UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-KSB
(X)	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
			 EXCHANGE ACT OF 1934

For the fiscal year ended March 31,2005
OR
( )	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
		SECURITIES EXCHANGE ACT OF 1934

Commission File Number         0-119698
COSMO COMMUNICATIONS CORPORATION
(Exact name of registrant as specified in its charter)
FLORIDA                              59-2268005

Unit 2 - 55 Travail Road, Markham Ontario, Canada
(Address of principal executive offices)

Registrant's telephone number including area code:    (905) 209-0488

Securities registered pursuant to Section 12 (b) of the Exchange Act:
	Common Stock,  $0.05 par value

Check whether the registrant (1) 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) and has been subject to such filing
requirements for the past 90 days.
Yes X        	No 	.

Check if there is no disclosure of delinquent filers pursuant to Item 405
Of Regulation S-K is not contained in this form, and no disclosure will be
contained, to the best of the Registrant's knowledge, in definitive
Proxy or information statements incorporated by reference in Part III
Of this Form 10-K or any amendment to this form 10-K. ____

The registrant's revenues for the fiscal period ended March 31, 2005
were $35,452,000.

As of March 31, 2005, the market value of the registrant's Common Stock
held by non-affiliates of the registrant was not able to be determined
as there were no quotes on the bid and ask price of the Company's
common stock.

The number of shares outstanding of the registrant's common stock is
29,104,000 as of March 31, 2005.

DOCUMENTS INCORPORATED BY REFERENCE		None







PART 1
Forward-Looking Statements and Associated Risk

This annual report of Cosmo Communications Corporation (the "Company")
Contains forward-looking statements within the meaning of Section 21E of
The Securities Exchange Act of 1934, including statements regarding,
among other items, (i) the Company's growth strategies, (ii) anticipated
trends in the consumer electronics industry, and (iii) the Company's
ability to obtain and maintain adequate financing for its operations.
These forward -looking statements are based largely on the Company's
expectations and are subject to a number of risks and uncertainties,
certain of which are beyond the Company's control.  Actual results could
differ materially from these forward-looking statements as a result of
such uncontrollable factors, and, more specifically, interest rate
levels, availability of financing, consumer confidence and preferences,
the effectiveness of the Company's competitors, and costs of materials
and labor.  In light of these risks and uncertainties, there can be
no assurance that the forward-looking information contained in this
annual report will not materially differ from actual results.

Item I.  Description of Business

Since its inception in March 1983, the Company, through its subsidiaries,
 imported, marketed and distributed in the United States and Canada consumer
 electronic products, including televisions, DVD players, video cassette
 recorders, audio equipment, digital alarm clocks, quartz alarm clocks,
 quartz wall clocks, clock radios and combination of clocks, radios and
telephones.  The audio equipment includes a full line of audio products,
 including personal cassette players, portable stereos and music centers
with and without compact disc players.  During the year ended March 31,
 2005, substantially all of the Company's sales activity related to
customers located in Canada, with new business opened up in United
Kingdom.
The Company's products are marketed under various labels to mass
merchandisers, drug store chains, specialty chain stores and other high-
volume retailers.  The Company's products are generally manufactured by
its parent company and subcontractors in China.

Transaction History
During 2001, a change in control of the Company occurred.  In April 2000, the
 Company and certain controlling shareholders of the Company at that time
 entered into a Stock Purchase Agreement pursuant to which the Company agreed
 to sell shares of common stock representing 84.89% of the outstanding common
 stock to Master Light Enterprises Ltd. ("Master Light"), a subsidiary of
Starlight International Limited ("Starlight"), a publicly held company traded
on the Hong Kong Stock Exchange, for $1 million.  Pursuant to an amendment to
the Stock Purchase Agreement, in January 2001, Master Light acquired
1,347,420 shares of the Company's Common Stock, representing 49.11% of the
Company's Common Stock outstanding at that time, and representatives of
Starlight were appointed to the Board of Directors of the Company replacing
the incumbent directors. In August 2001, the transactions contemplated by the
Stock Purchase Agreement, as amended, were consummated and, after rescinding
the purchase of 1,347,420 shares, Master Light acquired from the Company
26,585,008 shares of the Company's Common Stock, representing 91.3% of the
Company's currently issued and outstanding Common Stock.    In September
2001, additional capital contributions from Starlight allowed the Company to
discharge all the Company's obligations to its lending institutions and provided
further capital to allow the Company to meet its ongoing operational needs.
Starlight owns and operates a number of subsidiaries throughout the world
engaged in the manufacture, sale and distribution of consumer electronic
products.

