U.S. SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 
 FORM 10-QSB
 
 [x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 For the quarterly period ended: September 30, 2010
 
 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from ________ to _________
 
 Commission file number 000-53098
 
 SHATRUSEN, INC.
 (Exact name of registrant as specified in its charter)
  Nevada
26-1540683(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
 
 8456 SW 109thLane Road, Ocala FL34481
 (Address of principal executive offices)
 
 928-713-2386
 Issuer’s telephone number
  (Former name, former address and former
 fiscal year, if changed since last report)
 
 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. ý  Yes     No
 
 Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every
 Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
  Yes  ý 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. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
 
 Large accelerated filer   □
Accelerated filer     □Non-accelerated filer     □  (Do not check if a smaller reporting company)
Smaller reporting company     ý
 
 Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).  ý  Yes     No
 
 APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
 PROCEEDINGS DURING THE PRECEDING FIVE YEARS
 
 Check whether the registrant filed all documents and reports required to be filed by Section l2, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court. Yes [ ] No [ ]
  APPLICABLE ONLY TO CORPORATE ISSUERS
 
 State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date:  At November 18, 2010 there were 1,000,000 shares of common stock outstanding.
 Item 1. Financial Statements
  PageBalance Sheets as of September 30, 2010 (unaudited) and December 31, 2009 (audited)
F-1Statements of Operations for the three months ended September 30, 2010 and 2009 (unaudited) for the period from inception (December 4, 2007) through September 30, 2010
F-2Statements of Operations for the nine months ended September 30, 2010 and 2009 (unaudited) for the period from inception (December 4, 2007) through September 30, 2010
F-3Statements of Stockholders’ Deficit at September 30, 2010
F-4Statements of Cash Flows for the nine months ended September 30, 2010 and 2009 (unaudited) and for the period from inception (December 4, 2007) through September 30, 2010
F-5Notes to Financial Statements.
F-6
 
 
 
 Shatrusen, Inc.(A Development Stage Company)Balance SheetsAs ofSeptember 30, 2010


December 31, 2009(Unaudited)


(Audited)ASSETSCURRENT ASSETS:Cash

$
100


$
100TOTAL CURRENT ASSETS


100



100TOTAL ASSETS

$
100


$
100LIABILITIES AND STOCKHOLDERS' DEFICITCURRENT LIABILITIES:Note Payable to a Related Party


14,181



14,181Accrued Interest Expense


9,791



5,940TOTAL CURRENT LIABILITIES


23,972



20,121TOTAL LIABILITIES


23,972



20,121STOCKHOLDERS' DEFICITPreferred stock ($0.0001 par value; 10,000,000 shares authorized; no sharesissued and outstanding at September 30, 2010 and December 31, 2009)


-



-Common stock ($0.0001 par value; 100,000,000 shares authorized:1,000,000 issued and outstanding at September 30, 2010 and December 31, 2009)


100



100Additional Paid in Capital


-



-Deficit Accumulated During the Development Stage


(23,972
)


(20,121
)TOTAL STOCKHOLDERS' DEFICIT


(23,872
)


(20,021
)TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT

$
100


$
100
 
 The accompanying notes are an integral part of these financial statements.
 
 F-1
 
 Shatrusen, Inc.(A Development Stage Company)Statements of Operations (Unaudited)CumulativeFor the three months ended


TotalsSeptember 30,


Since Inception2010


2009


December 4, 2007REVENUESIncome

$
-


$
-


$
-Total Revenues


-



-



-EXPENSESSelling, general and administrative


-



-



681Professional Fees


1,500



500



21,000TOTAL EXPENSES


1,500



500



21,681Net Income/(Loss) from Operations


(1,500
)


(500
)


(21,681
)OTHER (EXPENSE)/INCOMEInterest Expense


(284
)


(180
)


(2,291
)Net Income/(Loss)

$
(1,784
)

$
(680
)

$
(23,972
)Net income/(loss) per share--basic and fully dilutedNet income/(loss) per share

$
*


$
*


$
(0.02
)Weighted average shares outstanding--basic and fully diluted


1,000,000



1,000,000



1,000,000
 
 * = less than $.01.
 
 The accompanying notes are an integral part of these financial statements.
 
