TO THE MEMBERS COSMO FERRITES LTD.
 
 The Directors have pleasure in presenting the Annual Report on the
 business and operations of the company along with
 
 Audited Balance Sheet and Profit & Loss A/c for the year ended 3 Is1
 March 2012.
 
                                                       [Rs. in Lacs)
 
 FINANCIAL RESULT                                 2011-12    2010-11
 
 Sales                                               4497       5127 
 Profit /(Loss)before depreciation
 
 & tax                                                378        816
 
 Depreciation                                         338        292
 
 Pro fit/( Loss) before Tax                            40        524
 
 Provision for current Tax                              4        144
 
 Provision for earlier Year                             -          -
 
 Profit/(Loss) after current Tax                       36        379
 
 Provision for deferred tax                             -        (39)
 
 Profit/(Loss) after deferred lax                      35        418
 
 Add:-Mat Credit Entitlement                            -         -
 
                                                       39        418
 
 Add :Balance brought forward                         585        182 
 Less:- Transfer to Preference
 Share Capital Redemption Reserve
 
 Add:- Transfer from General Reserve                   -          -
 
 Profit/(Loss) available for appropriation            624        600
 
 Provision for arrears off Dividend on
 
 Cumulative Redeemable Preference
 
 Shares                                               136         13
 
 Proposed Dividend on cumulative
 
 redeemable Preference Shares
 
 Corporate Tax on Dividend                              -          2
 
 Balance Carried To Balance Sheet                     488        585
 
                                                      488        585
 
 DIVIDEND
 
 In view of the profit after appropriation being low during this year,
 the Directors are unable to recommend any dividend on the equity shares
 for the year ended March 31, 2012.
 
 DEPOSITORY SYSTEM
 
 Your company shares have been notified for compulsory trading in demat
 form by SEBI w.e.f. September 25, 2000.  Members have the option of
 holding their shares in demat form through any of the depositories by
 opening account with the authorized depository participants.
 
 DEPOSITS
 
 Your Company has not accepted any deposits within the meaning of
 Section 58 A of Companies Act, 1956.
 
 REVIEW OF OPERATIONS
 
 - Sales Revenue Rs 4497 lacs for the year ending 31s1 March 2012 as
 compared to Rs. 5127 Lacs previous year.
 
 - Net Profit after lax for the year is Rs. 39 Lacs as compared to
 Rs.4 18 lacs in the previous year.
 
 - This year was challenging on various fronts, viz upward pressure on
 key raw materials prices along with increased competition in global
 ferrites market, down fall in international market.
 
 FUTURE OUTLOOKS EXPANSION
 
 Various cost cutting measures are being taken in a structured manner.
 Besides, different market segments are being explored to increase the
 order book and thereby better capacity utilization. It is expected that
 performance in current year will be much better. Company had undertaken
 an expansion project to increase the capacity by 50%. Project has been
 commissioned on 28 April 2011.
 
 DIRECTORS
 
 Mr. Rakesh Nangia, Director of the Company is liable to retire by
 rotation and being eligible offer himself for reappointment at the
 ensuing Annual General Meeting.
 
 There are no inter-se relationships of all or any of the directors in
 terms of disclosure requirements of the listing agreement with the
 stock exchange, except that Mr. Ashok Jaipuria and Mr. Ambrish Jaipur
 ia are relative of each other.
 
 STATUTORY STATEMENTS
 
 Following information as per the requirements of the Companies Act,
 1956 is given in separate statements annexed hereto, which form part of
 this report.
 
 a) Particulars of employees pursuant to section 217(2A) of the
 Companies Act, 1956
 
 b) Energy conservation, technology absorption and foreign exchange
 inflow/outgo pursuant to section 217(1 )(e) of the Companies Act, 1
 956.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT
 
 In accordance with the provisions of section 21 7[2AA) of the Companies
 Act, 1956, your directors state that:
 
 (i) In the preparation of the annual accounts, applicable accounting
 standards have been followed.
 
 (ii) Accounting policies selected were applied consistently.
 Reasonable and prudent judgments and estimates are made so as to g ive
 a true and fair view of the state of affairs of the Company as on 3
 Is1 March, 2012 and of the profit of the Company for the year ended on
 that date.
 
 (iii) Proper and sufficient care has been taken for the maintenance of
 adequate accounting records in accordance with the provisions of the
 Companies Act, 1956, for safeguarding the assets of the Company and for
 preventing and detecting fraud and other irregularities.
 
 (iv) The annual accounts of the company have been prepared on a going
 concern basis.
 
 CORPORATE GOVERNANCE
 
 A Management Discussion and Analysis Report is annexed and form part of
 this report.
 
 A separate report on Corporate Governance along with Auditors
 certificate on compliance of conditions of Corporate Governance as
 stipulated in clause49 of the listing agreement with the stock exchange
 form part on this report.
 
 RE-APPOINTMENT OF AUDITORS
 
 M/s. B.K. Shroff & Company, Chartered Accountants, Statutory Auditors
 of the Company will retire at the ensuing AGM and being eligible offers
 themselves for reappointment.  The Company has taken a certificate from
 the auditors to the effect that their re-appointment if made, would be
 in accordance with the provisions of section 224[1B) of the Companies
 Act, 1956.
 
 TRADE RELATIONS
 
 The Board desires to place on record its appreciation of the support
 and co-operation that your company received from suppliers, processors
 distributors, dealers, bankers and all others associated with your
 company. Your company regards them as partners in its journey of growth
 and progress.
 
 PERSONNEL
 
 The Board wishes to place on record its appreciation of the
 contribution made by all employees in improving overall performance
 during the year.
 
 APPRECIATION
 
 Your directors wish to place on record their appreciation of the
 whole-hearted and continued support extended by the investors, bankers
 and financial institutions.
 
                                        For and on behalf of the Board 
 
                                                        Ashok Jaipuria 
 
                                                              Chairman
 
 New Delhi 
 
 18th May, 2012