Management believes Starlight will provide enhanced resources for the
Company to operate more competitively.  Management believes that new
 products and new product designs drive sales growth. With the capital that
 is now available through Starlight, the Company's products have improved in
quality and with more updated designs.  This has allowed the Company to
improve sales and continued strong sales growth, barring no significant
deterioration in the economic conditions and more particularly, in consumer
spending.
Since controlled by Starlight International Limited in August 2001, the
Company has adopted a new fiscal year to coincide with its parent company's
fiscal year for ease of consolidating accounts in the parent's annual report.

Products
Clocks - The Company manufactures and markets a wide range of clocks,
including electronic digital alarm clocks, quartz alarm clocks and quartz
 wall clocks.
 The Company currently offers approximately 20 models which retail at
various prices ranging from approximately $5 to $20.  The Company's
electronic digital clocks contain microprocessors, printed circuit boards,
light emitting diodes and ceramic buzzers. Subcontractors in the People's
Republic of  China manufacture all the Company's wall clocks and battery
operated quartz alarm clocks.
Clock Radios - The Company
currently offers 20 models, with retail prices ranging
from approximately $9  to $20.  The Company's electronic digital clock
radios contain audio components as well as components similar to those
in its electronic digital clocks.

Compact Disc Players - The Company currently offered approximately 23
models of compact disc player and recorder products with retail prices
 ranging from $12 to $60.  Some of the products are manufactured by our
 parent company and some are by subcontractors in the People's Republic
 of China under the Company's specifications.
FRS and GMRS - the Company is piloting a family radio system for
families and extended families.
Telephones - the company also markets telephones both corded and cordless,
 including the 5.8GHz cordless.

Television and DVD players - the Company marketed 5 models of television
 including the popular flat screen models. DVD Players a new product line
contributed to the sales growth and accounted for over 44% of the total
sales in 2005.
Licensed Products - The Company is a party to a distribution agreement to
market in Canada audio products utilizing the brand name "Audiovox".

Marketing
The Company's marketing strategy is targeted at high volume retailers with
Broad distribution networks such as mass merchandisers, drug and other
specialty chain stores, and other retailers.  The Company did not make any
sales in the US during 2005 but has made steady progress in establishing a
wholesaledistribution network in Canada.
The Company generally sells its products using its own brand name "Cosmo" and
licensed brand names. It also offers products made under the private label of
its customers.
The Company continues to look for opportunity to add licensed brand names to
 Its product line. And large orders to make private labels as a way to grow

the business.
The Company's current strategy for re-entering the US market is to locate
niche markets. So far it has not been able to sell in the US market, which
is highly competitive. The following customers illustrate the Company's
primary marketing channels and customers in 2005.
Wal-Mart Canada Inc.- Mass Merchandiser
Western Grocers - Supermarket

The Company believes that its sales to high volume retailers depends upon its
 ability to deliver a large volume of attractive and reliable items at prices
 generally at or below those of its competitors.
Substantially all of the Company's Canadian sales are generated by either the
 Company's full-time sales staff or sales representatives.  All of the
Company's sales in 2005 were to customers within Canada.  See Note 13 "Notes
to Consolidated Financial Statements" for financial information about foreign
and domestic operations.
Sales to the Company's largest customer, accounted for approximately 90% of
sales in 2005 (90% in 2004).  The loss of this customer would have a
significantly negative impact on the Company.
The Company's products are generally sold with a one year limited warranty on
 labor and parts.

Manufacturing and Supply
Since being a member of the Starlight group in Hong Kong, the Company has
used the manufacturing expertise of Starlight in providing product research
and new product design.  Substantially all of the CD players are
manufactured by Starlight.  Subcontractors in the People's Republic of China
make other products in accordance with the Company's specifications.
 The Company performs quality control inspections on the premises of its
subcontractors, and also inspects its products upon their arrival in its
warehouse in Canada.
All of the components and raw materials used by the Company are available
 from several sources of supply and the Company does not anticipate that the
 loss of any single supplier would have a material adverse effect on its
 business, operations or financial condition.

Product Development
During 2005, the Company continued to grow the business related to flat
screen television. and DVD products  Sales generated from this category
accounted for 44% of total sales.(21% in 2004)  New products were developed
in conjunction with the support of the parent company. During the year ended
March 31, 2005, the Company did not spend any significant amount in product
development.

