UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
	ACT OF 1934

For the quarterly period ended:
June 30, 2011

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

For the transition period from: _____________ to _____________

SHELRON GROUP, INC.

(Exact name of registrant as specified in its charter)

Delaware	000-31176	04-2968425
(State or Other Jurisdiction	(Commission	(I.R.S. Employer
of Incorporation)	File Number)	Identification No.)

39 Broadway, Suite 3010, New York, NY 10006

(Address of Principal Executive Office) (Zip Code)

(516) 620-6794

(Registrant’s telephone number, including area code)

Not Applicable

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), and (2) has been subject to such filing requirements for the past 90 days.
			x	Yes	o	No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.

Large accelerated filer	o	Accelerated filer			o
Non-accelerated filer	o	Smaller reporting company			x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).			o	Yes	x	No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of August 15, 2011, there were 308,377,492 shares of common stock outstanding.

APPLICABLE ONLY TO REGISTRANTS 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 Section 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.			o	Yes	o	No

(Former name, former address and former fiscal year, if changed since last report)

SHELRON GROUP, INC.

Table of Contents

	Page
Part I. FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited):

Balance Sheets at June 30, 2011 and December 31, 2010		2

Statements of Operations for the six months and three months ended
June 30, 2011 and 2010		3

Statements of Cash Flows for the six months ended
June 30, 2011 and 2010		4

Notes to Unaudited Financial Statements		5

Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations		8

Item 3. Quantitative and Qualitative Disclosures About Market Risk		10

Item 4. Controls and Procedures		10

Part II. OTHER INFORMATION		12

Item 1. Legal Proceedings		12

Item 1A. Risk Factors		12

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		12

Item 3. Defaults upon Senior Securities		12

Item 4. Removed and Reserved		12

Item 5. Other Information		12

Item 6. Exhibits		12

Signatures		13

Certifications

FORWARD LOOKING STATEMENTS

CERTAIN STATEMENTS MADE IN THIS QUARTERLY REPORT ON FORM 10-Q ARE "FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. FORWARD-LOOKING STATEMENTS CAN BE IDENTIFIED BY TERMINOLOGY SUCH AS "MAY", "WILL", "SHOULD", "EXPECTS", "INTENDS", "ANTICIPATES", "BELIEVES", "ESTIMATES", "PREDICTS", OR "CONTINUE" OR THE NEGATIVE OF THESE TERMS OR OTHER COMPARABLE TERMINOLOGY. BECAUSE FORWARD-LOOKING STATEMENTS INVOLVE RISKS AND UNCERTAINTIES, THERE ARE IMPORTANT FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED BY THESE FORWARD-LOOKING STATEMENTS. ALTHOUGH THE COMPANY BELIEVES THAT EXPECTATIONS REFLECTED IN THE FORWARD-LOOKING STATEMENTS ARE REASONABLE, IT CANNOT GUARANTEE FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS. MOREOVER, NEITHER THE COMPANY NOR ANY OTHER PERSON ASSUMES RESPONSIBILITY FOR THE ACCURACY AND COMPLETENESS OF THESE FORWARD-LOOKING STATEMENTS. THE COMPANY IS UNDER NO DUTY TO UPDATE ANY FORWARD-LOOKING STATEMENTS AFTER THE DATE OF THIS REPORT TO CONFORM SUCH STATEMENTS TO ACTUAL RESULTS.

SHELRON GROUP INC.
BALANCE SHEETS

	June 30,			December 31,
	2011			2010
	(Unaudited)
ASSETS

Current Assets:
Cash	$	-		$	54



Deposit on software license		900,000			-


Total Assets	$	900,000		$	54

LIABILITIES AND STOCKHOLDERS' DEFICIENCY

Current Liabilities:
Accounts payable and accrued expenses	$	117,036		$	104,986
Due to stockholders		272,065			440,594
Convertible note payable		50,000			50,000


Total Current Liabilities		439,101			595,580

Liability for common stock to be issued to officer		205,740			205,740
Software license payable		900,000