 F-2
 
 Shatrusen, Inc.(A Development Stage Company)Statements of Operations (Unaudited)CumulativeFor the nine months ended


TotalsSeptember 30,


Since Inception2010


2009


December 4, 2007REVENUESIncome

$
-


$
-


$
-Total Revenues


-



-



-EXPENSESSelling, general and administrative


-



-



681Professional Fees


3,000



1,000



21,000TOTAL EXPENSES


3,000



1,000



21,681Net Income/(Loss) from Operations


(3,000
)


(1,000
)


(21,681
)OTHER (EXPENSE)/INCOMEInterest Expense


(851
)


(540
)


(2,291
)Net Income/(Loss)

$
(3,851
)

$
(1,540
)

$
(23,972
)Net income/(loss) per share--basic and fully dilutedNet income/(loss) per share

$
*


$
*


$
(0.02
)Weighted average shares outstanding--basic and fully diluted


1,000,000



1,000,000



1,000,000
 
 * = less than $.01.
 
 The accompanying notes are an integral part of these financial statements.
 
 F-3
 
 Shatrusen, Inc.(A Development Stage Company)Statement of Stockholders' Deficit (Unaudited)DeficitAdditional


AccumulatedCommon Stock


Preferred stock


Paid-in


Since InceptionShares


Amount


Shares


Amount


Capital


December 4, 2007Balances, December 31, 2007


1,000,000.00


$
100



-


$
-


$
-


$
(2,500
)Net loss for the year


-



-



-



-



-



(10,220
)Balances, December 31, 2008


1,000,000


$
100



-


$
-


$
-


$
(12,720
)Net loss for the year


-



-



-



-



-



(7,401
)Balances, December 31, 2009


1,000,000


$
100



-


$
-


$
-


$
(20,121
)Net loss


-



-



-



-



-



(3,851
)Balances, September 30, 2010


1,000,000


$
100



-


$
-


$
-


$
(23,972
)
 
 The accompanying notes are an integral part of these financial statements.
 
 F-4
 
 Shatrusen, Inc.(A Development Stage Company)Statements of Cash Flows (Unaudited)CumulativeTotalsFor the nine months ended


Since InceptionSeptember 30, 2010


September 30, 2009


December 4, 2007CASH FLOWS FROM OPERATING ACTIVITIES:Net loss

$
(3,851
)

$
(1,540
)

$
(23,972
)Adjustments to reconcile net (loss) to net cash used in operations:Increase /(decrease) in Accrued Expenses


3,851



1,540



9,791NET CASH PROVIDED BY (USED IN) OPERATINGACTIVITIES


-



-



(14,181
)CASH FLOWS FROM FINANCING ACTIVITIES:Proceeds from Note Payable to a Related Party


-



-



14,181Capital Stock purchase


-



-



100NET CASH PROVIDED BY (USED IN) INVESTINGACTIVITIES


-



-



14,281NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS


-



-



100CASH AND CASH EQUIVALENTS,BEGINNING OF THE PERIOD


100



100



-END OF THE PERIOD

$
100


$
100


$
100SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:CASH PAID DURING THE PERIOD FOR:Interest

$
-


$
-


$
-Taxes

$
-


$
-


$
-
 The accompanying notes are an integral part of these financial statements.
  F-5
 SHATRUSEN, INC.
 (A development stage company)
 NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
 AS OF SEPTEMBER 30, 2010
 
 NOTE A—BUSINESS ACTIVITY
 
 Shatrusen, Inc. (“The Company”) was organized under the laws of the State of Nevada on December 4, 2007 as a corporation.  The Company’s objective is to acquire or merge with a target business or company in a business combination.
 
 NOTE B—GOING CONCERN
 
 The accompanying financial statements have been prepared on a going concern basis, which assumes the Company will realize its assets and discharge its liabilities in the normal course of business.  As reflected in the accompanying financial statements, the Company has a deficit accumulated during the development stage of $23,972 used cash from operations of $14,181 since its inception, and has a negative working capital of $23,872 at September 30, 2010.
 
 The Company’s ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due.  The Company’s ability to continue as a going concern is also dependent on its ability to find a suitable target company and enter into a possible reverse merger with such company.  Management’s plan includes obtaining additional funds by equity financing through a reverse merger transaction and/or related party advances; however there is no assurance of additional funding being available.  These circumstances raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might arise as a result of this uncertainty.
 
 NOTE C—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
 Basis of Presentation-
 
 The financial statements included herein were prepared under the accrual basis of accounting.
 