Competition
The consumer products industry in which the Company operates is characterized
 by intense price competition, ease of entry and changing patterns of
consumer demand.  Sales volume and profitability of particular consumer
 products can change significantly within a relatively short period.
Accordingly, the Company is highly dependent on the ability of its management
 to anticipate and respond quickly to changes in trends for its products.
The Company believes that it has the important factors necessary to compete
 including name recognition, price, quality reliability, attractive
packaging, speed of delivery to customers and new or additional product
eatures.  The Company believes that its future success will depend upon its
ability to develop and manufacture reliable products, which incorporate
developments in technology and satisfy consumer tastes with respect to style
and design.
 Further, the Company's ability to market such products at competitive prices
is necessary in order to compensate for the lack of strong consumer name
recognition.  In 2005, the Company remained competitive in the market place,

 principally owing to the support of its parent company in product
development, sourcing sub-contractors , monitors quality control and
delivery.  The Company believes that, through its parent's support, it is a
significant distributorof compact disc players products

Foreign Operations
The Company's sales, warehousing and administration are headquartered in
Toronto, Canada.  Sourcing, supply and quality inspection operations are
based in Hong Kong.   Foreign currency exposure is limited to Canadian and
Hong Kong exchange rate fluctuation.
The Company's cost structure is affected by import duties, loss of favorable
 tariff rates for products produced in the countries in which the Company
subcontracts the manufacture of goods, imposition of import quotas,
interruptions in sea or air transportation and political or economic changes
in countries from which components or products are exported or into which
 they are imported.
The Company will continue to subcontract its manufacturing needs to
subcontractors in the People's Republic of China.

Product Liability
The Company maintains product liability coverage for the Company's operations
in the aggregate amount of $3,000,000.  The Company has not been the subject
of any product liability litigation.

Government Regulation
The Company's operation is not regulated by the Federal Government nor any
State authorities.  Import tariffs are payable on some products in accordance
with the prevailing tariff rates.

Employees
As of March, 2005, the Company had 35 full-time employees, including 1 in
Hong Kong and 34 in Canada.  In Hong Kong, one employee is engaged in
sales and sourcing support duties.  In Canada, 20 employees were engaged in
 warehouse distribution and service operations and 15 were sales,
administrative and executive personnel.  The Company believes that its
relations with its employees are satisfactory.

Where You Can Find More Information
The Company files annual, quarterly and special reports, proxy statements and
 other information with the SEC.  The Company's SEC filings are available to
the public over the Internet at the SEC's web site at http://www.sec.gov.
the Company's documents which are filed may be read or copied at the SEC's
public reference room in Washington, D.C., at 450 Fifth Street, N.W.,
Washington, D.C. 20549.  Please call the SEC at 1-800-SEC-0330 for further
information on the public reference room.

Item 2.	Description of Property.
The Company's executive offices and principal domestic manufacturing
warehouse facilities are located in a 35,000 square foot building at 55
Travail Road, Markham, Ontario, Canada. Both the land and building are leased
 by the Company under the terms of a lease expiring in October 31, 2008.
 Monthly rental is $26,500.  The Company believes that its current facilities
 are satisfactory for its present needs and that insurance coverage is
adequate for the premises.
Minimum rental commitment is $314,332 in 2005 under the existing lease.

Item 3.	Legal Proceedings.
The Company is from time to time involved in routine litigation incidental to
 its business most of which is adequately covered by insurance and none of
which, in the opinion of management, is expected to have a material adverse
effect on the Company.

Item 4.	Submission of Matters to a Vote of Security Holders.
During fiscal 2005, the Company did not submit any matter to a vote of
security holders.


PART II

Item 5.	Market for Common Equity and Related Stockholder Matters
Since 2001, the Company's Common Stock has been removed from the OTC Bulletin
 Board under the symbol "CSMO."  There were no quotes of high and low during
 2005 There were 166 record holders of the Common Stock on June 30, 2005.
 However those shares being held at various clearing houses, including
Cede & Company have not been broken down.  Accordingly, the Company
believes there are many more beneficial owners of the Company's Common
Stock whose shares are held in "street name", not in the name of the
individual shareholder
It is the present policy of the Company's Board of Directors to retain
earnings.
The Company has not declared any dividends in the past.  Any payment of cash
dividends in the future will be dependent upon the financial condition,
capital requirements and earnings of the Company and other factors, which the
Board of Directors may deem relevant.

