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

                                    FORM 8-K

                                 CURRENT REPORT
     Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934




Date of Report (Date of earliest event reported)          May 2, 2003
                                                --------------------------------


                          Capital Southwest Corporation
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             (Exact name of registrant as specified in its charter)


           Texas                        811-1056                 75-1072796
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(State or other jurisdiction          (Commission              (IRS Employer
      of incorporation)               File Number)           Identification No.)


12900 Preston Road, Suite 700, Dallas, Texas                        75230
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  (Address of principal executive offices)                        (Zip Code)


Registrant's telephone number, including area code       (972) 233-8242
                                                   -----------------------------

Item 4. Changes in Registrant's Certifying Accountant - ------------------------------------------------------ (a) On May 2, 2003, KPMG LLP was dismissed as the Registrant's independent accountant. On April 24, 2003, the Audit Committee of the Board of Directors of the Registrant unanimously voted in favor of the appointment of Ernst & Young LLP to serve as the Registrant's independent accountant for the fiscal year ending March 31, 2004. (b) In connection with its audits of the two most recent fiscal years ended March 31, 2003 and during the subsequent interim period ended May 9, 2003, there have been no disagreements with KPMG LLP on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedures which disagreements if not resolved to their satisfaction would have caused them to make reference in connection with their opinion to the subject matter of the disagreement. Also, during the two most recent fiscal years and through May 9, 2003, the Registrant did not consult Ernst & Young LLP regarding any of the events described in Item 304 (a) (2) (i)- (ii) of Regulation S-K. (c) The report of KPMG LLP on the financial statement for the prior fiscal year ended March 31, 2002 contained no adverse opinion or disclaimer of opinion and the report to be issued for March 31, 2003 will most likely contain no adverse opinion or disclaimer of opinion. (d) The Registrant has requested that KPMG LLP furnish it with a letter addressed to the Securities and Exchange Commission stating whether or not it agrees with the above statements. A copy of such letter from KPMG LLP addressed to the Securities and Exchange Commission is filed as Exhibit 16.1 to this Form 8-K. 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 hereunto duly authorized. Capital Southwest Corporation ----------------------------- (Registrant) Date: May 9, 2003 ----------- By: /s/ Susan K. Hodgson -------------------------- Susan K. Hodgson Secretary - Treasurer

                                                                    EXHIBIT 16.1

May 9, 2003



Securities and Exchange Commission
Washington, D.C. 20549


Ladies and Gentlemen:

We are currently  principal  accountants for Capital Southwest  Corporation and,
under the date of April 19,  2002,  we  reported on the  consolidated  financial
statements of Capital Southwest  Corporation as of and for the years ended March
31, 2002 and 2001.  On May 2, 2003,  we were  notified  that  Capital  Southwest
Corporation  engaged Ernst & Young LLP as its principal  accountant for the year
ending  March 31, 2004 and that the  auditor-client  relationship  with KPMG LLP
will  cease upon  completion  of the audit of  Capital  Southwest  Corporation's
consolidated  financial  statements as of and for the year ended March 31, 2003,
and  the  issuance  of our  report  thereon.  We  have  read  Capital  Southwest
Corporation's  statements  included  under  Item 4 of its Form 8-K  dated May 9,
2003, and we agree with such statements, except that we are not in a position to
agree or disagree with Capital Southwest  Corporation's  statement that on April
24,  2003,  the Audit  Committee  of the Board of  Directors  of the  Registrant
unanimously  voted in favor of the  appointment of Ernst & Young LLP to serve as
the  Registrant's  independent  accountant  for the fiscal year ending March 31,
2004 and we are not in a position to agree or disagree  with  Capital  Southwest
Corporation's statement that during the two most recent fiscal years and through
May 9, 2003,  Ernst & Young LLP was not  consulted  regarding  any of the events
described  in Item  304(a)(2)(i)-(ii)  of  Regulation  S-K. We are also not in a
position to agree or disagree  with Capital  Southwest  Corporation's  statement
that the  report to be issued  for March 31,  2003 will most  likely  contain no
adverse opinion or disclaimer of opinion.



Very truly yours,

KPMG LLP