 Cash and Cash Equivalents- For purposes of the Statement of Cash Flows, the Company considers liquid investments with an original maturity of three months or less to be cash equivalents.
 
 Management’s Use of Estimates- The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The financial statements above reflect all of the costs of doing business.
 
 Revenue Recognition- The Company applies paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition.  The Company recognizes revenue when it is realized or realizable and earned less estimated future doubtful accounts.  The Company considers revenue realized or realizable and earned when all of the following criteria are met:
  (i)
persuasive evidence of an arrangement exists,
 
 (ii)
the services have been rendered and all required milestones achieved,
 
 (iii)
the sales price is fixed or determinable, and
 
 (iv)
collectability is reasonably assured.
 
 Comprehensive Income (Loss) - The Company reports Comprehensive income and its components following guidance set forth by section 220-10 of the FASB Accounting Standards Codification which establishes standards for the reporting and display of comprehensive income and its components in the financial statements. There were no items of comprehensive income (loss) applicable to the Company during the period covered in the financial statements.
 
 Net Income per Common Share- Net loss per common share is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification.  Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period.  Diluted net loss per share is computed by dividing net loss by the weighted average number of shares of common stock and potentially outstanding shares of common stock during each period.  There were no potentially dilutive shares outstanding as of September 30, 2010.
 
 Deferred Taxes- The Company accounts for income taxes under Section 740-10-30 of the FASB Accounting Standards Codification.  Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse.  Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statements of operations in the period that includes the enactment date.
 
 Fair Value of Financial Instruments- The carrying amounts reported in the balance sheet for cash, accounts receivable and payable approximate fair value based on the short-term maturity of these instruments.
 
 Accounts Receivable- Accounts deemed uncollectible are written off in the year they become uncollectible. As of September 30, 2010, the balance in Accounts Receivable was $0.
 
 Impairment of Long-Lived Assets- The Company evaluates the recoverability of its fixed assets and other assets in accordance with section 360-10-15 of the FASB Accounting Standards Codification for disclosures about Impairment or Disposal of Long-Lived Assets.  Disclosure requires recognition of impairment of long-lived assets in the event the net book value of such assets exceeds its expected cash flows. If so, it is considered to be impaired and is written down to fair value, which is determined based on either discounted future cash flows or appraised values. The Company adopted the statement on inception. No impairments of these types of assets were recognized during the period ended September 30, 2010.
 F-6
 
 SHATRUSEN, INC.
 (A development stage company)
 NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
 AS OF SEPTEMBER 30, 2010
 
 NOTE C—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—CONT’D
 
 Stock-Based Compensation- The Company accounts for stock-based compensation using the fair value method following the guidance set forth in section 718-10 of the FASB Accounting Standards Codification for disclosure about Stock-Based Compensation. This section requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award- the requisite service period (usually the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the requisite service.
 
 Fair Value for Financial Assets and Financial Liabilities- The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments.  Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels.  The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs.  The three levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below:
  Level 1
Quoted market prices available in active markets for identical assets or liabilities as of the reporting date.Level 2
Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date.Level 3
Pricing inputs that are generally observable inputs and not corroborated by market data.
 
 The carrying amounts of the Company’s financial assets and liabilities, such as cash and accrued expenses, approximate their fair values because of the short maturity of these instruments. The Company’s note payable approximates the fair value of such instrument based upon management’s best estimate of interest rates that would be available to the Company for similar financial arrangement at September 30, 2010.The Company does not have any assets or liabilities measured at fair value on a recurring or a non-recurring basis, consequently, the Company did not have any fair value adjustments for assets and liabilities measured at fair value at September 30, 2010, nor gains or losses are reported in the statement of operations that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date for the interim period ended September 30, 2010.
 