Total Liabilities		1,544,841			801,320

Commitments

Stockholders' Deficiency:
Series A convertible preferred stock $0.001 par value
per share, Authorized 1,000,000 shares;
Issued and outstanding 1,000,000 shares		1,000			1,000
Common stock, par value $0.001 par value per share
Authorized 500,000,000 shares;
Issued and outstanding 268,477,492 shares and
18,477,492 shares, respectively		268,477			18,477
Additional paid-in capital		5,497,806			5,497,806
Accumulated deficit		(6,412,124	)		(6,318,549	)

Total Stockholders' Deficiency		(644,841	)		(801,266	)

Total Liabilities and Stockholders' Deficiency	$	900,000		$	54

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

SHELRON GROUP, INC.

STATEMENTS OF OPERATIONS

(UNAUDITED)

	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2011			2010			2011			2010

Revenues	$	-		$	17,690		$	0		$	17,690

Operating Expenses:
Consulting fees		1,500			11,565			4,000			26,165
Employment compensation		39,000			39,000			78,000			78,000
Professional fees		5,000			5,000			10,000			17,000
Office and general expenses		-			-			-			280
Depreciation and amortization		-			-			-			263
Bank charges		36			461			75			835


Total Operating Expenses		45,536			56,026			92,075			122,543

Loss from operations		(45,536	)		(38,336	)		(92,075	)		(104,853	)

Other Income (Expense):
Interest expense		(750	)		(750	)		(1,500	)		(1,500	)



Net Loss	$	(46,286	)	$	(39,086	)	$	(93,575	)	$	(106,353	)


Net loss per share:
Basic and diluted	$	0.00		$	0.00		$	0.00		$	(0.01	)

Weighted average shares outstanding
Basic and Diluted		62,433,536			18,477,492			40,576,940			18,477,492

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

SHELRON GROUP, INC.

STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Six Months Ended
	June 30,			June 30,
	2011			2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(93,575	)	$	(106,353	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		-			263
Changes in operating assets and liabilities:
Increase in accounts payable		12,050			27,001
Increase in due to stockholders		81,471			69,966
Net cash used in operating activities		(54	)		(9,123	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Cash received from officer for common stock to be issued		-			9,295
Net cash provided by financing activities		-			9,295

Net (decrease) increase in cash		(54	)		172
Cash at the beginning of the period		54			282

Cash at the end of the period	$	-		$	454


Schedule of Non-Cash Activity:
Payment of Due to Stockholder in the
Form of Shares of Common Stock	$	250,000		$	-
Deposit on Software License	$	900,000		$	-

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

SHELRON GROUP, INC.

NOTES TO UNAUDITED FINANCIAL STATEMENTS

NOTE 1 - THE COMPANY AND ITS OPERATIONS

Shelron Group, Inc. (the "Company") was originally incorporated in the State of Massachusetts in June 1987, under the name "Professional Brushes, Inc." In April 1999, the Company changed its state of incorporation to Delaware by means of a merger with and into a Delaware company and, in connection therewith, changed our name to "PB Acquisition Corp." In May 2000, the Company entered into a share exchange agreement with TTTTickets.com, Inc., a Delaware corporation ("Tickets") incorporated in April 2000 for the purposes of developing and maintaining an internet website for the sale and purchase of event tickets, pursuant to which Tickets became a wholly owned subsidiary of the Company. We also changed our name to "TTTTickets Holding Corp." Thereafter, in November 2001, we entered into a stock purchase and merger agreement with B-Park Communications, Inc., ("B-Park") a Delaware corporation formed in August 2001 for the sole purpose of entering into such agreement. In September 2002, we changed our name to Shelron Group, Inc.

The Company is currently focused on two sectors, internet and mining. The Company has entered into the following agreements related to these areas:

On April 3, 2011, the Company signed a non-binding Memorandum of Understanding to acquire gold mining rights in Ghana. The Company is currently conducting due diligence on these mines and if satisfactory we will move to close the transaction. Until the completion of the due diligence process, the Company will be unable to determine if it will make an offer to acquire these mines and if its offer will be accepted by the sellers.

