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They applied for extensions from within Canada, during spring last year. Then later (perhaps December) applied for the sponsorship. Not sure what OWP is.

Inland or outland?

OWP = open work permit.
 
Inland. No OWP I think.

From what you said, she has not applied to extend her stay beyond March 1st and did not apply for an OWP. She is now in Canada illegally.

Too bad you didn't respond before today, as I would have advised she immediately apply for a visitor extension before midnight of the 1st.

She should apply for Restoration of status ASAP.