 Recent Accounting Pronouncements
 
 In March 2010, the FASB issued Accounting Standard Update No. 2010-11 “Derivatives and Hedging” (Topic 815). ASU No. 2010-11 update provides amendments to subtopic 815-15, Derivatives and hedging. The amendments clarify about the scope exception in paragraph 815-10-15-11 and section 815-15-25 as applicable to the embedded credit derivatives. The ASU is effective on the first day of the first fiscal quarter beginning after June 15, 2010. Therefore, for a calendar-year-end entity, the ASU becomes effective on July 1, 2010. Early application is permitted at the beginning of the first fiscal quarter beginning after March 5, 2010In April 2010, the FASB issued Accounting Standard Update No. 2010-12. “Income Taxes” (Topic 740). ASU No.2010-12 amends FASB Accounting Standard Codification subtopic 740-10 Income Taxes to include paragraph 740-10-S99-4. On March 30, 2010 The President signed the Health Care & Education Affordable Care Act reconciliation bill that amends its previous Act signed on March 23, 2010. FASB Codification topic 740, Income Taxes, requires the measurement of current and deferred tax liabilities and assets to be based on provisions of enacted tax law. The effects of future changes in tax laws are not anticipated.” Therefore, the different enactment dates of the Act and reconciliation measure may affect registrants with a period-end that falls between March 23, 2010 (enactment date of the Act), and March 30, 2010 (enactment date of the reconciliation measure). However, the announcement states that the SEC would not object if such registrants were to account for the enactment of both the Act and the reconciliation measure in a period ending on or after March 23, 2010, but notes that the SEC staff “does not believe that it would be appropriate for registrants to analogize to this view in any other fact patterns.”
 
 In April 2010, the FASB issued Accounting Standard Update No. 2010-13 “Stock Compensation” (Topic 718). ASU No.2010-13 provides amendments to Topic 718 to clarify that an employee share-based payment award with an exercise price denominated in the currency of a market in which a substantial portion of the entity's equity securities trades should not be considered to contain a condition that is not a market, performance, or service condition. Therefore, an entity would not classify such an award as a liability if it otherwise qualifies as equity. The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2010. The amendments in this Update should be applied by recording a cumulative-effect adjustment to the opening balance of retained earnings. The cumulative-effect adjustment should be calculated for all awards outstanding as of the beginning of the fiscal year in which the amendments are initially applied, as if the amendments had been applied consistently since the inception of the award. The cumulative-effect adjustment should be presented separately. Earlier application is permitted.
 
 In April 2010, the FASB issued Accounting Standards Update No.2010-14, “Accounting for Extractive Activities – Oil & Gas” (Topic 932). ASU No. 2010-14 amends FASB accounting Standard paragraph 932-10-S99-1 due to SEC release no. 33-8995 [FR 78], Modernization of Oil and Gas Reporting and provides update as to amendments to SEC Regulation S-X, Rule 4-10.
 
 In April 2010, the FASB issued Accounting Standard Update No. 2010-15. “Financial Services-Insurance” (Topic 944) ASU No.2010-15 gives direction on how investments through separate accounts affect an insurer’s consolidation analysis of those investments. Under the ASU: an insurance entity should not consider any separate account interests held for the benefit of policy holders in an investment to be the insurer's interests and should not combine those interests with its general account interest in the same investment when assessing the investment for consolidation, unless the separate account interests are held for the benefit of a related party policy holder as defined in the Variable Interest Entities Subsections of Subtopic 810-10 and those Subsections require the consideration of related parties. The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after
 
 December 15, 2010. Early adoption is permitted. The amendments in this Update should be applied retrospectively to all prior periods upon the date of adoption.
 F-7
 
 SHATRUSEN, INC.
 (A development stage company)
 NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
 AS OF SEPTEMBER 30, 2010
  NOTE C—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—CONT’D
 
 Recent Accounting Pronouncements (cont’d)
 
 In April 2010, the FASB issued Accounting Standard Update No. 2010-16. “Entertainment-Casinos” (Topic 924). ASU No.2010-16 addresses diversity in practice regarding whether an entity accrues liabilities for a base jackpot before it is won because they could avoid the payment. The amendments in this update clarify that an entity should not accrue jackpot liabilities (or portions thereof) before a jackpot is won if the entity can avoid paying that jackpot. Jackpots should be accrued and charged to revenue when an entity has the obligation to pay the jackpot. This guidance applies to both base and progressive jackpots. The ASU amendments are effective for fiscal years, and the interim periods within those fiscal years, beginning on or after December 15, 2010.
 