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As shown in the accompanying financial statements, the Company has incurred continuing losses, has no assets and an accumulated deficit of approximately $6.4 million, all of which raises substantial doubt about the Company's ability to continue as a going concern.

Management believes that the Company will continue to incur losses and negative cash flows from operating activities for the foreseeable future and will need additional equity or debt financing to sustain its operations until it can achieve profitability and positive cash flows, if ever. Management plans to seek additional debt and/or equity financing for the Company, but cannot assure that such financing will be available on acceptable terms. The Company's continuation as a going concern is dependent upon its ability to ultimately attain profitable operations, generate sufficient cash flow to meet its obligations, and obtain additional financing as may be required. The outcome of this uncertainty cannot be assured. The Company is currently dependent on its President to continue to fund the Company. If the Company is unable to acquire or develop an operating business the Company will be unable to fund itself. There is no guarantee that our President will continue to fund the Company.

The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. There can be no assurance that management will be successful in implementing its business plan or that the successful implementation of such business plan will actually improve the Company's operating results.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited interim financial statements reflect all adjustments of a normal recurring nature, which are, in the opinion of management, necessary for a fair statement of the results of operations for the interim periods presented. The financial statements are unaudited and are subject to such year-end adjustments as may be considered appropriate and should be read in conjunction with the historical financial statements of the Company for the years ended December 31, 2010 and 2009 included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2010. The December 31, 2010 balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. Operating results for the six months ended June 30, 2011 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2011.

These interim financial statements have been prepared in accordance with US Generally Accepted Accounting Principles ("US GAAP") and under the same accounting principles as the financial statements included in the Annual Report on Form 10-K. Certain information and footnote disclosures related thereto normally included in the financial statements prepared in accordance with US GAAP have been omitted in accordance with Rule 8.03 of Regulation S-X.

Fair Value of Financial Instruments

The carrying amounts reported in the balance sheet for cash, accounts payable and accrued expenses, due to stockholders and convertible note payable approximate fair value based on the short-term maturity of these instruments.

Loss Per Share

Basic loss per share is computed by dividing net loss by the weighted-average number of shares of Common Stock outstanding during the period. Diluted loss per share give effect to dilutive convertible securities, options, warrants and other potential Common Stock outstanding during the period, only in periods in which such effect is dilutive. The following securities have been excluded from the calculation of net loss per share, as their effect would be antidilutive:

	June 30,		June 30,
	2011		2010
Series A convertible preferred stock		1,000,000		1,000,000
Convertible note payable		2,054,284		1,923,122

Recently Issued Accounting Standards

Management does not believe that any recently issued but not yet effective accounting standard, if currently adopted, would have a material effect on the accompanying financial statements

Subsequent Events

The Company has evaluated subsequent events through the date of the filing.

NOTE 3 - DUE TO STOCKHOLDERS AND RELATED PARTIES

Hull Services, Inc. ("Hull")

The Company is controlled by Hull, a company wholly-owned by Eliron Yaron, the Company's Principal Executive Officer/Principal Financial and Accounting Officer. In March 2005, the Company entered into a consulting agreement with Hull. Pursuant to the terms of the agreement, Hull receives consulting fees totaling $156,000 per annum in installments of $3,000 per week. Due to stockholder represents accrued but unpaid consulting as well as other loans payable made by Hull.

For the six months ended June 30, 2011 and 2010, consulting services totaled $78,000 and $78,000, respectively. For the three months ended June 30, 2011 and 2010, consulting services totaled $39,000 and $39,000, respectively. Such amounts are reflected on the statements of operations as employment compensation. On June 15, 2011, the Company issued 250,000,000 shares to Mr. Yaron as partial payment of the debt it owes to Hull. The Company valued the shares at $250,000 and recorded a reduction in the amount of debt it owes to Hull. At June 30, 2011 and December 31, 2010, the Company owed Hull $272,065 and $440,594, respectively.