Item 6.  Management's Discussion and Analysis
Results of Operations
The following table sets forth, for the periods indicated, the relative
 percentages that certain items in the Company's Consolidated Statements of
Operations bear to sales and the percentage of change in those items from
period to period:




       As a Percent of Sales
				Quarter Ended	  Year Ended    Year Ended
				March 31,        	   March 31,	March 31,
				   2003			2004		  2005

     				  (audited)       	     (audited)		(audited)

Sales				  100%			100%		   100%

Cost of Sales		 	 90.2%			91.6%		  92.6%

Gross Margin			  9.8%			8.4%		   7.4%

Commission Income		   3.1%			4.0%		   5.2%

Selling, General and
 Administrative expenses  		 9.3%			9.4%		   9.4%


Income(loss)from
operations	 		 2.4			2.2%		   2.4%


Other expense		 	 1.9%			1.4%		   0.7%

Net Income			  3.0%			2.2%		   1.7%


Comparison of the year ended March 31, 2005 to the year ended March 31, 2004.
And March 31, 2003:
Net income for 2005 declined by 48 basis points as a percentage of sales
 compared to 2004 and 90 basis points in 2004 compared to 2003.
Sales revenue increased by 10% in 2005, 63% in 2004 but gross profit margins
 continued to decline from 9.8% in 2003 8.4% in 2004 and 7.4%
in 2005, reflecting that we operate in a very competitive segment of the
 consumer electronic market. In general, additional manufactured and overhead
 costs cannot be passed on easily to customers of the products we sell.

Sales revenue

Sales increased by 10% or $3.3 million in 2005.  In 2004, we began
selling flat screen television and DVD players.. This product category is now
an important component of our sales and accounts for approximately 44% of
total sales in 2005.
Our other growth contributors include marketing one of our licensed brand
names
in the audio line.
We also grew our sales revenue by opening new accounts in Canada and in
United Kingdom.  Our new customers have broadened to include specialized
electronic distributors, home hardware stores and general department
stores.

Commission revenue

 As an alternative to direct sales, we continued to broker sales
and earned higher income in commissions in 2005.  Last year, we began to
handle defective returns for certain major television manufacturers, and
in 2005 we have grown in this category of revenue.  Commission income
increased by 28% as a percentage of sales or $511,000.in 2005.

Cost of sales

As discussed earlier, due to the highly competitive nature in the consumer
electronic market, we adopted the strategy to sacrifice gross profit
 margin to achieve growth in sales.  Cost of sales increased by 110 basis
points over 2004 as a percentage of sales.  Sourcing of products is assisted
 by the expertise and resources of our parent company, the Starlight Group,
 which is a major manufacturer of consumer electronics products in the
People's Republic of China.

Operating expenses

Selling and administrative expenses as a group were similar in the current
And past two years. Salaries and wages increased by 22% or $205,000 in
 2005 mainly to keep up with increase in revenue activities.
As an industry standard practice, we granted advertising and handling
allowances to our major customers as our contributions to promote and handle
our products in stores.  This category increased by 7% in 2005 or $64,000,
which was in line with the increased in sales activities.

We were able to keep most of the fixed portion of the administrative and
general expenses similar to the past years.  We do not foresee any major
change in our overhead structure in 2006.

Interest expense increased by 16% in 2005 or $23,000.  The increase was due
primarily to higher activities in letter of credit sales together with a
small increase in interest rates in the past twelve months.  A portion
of the interest expense ($92,500)was accrued on the loan due to our parent
company   The rate of interest applied to the loan balance was unchanged

from 2004.  During 2005, we have not borrowed additional amount from
our parents for long term use and have not repaid any principal amount
nor interest.  We do not expect any change in our long term financing
requirements in 2006.

Depreciation and amortization expense of $ 32,000 ($21,000 in 2004) was
substantially unchanged from the prior year.  We did not incur any major
 expenditure in plant and equipment in 2005 and we have no plans to invest
in equipment and machinery in 2006.


Liquidity and Capital Resources

At March 31, 2005, our working capital ratio was 1.43 compared to 1.15 in
2004.

During the year, accounts receivable was substantially reduced but
inventory, particularly in the DVD category was built up in preparation of
the "back to school" sale in the summer months.
 We also reduced our trade payable owed to our parent company substantially
at March 31, 2005.

We did not borrow additional funds for long-term purpose in 2005. Our main
sourceof financing came from our parent company, which did not require us
to pay down principal nor interest on the loan due them.  Amount due on
the tradepayable balance is interest free.  With the continued support of
our parent company, we expect to have adequate working capital in the next
twelve months for our operation.

We made small expenditures in plant and equipment in 2005 as capital
Expenditure is not a major part for our growth.  We have no plan to make
major acquisitions in the next twelve months.