 In April 2010, the FASB issued Accounting Standard Update No. 2010-17. “Revenue Recognition-Milestone Method” (Topic 605) ASU No.2010-17 provides guidance on defining a milestone and determining when it may be appropriate to apply the milestone method of revenue recognition for research or development transactions. An entity often recognizes these milestone payments as revenue in their entirety upon achieving a specific result from the research or development efforts. A vendor can recognize consideration that is contingent upon achievement of a milestone in its entirety as revenue in the period in which the milestone is achieved only if the milestone meets all criteria to be considered substantive. Determining whether a milestone is substantive is a matter of judgment made at the inception of the arrangement. The ASU is effective for fiscal years and interim periods within those fiscal years beginning on or after June 15, 2010. Early application is permitted. Entities can apply this guidance prospectively to milestones achieved after adoption. However, retrospective application to all prior periods is also permitted.
 
 In April 2010, the FASB issued Accounting Standard Update No. 2010-18. “Receivables” (Topic 310). ASU No.2010-18 provides guidance on accounting for acquired loans that have evidence of credit deterioration upon acquisition. Paragraph 310-30-15-6 allows acquired assets with common risk characteristics to be accounted for in the aggregated as a pool. Upon establishment of the pool, the pool becomes the unit of accounting. When loans are accounted for as a pool, the purchase discount is not allocated to individual loans; thus all of the loans in the pool accrete at a single pool rate (based on cash flow projections for the pool). Under subtopic 310-30, the impairment analysis also is performed on the pool as a whole as opposed to each individual loan. Paragraphs 310-40-15-4 through 15-12 establish the criteria for evaluating whether a loan modification should be classified as a troubled debt restructuring. Specifically paragraph 310-40-15-5 states that “a restructuring of a debt constitutes a troubled debt restructuring for purposes of this subtopic if the creditor for economic or legal reasons related to the debtor’s financial difficulties grants a concession to the debtor that it would not otherwise consider.” The ASU is effective for modification of loans accounted for within pools under subtopic 310-30 occurring in the first interim or annual period ending on or after July 15, 2010. The amendments are to be applied prospectively. Early application is permitted.
 
 In May 2010, the FASB issued Accounting Standard Update No. 2010-19 “Foreign Currency”. (“ASU No. 2010-19”). ASU 2010-19, codifies the SEC staff announcement made at the March 18, 2010, EITF meeting. The ASU “provides the SEC staff’s views on certain foreign currency issues related to investments in Venezuela.” These issues relate to Venezuela’s highly inflationary status. The ASU became effective on March 18, 2010.
  Other ASUs not effective until after September 30, 2010, are not expected to have a significant effect on the Company’s consolidated financial position or results of operations.
 
 NOTE D-SUPPLEMENTAL CASH FLOW INFORMATION
 
 Supplemental disclosures of cash flow information for the nine months ended September 30, 2010 and 2009 is summarized as follows: Cash paid during the nine month period ended September 30, 2010 and 2009 for interest and income taxes:
 
 2010


2009Interest

$
-


$
-Taxes

$
-


$
- 
 F-8
 
 SHATRUSEN, INC.
 (A development stage company)
 NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
 AS OF SEPTEMBER 30, 2010
 
 NOTE E-SEGMENT REPORTING
 
 The Company follows the guidance set forth by section 280-10 of the FASB Accounting Standards Codification for reporting and disclosure on operating segments of the Company. It also requires segment disclosures about products and services, geographic areas, and major customers. The Company determined that it did not have any separately reportable operating segments as of September 30, 2010.
  NOTE F-INCOME TAXES
  Due to the operating loss and the inability to recognize an income tax benefit there is no provision for current or deferred federal or state income taxes for nine months ended September 30, 2010.
 
 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount used for federal and state income tax purposes.
 
 The Company’s total deferred tax asset, calculated using federal and state effective tax rates, as of September 30, 2010 is as follows:
  Total Deferred Tax Asset

$
6,800Valuation Allowance


(6,800
)Net Deferred Tax Asset


-
 
 The reconciliation of income taxes computed at the federal statutory income tax rate to total income taxes for the nine months ended September 30, 2010 and 2009 is as follows:
  2010


2009Income tax computed at the federal statutory rate


34
%


34
%State income tax, net of federal tax benefit


0
%


0
%Total


34
%


34
%Valuation allowance


-34
%


-34
%Total deferred tax asset


0
%


0
%
  Because of the Company’s lack of earnings history, the deferred tax asset has been fully offset by a valuation allowance. The valuation allowance increased by approximately $2,500 for the nine months ending September 30, 2010.
 
