Annual report pursuant to Section 13 and 15(d)

7. INCOME TAXES

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7. INCOME TAXES
 12 Months Ended
Mar. 31, 2012
Income Tax Disclosure [Text Block]
7.  
INCOME TAXES

Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. At March 31, 2012, the Company has a net operating loss carryforward of $531,440, which expires $8,538 in 2029, $59,039 in 2030, $389,742 in 2031 and $74,121 in 2032. Pursuant to ASC 740, the Company is required to compute tax asset benefits for net operating losses carried forward. Potential benefit of net operating losses have not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years.

The components of the net deferred tax asset are as follows:

   
March 31, 2012
 
March 31, 2011
Net operating loss  carryforword
$
 186,004
$
160,062
Valuation allowance
 
(186,004)
 
(160,062)
Net deferred tax assets
$
-
$
-

For the years ended March 31, 2012 and 2011 and for the period July 3, 2008 (inception) to March 31, 2012, a reconciliation of the statutory tax rate to the effective tax rate follows:

Statutory tax rate
35%
Increase in valuation allowance
(35%)
Effective tax rate
0%