Risk management

We are subject to risk from exchange rate fluctuations.  While our product
purchases are transacted in United States dollars, most transactions among
the suppliers and subcontractors are effected in HK dollars.  Accordingly,
 fluctuations in Hong Kong monetary rates may have an impact on our cost of
goods.  Furthermore, appreciation of Chinese currency values relative to the
Hong Kong dollar could increase the cost of the products
manufactured in the People's Republic of China, and thereby have a negative
 impact on us as well. Since a portion of our sales are in Canadian dollars,
 we are at risk with regards to the conversion of Canadian dollars to US
dollars to pay our suppliers.  Therefore, fluctuations in the conversion
rate may have an impact on us.
Based on our evaluation of anticipated changes in exchange rates,
we may from time to time purchase forward exchange contracts to
hedge against these risks.  However, the Hong Kong dollar remains the
functional currency of our Hong Kong subsidiaries, and we do not hedge
against risks of foreign currency transaction or translation loss.

Item 7.	Financial Statements.
See the Company's Consolidated Financial Statements following page 14 of
this Annual Report on Form 10-KSB.
Item 8.	Changes in and Disagreements With Accountants on Accounting
and Financial Disclosure.
The Company has reported no disagreements






PART III

Item 9.	Directors, Executive Officers, Promoters and Control Persons;
 Compliance with Section 16(a) of the Exchange Act.
Directors and Executive Officers
Pursuant to the Bylaws of the Company, the number of directors constituting
 the full Board of Directors has been fixed by the Board at three (3).  At
the Annual Meeting of Shareholders,  three (3) individuals will be elected to
 serve as directors until the next annual meeting and until their successors
 are duly elected, appointed and qualified.
Set forth below is the name, age, principal occupation during the past five
 years and other information concerning each director and executive officer.

Name			Age		Position
Philip Lau		57		Chairman of the Board of Directors, and
President
Peter Horak		64		Chief Executive Officer, Canada
Yu Wing Kin		53		Vice President, Administration, Hong Kong
Carol Atkinson		56		Director
Jacky Lau		46		Director

Mr. Philip Lau, Chairman of the Board of Directors, was appointed in
January 2001 after Starlight International Limited acquired 49% of the
voting shares of the Company.  Since 1987, Mr. Lau has been the Chairman of
Starlight International, an electronics company the shares of which are
 listed on the Hong Kong Stock Exchange, and has extensive experience in
the consumer electronics business.
Mr. Peter Horak, President of Cosmo Canada, was appointed as the Chief
Executive Officer in January 2001.  Mr. Horak was the co-founder of Cosmo's
Canadian subsidiary and has been its chief executive officer since 1988.  Mr.
 Horak is the Company's chief sales, marketing, and sourcing executive.
Mr. Kin has served as Vice President of Administration of Cosmo Hong Kong
since joining the Company in August 1978.
Ms. Atkinson has served as a director of the Company since January 2001
after Starlight International Limited acquired its shares.   Ms Atkinson
is a licensed public accountant.
Mr. Jacky Lau has served as a director of the Company since January 2001
 after Starlight International Limited acquired its shares.  He joined
Starlight International in 1987 as the Director of Material Sourcing.
Mr. Philip Lau, Mr. Jacky Lau and Ms. Atkinson are siblings.
Directors are elected annually by the shareholders and hold office until
the next annual meeting and until their respective successors are elected
and qualified. There are no other family relationships among any of the
 Company's directors and executive officers.



Section 16(a) Beneficial Ownership and Reporting Compliance
The directors and executive officers of the Company, and the owners of
more than ten (10%) percent of the Company's outstanding Common Stock,
are required to file reports with the Securities and Exchange Commission,
 reporting changes in the number of shares of the Company's Common Stock
beneficially owned by them and provide the Company with copies of all
such reports.  Based solely on its review of the copies of such reports
furnished to the Company and written representations from the executive
officers and directors, the Company believes that all reports were
timely made for the quarter ended March 31, 2005


Item 10.		Executive Compensation
        Summary Compensation Table.
The following table sets forth, for the 2005 and 2004 fiscal periods,
respectively, compensation paid or accrued by the Company to or on behalf
of the Company's Chief Executive Officer and each other executive officer
 whose total annual salary and bonus for the 2005 fiscal year totaled
$100,000 or more
(collectively, the "Named Executive Officers").