 As of September 30, 2010, the Company had a federal and state net operating loss carry forward in the amount of approximately $20,021 which expires in the year ending 2029.
 
 NOTE G-CAPITAL STOCK
 
 The Company is authorized to issue 100,000,000 common shares at $0.0001 par value per share.During the three and nine months ended September 30, 2010, the company issued no stock.As of September 30, 2010, the company had the following common shares outstanding:
 Critz Family, LLC


600,000Garvin Strategic Capital, LLC


250,000Enverdia, LLC


150,0001,000,000
 The Company is authorized to issue 10,000,000 preferred shares at $0.0001 per share.
 
 During the quarter ended September 30, 2010, the company issued no preferred stock.  As of September 30, 2010, the company had no preferred shares outstanding.
 
 NOTE H-DEVELOPMENT STAGE COMPANY
 
 The Company is in the development stage as of September 30, 2010 and to date has had no significant operations. Recovery of the Company assets is dependent on future events, the outcome of which is indeterminable. In addition, successful completion of the Company’s development program and its transition, ultimately, to attaining profitable operations is dependent upon obtaining adequate financing to fulfill its development activities and achieving a level of sales adequate to support the Company’s cost structure.
 
 NOTE I—SHAREHOLDER LOAN/RELATED PARTY
 
 The Company has outstanding promissory notes with a related party. The total amount of loan outstanding is $14,181 and it is payable upon demand, the annual interest rate on this note is 8%.  Accrued interest, but not paid as of September 30, 2010 is $2,291.
 
 F-9
  Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
  Overview
  Shatrusen, Inc. (“we”, “us”, the “Company” or like terms) was incorporated in the State of Nevada on December 4, 2007.  We are a developmental stage company and have not generated any revenues to date.  We were organized to serve as a vehicle for a business combination through a capital stock exchange, merger, reverse acquisition, asset acquisition or other similar business combination (a “Business Combination”) with an operating or development stage business (the “Target Business”) which desires to utilize our status as a reporting company under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).  We are currently in the process of identifying and evaluating Target Businesses.  We are not presently engaged in, and will not engage in, any substantive commercial business operations unless and until we consummate a Business Combination.
  Our management has broad discretion with respect to identifying and selecting a prospective Target Business.  We have not established any specific attributes or criteria (financial or otherwise) for prospective Target Businesses.  Neither of our officers and directors has ever served as an officer or director of a development stage public company with the business purpose of acquiring a Target Business.  Accordingly, they may not successfully identify a Target Business or conclude a Business Combination. Our secretary, who also is a director of our Company, currently serves as an officer and director and is a principal stockholder of another shell company that has a class of stock registered under the Exchange Act which has the same business purpose as us.  Our officer's/director's affiliation with two shell companies raises the possibility of conflicts of interest, in that both companies may have a right to take advantage of the same business opportunity.  Neither our Company nor the other shell company with which our management is affiliated has adopted any policy with respect to resolving any potential conflict of interest and it is possible that any conflict or interest that arises between the two companies may not be decided in our favor.
  Any entity with which we consummate a Business Combination will be subject to numerous risks attendant to its operations.  To the extent we affect a Business Combination with a financially unstable company or an entity in its early stage of development or growth, including entities without established records of sales or earnings, we may be affected by numerous risks inherent in the business and operations of financially unstable and early stage or potential emerging growth companies.  If we consummate a Business Combination with a foreign entity, we will be subject to all of the risks attendant to foreign operations.  Although our management will endeavor to evaluate the risks inherent in a particular Target Business, we cannot assure you that we will properly ascertain or assess all significant risk factors.
  We expect that in connection with any Business Combination, we will issue a significant number of shares of our common stock (equal to at least 80% of the total number of shares outstanding after giving effect to the transaction and likely a significantly higher percentage) in order to ensure that the Business Combination qualifies as a tax-free transaction under federal tax laws.  The issuance of additional shares of our capital stock will:
  ·
significantly reduce the equity interest of our stockholders prior to the transaction; and
 