Liability for Common Stock to be issued to officer

The Company has received proceeds for shares of Common Stock to be issued to Mr. Yaron, the Company's Principal Executive Officer/Principal Financial and Accounting Officer. As the shares were not issued as of March 31, 2011 and December 31, 2010, the proceeds were not included in stockholders’ deficiency but classified as a liability for common stock to be issued to officer. The liability totaled $205,740 as of June 30, 2011 and December 31, 2010.

NOTE 4 – CONVERTIBLE NOTE PAYABLE

On October 2, 2008, the Company received proceeds of $50,000 for an unsecured convertible note payable issued for working capital purposes. The note bears interest at 6% per annum and matured on April 18, 2009. The note holder has the option to convert the note and related accrued interest into share of the Company’s Common Stock at equal or lower of (a) 20% below the average of the closing price of the Common Stock for the five trading days prior to the date of the agreement and (b) the average closing price of the Common Stock for the five trading days prior to the date of the conversion notice.

As of the maturity date the Company did not make any payments in respect of the amounts due. The non-payment of this amount constituted an Event of Default under the transaction document. On June 20, 2011, the Company and the note holder entered into an agreement whereby the maturity of the note was extended until December 31, 2011. In addition, in consideration for the waiver of the Event of Default, the Company agreed to reduce the price at which the note holder may convert the principal amount of the loan and interest accrued thereon (or any portion hereof) into shares of the Company’s common stock at $0.001 per share. In the beginning of August 2011, the note holder converted $39,000 of the convertible note payable into 39,900,000 shares of the Company’s stock.

NOTE 5 – DEPOSIT ON SOFTWARE LICENSE

On May 25, 2011, the Company entered into an exclusive perpetual worldwide software license. The Company will utilize the software to create an affiliate network for online stores. The software requires further modifications. The Company expects the software to be available for use during the fourth quarter of 2011. The Company agreed to pay $900,000 for such license in cash or in shares of the Company based the average share price on the preceding 30 days before payment. Such payment is scheduled to be made on or about August 12, 2012 and only if the Company achieves $1,250,000 in aggregate revenues from the use of the software prior to the payment date. If the aggregate revenues are below $1,250,000, the Company has a right to terminate the license agreement with no penalty or payment required. .

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

OVERVIEW

Shelron Group, Inc. (the “Company”, “we”, “our”, or “us”) developed e-commerce advertising and comparative shopping software products and services. At the present time, the Company does not intend to actively promote its current ActiveShopper product but will instead explore new opportunities in the mining, media, internet, oil and gas and high-tech fields. We are also considering strategic acquisitions that management believes will enhance our market positioning.

On April 3, 2011, we signed a non-binding Memorandum of Understanding to acquire gold mining rights in Ghana. We are currently conducting due diligence on these mines and if satisfactory we will move to close the transaction. Until we complete our due diligence process, we will be unable to determine if we will make an offer to acquire these mines and if our offer will be accepted by the sellers.

We do not participate in, nor have we created, any off-balance sheet special purpose entities or other off-balance sheet financing.

Critical accounting policies and estimates:

Our financial statements and related public financial information are based on the application of accounting principles generally accepted in the United States (“GAAP”). GAAP requires the use of estimates, assumptions, judgments and subjective interpretations of accounting principles that have an impact on the assets, liabilities, revenue and expense amounts reported. These estimates can also affect supplemental information contained in our external disclosures including information regarding contingencies, risk and financial condition. We believe our use of estimates and underlying accounting assumptions adhere to GAAP and are consistently and conservatively applied. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ materially from these estimates under different assumptions or conditions. We continue to monitor significant estimates made during the preparation of our financial statements.

Our significant accounting policies are summarized in Note 2 of Notes to Financial Statements. While all these significant accounting policies impact its financial condition and results of operations, the Company views certain of these policies as critical. Policies determined to be critical are those policies that have the most significant impact on our consolidated financial statements and require management to use a greater degree of judgment and estimates. Actual results may differ from those estimates. Our management believes that given current facts and circumstances, it is unlikely that applying any other reasonable judgments or estimate methodologies would cause effect on our consolidated results of operations, financial position or liquidity for the presented in this report.