       Annual Compensation(1)
        		2005		2004	   	2005	2004	All 										Other
                   (12 months			    	(12 months
	         ended				    ended
 	      March 31,)			                March 31,)
Name and Principal Position	Salary ($)	Bonus ($)	Compensation
___________________________________________________________________________
Starlight International
5/F, Shing Dao Industrial Building
232 Aberdeen Main Road
Hong Kong
Philip Lau	none		none	   	none	  none 	(1)
Peter Horak
CEO, Canada	143,000	              133,000                none	   none	(1)
Carol Atkinson        none	               none	              none	    none	(1)
Jacky Lau	 none		none	              none	    none	(1)


(1) The column for "Other Annual Compensation" has been omitted because
there is no compensation required to be reported in such column.  The
aggregate amount of perquisites and other personal benefits provided to
each Named Executive Officer is less than 10% of the total of annual
salary and bonus of such officer.

Option Grants Table.  No options were granted or exercised during 2005.

Aggregated Fiscal Year-End Option Value Table.   No Named Executive Officers
 held any options as of the fiscal quarter ended March 31, 2005.

Long-Term Incentive and Pension Plans.  The Company does not have any long-
term incentive or pension plans.

Compensation of Directors.  Directors who are not officers of the Company
 generally receive meeting attendance fees of $300. However, each such
director waived his right to receive such fees during fiscal 2005.
Annual retainers are not currently provided to directors; however, such
retainers may be re-instituted in the future.  Directors are eligible
to receive grants of options under the Company's stock option plan.
No stock options were granted to any directors of the Company during
fiscal 2005.

Item 11.	Security Ownership of Certain Beneficial Owners and Management.
The information contained in the table was furnished by the persons listed
 therein.  The calculations of the percent of shares beneficially owned are
based on 29,104,000 shares of common stock outstanding on July 31, 2005.
  None of the persons named below own any options or warrants to purchase
shares of the Corporation's common stock




Name and Address			Beneficial			Current
Owner of Common Stock 	Percent of Class
Starlight International 		26,508,008(1)			91.3%
5/F, Shing Dao Industrial
Building 232 Aberdeen Main Road,
5th Floor, Hong Kong
Philip Lau			26,585,008(1)			91.3%

Carol Atkinson			NONE

Jacky Lau			NONE

Peter Horak			257,500				0.9%


All Directors and Executive Officers as a
Group (4 persons)			26,842,508(1)			92.2%

(1) Includes 26,585,008 shares owned by Master Light Enterprises, Ltd.,
      of which Mr. Philip Lau is the controlling stockholder.

Item 12. 	Certain Relationships and Related Transactions.

As of March 31, 2005, the Company owed approximately $4,445,000 to its parent
 group of companies, principal shareholders of the Company. $2,712,000 was
owed in the form of trades payable.  The balance was in the form of a loan.
  During fiscal 2005, the Company purchased $21,703,000 ($19,392,000 in 2004)
 of products from its parent group of companies and received $344,000
 ($243,000 in 2004) as commissions in the sales brokerage activities.
..

Item 13.	Exhibits, Lists and Reports on Form 8-K.

(a)	1.	Financial Statements:

Reference is made to the index to the Company's Consolidated Financial
 Statements following page 17 of this Annual Report on Form 10-KSB.

2.	Financial Statement Schedules:
These schedules are otherwise contained within the Company's Consolidated
Financial Statements following page 17 of this Annual Report on Form 10-KSB.

3.	Exhibits:

Exhibit No.	 Description
3.1.1	Registrant's Articles of Incorporation, as amended
3.2	Registrant's Bylaws (1)
10.1 Amended and Restated 1990 Stock Option Plan (Compensatory Plan) (2)
Stock Purchase Agreement dated April 28, 2000 by and among Company,
 Amancio Victor Suarez, Carlos Ortega, Amancio J. Suarez and Master Light
 Enterprises Ltd., as assignee of Starlight Marketing Development Ltd. And
 the related letter agreements supplementing and modifying the terms of
the Stock Purchase Agreement April 19, 2000, July 13, 2000, July 27, 2000,
 November 20, 2000 and August 20, 2001.

22.1		List of Registrant's Subsidiaries (3)


(1) Incorporated by reference to the exhibit with the same number filed
(2)  with

 the Registrant's Registration Statement No. 2-83088.
(3) Incorporated by reference to  exhibit 10.2 filed with the
(4) Registrant's
 Annual Report on Form 10-K for fiscal 1990.
(5) Filed in part herewith, and incorporated by reference to (i) exhibits
 10.8, 10.9, 10.10, 10.11, 10.12 and 10.13 filed with the Registrant's
Annual Report on Form 10-K for fiscal 1989, and (ii) exhibits 10.4 filed
with the Registrant's Annual Reports on Form 10-K for fiscal 1990, 1991
and 1992, respectively.
(b) 	Reports on Form 8-K
No reports on Form 8-K were filed during the last quarter of the period
covered by this report.
Signatures
In accordance with Section 13 or 15(d) of the Securities Exchange Act of
1934, the registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
COSMO COMMUNICATIONS CORPORATION
DATED: June 3, 2005
/s/ Peter Horak
PETER HORAK
Chief Executive Officer,Canadian operation

In accordance with the Exchange Act of 1934, this report has been signed
below
 by the following persons on behalf of the registrant and in the capacities
 and on the dates indicated.