 ·
cause a change in control in our Company and likely result in the resignation or removal of one or more of our present officers and directors.
  Our management anticipates that the Company likely will affect only one Business Combination, due primarily to our financial resources and the dilution of interest for present and prospective stockholders, which is likely to occur as a result of our management's plan to offer a controlling interest to a Target Business in order to achieve a tax-free reorganization.  This lack of diversification should be considered a substantial risk in investing in us because it will not permit us to offset potential losses from one venture against potential gains from another.
  Liquidity and Capital Resources.
  At September 30, 2010, we had $100 of cash on hand.  Our cash reserves will not be sufficient to cover our ongoing operating costs and expenses over the next twelve months which we expect will comprise costs and expenses in connection with the preparation and filing of reports under the Exchange Act, the identification and evaluation of targets for a Business Combination and, possibly, in connection with a Business Combination.
  To date, we have funded our operations through loans from our stockholders and, as of September 30, 2010, we had borrowed an aggregate of $14,181 from them.  Our stockholders have advised us that they expect to fund additional costs and expenses through loans or further investment in the Company, as and when necessary.
  We cannot provide investors with any assurance that we will have sufficient capital resources to identify a suitable Target Business, to conduct effective due diligence as to any Target Business or to consummate a Business Combination.  As a result of our negative working capital, our losses since inception and our failure to generate revenues from operations, our financial statements include a note in which our auditor has expressed doubt about our ability to continue as a "going concern".
 
 Results of Operations.
  Since our inception, we have not engaged in any material business operations nor generated any revenue.  We reported a net loss of $1,500 and $3,000 for the three and nine month periods, respectively, ended September 30, 2010 and a net loss since inception of $21,681.  The Company has a deficit accumulated during the development stage of $23,972 used cash from operations of $14,181since its inception, and has a negative working capital of $23,872 at September 30, 2010.
  We do not expect to engage in any activities, other than seeking to identify a Target Business, unless and until such time as we enter into a Business Combination, if ever.  We cannot provide investors with any assessment as to the nature of a Target Business’s operations or speculate as to the status of its products or operations, whether at the time of the Business Combination it will be generating revenues or its future prospects.  As a result of our negative working capital, our losses since inception and failure to generate revenues from operations, our financial statements include a note in which our auditor has expressed doubt about our ability to continue as a going concern.
  Item 3. Quantitative and Qualitative Disclosures About Market Risk.
  Not applicable.
  Item 4(T). Controls and Procedures.
  Evaluation of Disclosure Controls and Procedures
  As of September 30, 2010, the Company’s management carried out an evaluation, under the supervision and with the participation of the Company’s Chief Executive Officer, who is the Company’s principal executive officer and principal financial officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rules 13a-15 and 15d-15 under the Exchange Act), pursuant to Exchange Act Rule 13a-15. Based on such evaluation, the Company’s Chief Executive Officer has concluded that the Company's disclosure controls and procedures were effective.
  Changes in Internal Controls
  There have been no changes in the Company’s internal control over financial reporting (as defined in Rules 13a-15 and 15d-15 under the Exchange Act) during the three months ended September 30, 2010 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
  1
 
 PART II — OTHER INFORMATION
  Item 1. Legal Proceedings.
  The Company is not a party to any legal proceeding or litigation.
  Item 1A. Risk Factors.
  Smaller reporting companies are not required to provide the information required by this item.
  Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
  (a) During the three months ended September 30, 2010, the Company did not issue any securities.
  (b) Not applicable.
  (c) During the three months ended September 30, 2010, neither the issuer nor any "affiliated purchaser," as defined in Rule 10b-18(a)(13), purchased any shares or other units of any class of the issuer's equity securities.
  Item 3. Defaults Upon Senior Securities.
  None.
  Item 4. (Removed and Reserved)
  Item 5. Other Information.
  (a) None.
  (b) The Company has not adopted any procedures by which security holders may recommend nominees to the registrant's board of directors.
  Item 6. Exhibits.
  Index to Exhibits
  Exhibit
Description31.1
Certification of the Company’s Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, with respect to the registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2010.32.1*
Certification of the Company’s Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002.
  * Pursuant to Commission Release No. 33-8238, this certification will be treated as “accompanying” this Quarterly Report on Form 10-Q and not “filed” as part of such report for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of Section 18 of the Securities Exchange Act of 1934, as amended, and this certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except to the extent that the registrant specifically incorporates it by reference.
  2
 
 SIGNATURES
  Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused the Report to be signed on its behalf by the undersigned thereunto duly authorized.
 SHATRUSEN, INC.November 19, 2010
By:
/s/George C. Critz, Jr.Name:
George C. Critz, Jr.Title:
President, Principal Executive Officerand Principal Financial Officer