RESULTS OF OPERATIONS

Comparison of the three months ended June 30, 2011 (the "2011 Period") and the three months ended June 30, 2010 (the "2010 Period"):

Revenues

The Company did not have any revenues for the three months ended June 30, 2011 as compared to revenues of $17,690 during the three months ended June 30, 2010. As discussed above, beginning in 2010, we did not actively promote our current ActiveShopper product. Instead, we explored new opportunities in the mining, media, internet, oil and gas and high-tech fields and provided consulting services to some of these industries during the 2010 Period. We also considered strategic acquisitions that management believes will enhance our market positioning.

Operating Expenses

Operating expenses consist of salaries, consulting expenses, professional fees and other expenses associated with the operations of our business. For the 2011 Period, operating expenses were $45,536, a decrease of $10,490 or 18.7%, as compared to $56,026 for the 2010 Period. The decrease is primarily attributable to decreased consulting fees of $10,065 in the 2011 Period as compared to the 2010 Period.

Employment Compensation

Our sole full-time employee is our Chairman of the Board, Eliron Yaron. Employment compensation totaled $39,000 for the 2011 and 2010 Periods.

Consulting Fees

Consulting fees consist primarily of outsourced consulting services. For the 2011 Period, consulting fees were $1,500, a decrease of $10,065 or 87.0% as compared to $11,565 for the 2010 Period. The decrease in consulting fees is primarily due to decreased fees incurred during the 2011 Period as a result of the slowdown in our business activities.

Professional Fees

Professional fees consist primarily of legal, accounting and auditing. Professional fees totaled $5,000 for the 2011 and 2010 Periods.

Comparison of the six months ended June 30, 2011 (the "2011 Period") and the three months ended June 30, 2010 (the "2010 Period"):

Revenues

The Company did not have any revenues for the six months ended June 30, 2011 as compared to revenues of $17,690 during the six months ended June 30, 2010. As discussed above, beginning in 2010, we did not actively promote our current ActiveShopper product. Instead, we explored new opportunities in the mining, media, internet, oil and gas and high-tech fields and provided consulting services to some of these industries during the 2010 Period. We also considered strategic acquisitions that management believes will enhance our market positioning.

Operating Expenses

Operating expenses consist of salaries, consulting expenses, professional fees and other expenses associated with the operations of our business. For the 2011 Period, operating expenses were $92,075, a decrease of $30,468 or 24.9%, as compared to $122,543 for the 2010 Period. The decrease is primarily attributable to decreased consulting fees of $22,165 and professional fees of $7,000 in the 2011 Period as compared to the 2010 Period.

Employment Compensation

Our sole full-time employee is our Chairman of the Board, Eliron Yaron. Employment compensation totaled $78,000 for the 2011 and 2010 Periods.

Consulting Fees

Consulting fees consist primarily of outsourced consulting services. For the 2011 Period, consulting fees were $4,000, a decrease of $22,165 or 84.7% as compared to $26,165 for the 2010 Period. The decrease in consulting fees is primarily due to decreased fees incurred during the 2011 Period as a result of the slowdown in our business activities.

Professional Fees

Professional fees consist primarily of legal, accounting and auditing. For the 2011 Period, professional fees were $10,000, a decrease of $7,000 or 41.2% as compared to $17,000 for the 2010 Period. The decrease in professional fees is primarily due to decreased fees incurred during the 2011 Period as a result of the slowdown in our business activities.

LIQUIDITY AND CAPITAL RESOURCES

To date, we have financed our operations primarily from cash generated through the sale of our Common Stock in private placements as well as from cash earned from our operations.

As of June 30, 2011, we had no cash or assets.

Cash used in operating activities was $54 for the 2011 Period compared to $9,123 for the 2010 Period. The decrease in cash from operating activities for the 2011 Period is primarily attributable to the cash needed to fund the loss for the 2011 Period.

Cash provided by financing activities in the 2011 Period was $0 compared to $9,295 for the 2010 Period which all related to proceeds received from Eliron Yaron, our President, for investments in the Company’s common stock.

The focus of the Company’s efforts is to acquire or develop an operating business. Despite limited active operations at this time, management intends to continue in business and has no intentions to liquidate the Company. The Company has considered various business alternatives including the possible acquisition of an existing business. The Company is currently focused on two sectors, internet and mining.