DATED: June 3, 2005
/s/ Philip Lau
PHILIP LAU,
Chairman of the Board
President

/s/ Peter Horak
PETER HORAK
Chief Executive Officer


Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
I, Philip Lau, certify that:
1. I have reviewed this annual report on Form 10-KSB of Cosmo
Communications Corporation;
2. Based on my knowledge, this annual report does not contain any
3. untrue
 statement of a material fact or omit to state a material fact necessary
 to make the statements made, in light of the circumstances under which
 such statements were made, not misleading with respect to the period
covered by this annual report;
4. Based on my knowledge, the financial statements, and other financial
information included in this annual report, fairly present in all
 material respects the financial condition, results of operations and cash
 flows of the registrant as of, and for, the periods presented in this
annual reports;
5. The registrant's other certifying officers and I are responsible for
 establishing and maintaining disclosure controls and procedures (as
defined
 in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this annual report is

being prepared;
b) evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the
filing date of this annual report (the "Evaluation Date"); and
c) presented in this annual report our conclusions about the
 effectiveness of the disclosure controls and procedures based on our
 evaluation as of the Evaluation Date;
6. The registrant's other certifying officers and I have disclosed,
based on our most recent evaluation, to the registrant's auditors
and the audit committee of registrant's board of directors (or
persons performing the equivalent function):
a) all significant deficiencies in the design or operation of
b) internal
 controls which could adversely affect the registrant's ability to
record,
 process, summarize and report financial data and have identified for
the
 registrant's auditors any material weaknesses in internal controls;
and
c) any fraud, whether or not material, that involves management or
other employees who have a significant
role in the registrant internal controls; and
7. The registrant's other certifying officers and I have indicated in
this annual report whether or not there were significant changes in
internal controls or in other factors that could significantly affect
internal controls subsequent to the date of our most recent evaluation,
including any corrective actions with regard to significant deficiencies
and material weaknesses.
/s/  Philip Lau
Philip Lau
Chairman and President
Date:	_June 3, 2005



Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
I, Peter Horak, certify that:
1.I have reviewed this annual report on Form 10-KSB of Cosmo Communications
Corporation;
2.Based on my knowledge, this annual report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to
make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by
this annual report;
3.Based on my knowledge, the financial statements, and other financial
 information included in this annual report, fairly present in all material
 respects the financial condition, results of operations and cash flows of
the registrant as of, and for, the periods presented in this annual reports;
4,The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this annual report is
 being prepared;
b) evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the
filing date of this annual report (the "Evaluation Date"); and
c) presented in this annual report our conclusions about the
effectiveness of the disclosure controls and procedures based on our

evaluation as of the Evaluation Date;
5.The registrant's other certifying officers and I have disclosed, based on
 our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or persons performing the
equivalent function):
a) all significant deficiencies in the design or operation of internal
 controls which could adversely affect the registrant's ability to record,
 process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's internal
 controls; and
6.The registrant's other certifying officers and I have indicated in this
annual report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal
controls subsequent to the date of our most recent evaluation, including
any corrective actions with regard to significant deficiencies and
    material weaknesses.


/s/  Peter Horak
Peter Horak
Chief Executive Officer
Date:	June 3, 2005






COSMO COMMUNICATIONS CORPORATION
CONSOLIDTED FINANCIAL STATEMENTS
YEARS ENDED MARCH 31, 205 AND 2004


REPORT OF INDENDENT REGISTERED PUBLIC ACCOUNTING
FIRM										1
CONSOLIDATED BALANCE SHEETS 						2
CONSOLIDATED STATEMENTS F CHANGES IN STOCKHOLDERS'
EQUITY										3
CONSOLIDATED STATEMENTS OF EARNINGS					4
CONSOLIDATED STATEMENTS OF CASH FLOWS					5

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS				         6-14




REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Stockholders of
Cosmo Communications Corporation:

We have audited the accompanying consolidated balance sheets of Cosmo
 Communications Corporation as at March 31, 2005 and 2004
and the consolidated statements of changes in stockholders' equity,
earnings, and cash flows for the years then ended. These financial
statements are the responsibility of the Company's management.  Our
responsibility is to express an opinion on these consolidated financial
 statements based on our audit.

