Income Taxes

12 Months Ended

Mar. 31, 2013

Income Taxes

5.  INCOME TAXES

Components of tax expense (benefit) are as follows:

	Year Ended March 31
	2013			2012
Federal
Current	$	2,840,388		$	3,752,504
Deferred		(83,720	)		(90,700	)
		2,756,668			3,661,804
State
Current		252,797			394,292
		252,797			394,292
Total	$	3,009,465		$	4,056,096

The U.S. federal statutory income tax rate is reconciled to the effective rate as follows:

	Year Ended March 31
	2013			2012
Income Tax Expense at U.S. federal statutory rate		34.0	%		34.0	%
Benefit of tax deduction allowed to manufacturing companies		(3.0	)		(3.0	)
State and local income tax rates net of federal income tax benefit		1.9			2.2
Provision for income taxes		32.9	%		33.2	%

The Company’s tax returns may be subject to examination by the Internal Revenue Service for the fiscal years ending March 31, 2010 through March 31, 2012. State and local returns may be subject to examination for fiscal years ended March 31, 2010 through March 31, 2012.

Deferred income taxes are provided for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s consolidated deferred tax assets (liabilities) are as follows:

	March 31
	2013			2012
Deferred tax liabilities:
Depreciation	$	(1,700,000	)	$	(1,756,129	)
Total deferred tax liabilities		(1,700,000	)		(1,756,129	)
Deferred tax assets:
Inventory capitalization		170,000			173,990
LIFO Inventory		785,000			788,145
Postretirement benefits other than pensions		316,000			290,271
Other		66,721			57,724
Total deferred tax assets		1,337,721			1,310,130
Net deferred tax liability	$	(362,279	)	$	(445,999	)