The Company is currently dependent on its President, Mr. Yaron, to continue to fund the Company. If the Company is unable to grow its affiliate network business or to acquire or develop an operating business the Company will be unable to fund itself. There is no guarantee that Mr. Yaron will continue to fund the Company.

On October 2, 2008, the Company received proceeds of $50,000 for an unsecured convertible note payable issued for working capital purposes. The note bears interest at 6% per annum and matured on April 18, 2009. As of the maturity date the Company did not make any payments in respect of the amounts due. The non-payment of this amount constituted an Event of Default under the transaction document. On June 20, 2011, the Company and the note holder entered into an agreement whereby the maturity of the note was extended until December 31, 2011. In addition, in consideration for the waiver of the Event of Default, the Company agreed to reduce the price at which the note holder may convert the principal amount of the loan and interest accrued thereon (or any portion hereof) into shares of the Company’s common stock at $0.001 per share. In the beginning of August 2011, the note holder converted $39,000 of the convertible note payable into 39,900,000 shares of the Company’s stock.

Management believes the Company will continue to incur losses and negative cash flows from operating activities for the foreseeable future and will need additional equity or debt financing to sustain its operations until it can achieve profitability and positive cash flows, if ever. The Company’s continuation as a going concern is dependent upon its ability to ultimately attain profitable operations, generate sufficient cash flow to meet its obligations, and obtain additional financing as may be required. The outcome of this uncertainty cannot be assured. Our independent registered public accounting firm, in their reports on our financial statements for the year ended December 31, 2010, expressed substantial doubt about our ability to continue as a going concern. These circumstances could complicate our ability to raise additional capital. Our financial statements do not include any adjustments to the carrying amounts of our assets and liabilities that might result from the outcome of this uncertainty.

The accompanying consolidating financial statements do not include any adjustments that might result from the outcome of this uncertainty. There can be no assurance that management will be successful in implementing its business plan or that the successful implementation of such business plan will actually improve the Company's operating results.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not required for Smaller Reporting Companies.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Effectiveness of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our Chief Executive Officer, who also acts as our Chief Financial Officer, the Company evaluated the effectiveness of its disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The evaluation considered the procedures designed to provide assurance to ensure that information required to be disclosed by us in the reports filed or submitted by the Company under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and communicated to our management as appropriate to allow timely decisions regarding required disclosure. Our disclosure controls and procedures have been designed to provide reasonable assurance of achieving their objectives. Based on that evaluation, our Chief Executive Officer concluded that our disclosure controls and procedures were effective at that reasonable assurance level, as of June 30, 2011.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f)) during the six months ended June 30, 2011 that have materially affected, or are reasonably likely to materially affect our internal control over financial reporting.

LIMITATIONS OF EFFECTIVENESS OF INTERNAL CONTROLS

Management does not expect that our disclosure controls and procedures or our internal control over financial reporting will necessarily prevent all fraud and material errors. An internal control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations on all internal control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. The design of any system of internal control is also based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in circumstances, and/or the degree of compliance with the policies and procedures may deteriorate. Because of the inherent limitations in a cost effective internal control system, financial reporting misstatements due to error or fraud may occur and not be detected on a timely basis.

Part II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDING

We are not a party to any material legal proceeding.

ITEM 1A. RISK FACTORS

Not applicable.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Not applicable.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not Applicable.

ITEM 4. REMOVED AND RESERVED

ITEM 5. OTHER INFORMATION

Not Applicable.

ITEM 6. EXHIBITS

Exhibit Number		Description
31.1		PEO and PFO certifications required under Section 302 of the Sarbanes-Oxley Act of 2002
32.1		PEO and PFO certifications required under Section 906 of the Sarbanes-Oxley Act of 2002

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.

Signature	Capacity	Date

/s/ Eliron Yaron	Chief Executive Officer, President and Principal Financial Accounting Officer	August 22, 2011
Eliron Yaron

SHELRON GROUP INC 10-Q