating to the registrant, including its consolidated
   subsidiaries, is made known to us by others within those entities,
   particularly during the period in which this quarterly report is being
   prepared;

(b) evaluated the effectiveness of the registrant's disclosure controls and
   procedures as of a date within 90 days prior to the filing date of this
   quarterly report (the "Evaluation Date"); and

(c) presented in this quarterly report our conclusions about the effectiveness
   of the disclosure controls and procedures based on our evaluation as of the
   Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
   most recent evaluation, to the registrant's auditors and the audit committee
   of registrant's board of directors (or persons performing the equivalent
   function):

(a) all significant deficiencies in the design or operation of internal controls
   which could adversely affect the registrant's ability to record, process,
   summarize and report financial data and have identified for the registrant'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 registrant's internal controls;
   and

6. The registrant's other certifying officers and I have indicated in this
   quarterly 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 our most recent evaluation, including any
   corrective actions with regard to significant deficiencies and material
   weaknesses.

     Date:  November 19, 2002

                                        Harmon S. Hardy

                                        /s/ Harmon S. Hardy
                                        ---------------------------------------
                                        President and Chief Financial Officer





                                       11