We conducted our audit in accordance with auditing standards of the Public
Company Accounting Oversight Board (United States).  Those standards require
 that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement.  An audit
 includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements.  An audit also includes assessing
the accounting principles used and significant estimates made by management,
 as well as evaluating the overall financial statement presentation.  We
believe that our audit provides a reasonable basis for our opinion.

In our opinion, such consolidated financial statements referred to above
present fairly, in all material respects, the financial position of Cosmo
 Communication Corporation as at March 31, 2005 and 2004 and the results of
its operations changes in its stockholders' equity and its cash flows for the
 years ended in accordance with accounting principles generally accepted in
the United States of America.

SF Partnership
Chartered Accountants
Toronto,Canada

June 3, 2005


COSMO COMMUNICATIONS CORPORATION
Consolidated Balance Sheets
March 31, 2005 and 2004
($ in 000's)
									(note 15)
							2005		2004
ASSETS
Current
Cash						$	629	$	770
Accounts receivable (note 3)				           1,833	            4,128
Inventories					           5,066	            2,534
Prepaid and sundry assets					   3		    3

						           7,531	            7,435
Equipment (note 4)						 73	                91
Deferred Charges, net of depreciation				 13		  20
Deferred Taxes 						 23		126

						$	7,640	$	7,672

LIABILITIES
Current
Accounts payable and accrued charges		$	910	$	685
Income taxes payable					 40		  47
Accounts payable to parent company (note 5)			2,712	           4,228
Loan from parent company (note 6)				1,617	           1,525

							5,279	           6,485

STOCKHOLDERS' EQUITY
Capital Stock (note 7 and 9)					1,455	          1,455
Additional Paid In Capital					26,273	         26,273
Accumulated Other Comprehensive Loss			(486)	        (1,035)
Accumulated Deficit 					(24,881)	        (25,506)

							2,361	          1,187

						$	7,640	$        7,672

APPROVED ON BEHALF OF THE BOARD

COSMO COMMUNICATIONS CORPORATION
Consolidated Statements of Changes in Stockholders' Equity
Years Ended March 31, 2005 and 2004
($ in 000's)
			     Paid in         Accumulated
			     Capital in     Other	     	       	   Total
	Number of   Capital     excess of     Comprehensive    Accumulated    S/Holders
	Shares	    Stock	     Par Value     Loss		Deficit	   Equity

Balance, April 2, 2003
	29,104,000 $1,455	  $26,273        $ (1,318)		$(26,225)	    $   185
Foreign exchange on translation
	-	     -	       -	          283		-	          283
Net earnings
	-	    -	       -	         -			719	         719
Balance, March 31, 2004
	29,104,000  $ 1,455 $26,273       $ (1,035)	           $(25,506)     $ 1,187
Foreign exchange on translation
	      -                -	      -	           549		       -	         549
Net earnings
	      -	         -	      -	            -			    625	        625

Balance, March 31, 2005
	29,104,000 $ 1,455 $26,273     $  (486)	            $   (24,881)    $ 2,361



COSMO COMMUNICATIONS CORPORATION
Consolidated Statements of Earnings
Years Ended March 31, 2005 and 2004
($ in 000's)
(except per share data)
								   (note 15)
							 2005	     2004
Sales						$	35,452	$   32,159
Cost of Sales 						32,846	    29,476

Gross Profit						2,606	      2,683
Commission and Other Income				1,854	      1,283

							4,460	       3,966
Expenses
General and administrative					1,708	       1,382
Selling and delivery						1,613	       1,616
Financial							   205               177
Exchange loss 						     36                 80
Amortization						     32                 21

							3,594	        3,276

Earnings Before Income Taxes				   866                 690
Income taxes - current					    137		97
Income taxes - deferred					    104 	          (126)

							    241                (29)
Net Earnings 					    $	    625	   $      719

Earnings per weighted average number of
shares outstanding - basic and diluted		     $	   0.02	   $      0.02

Weighted average number of shares
outstanding - basic and diluted			29,104,000	    29,104,000


COSMO COMMUNICATIONS CORPORATION
Consolidated Statements of Cash Flows
Years Ended March 31, 2005 and 2004
($ in 000's)
								   (note 15)
							2005	      2004
Cash Flows from Operating Activities
Net earnings					       $	625	$     719
Adjustment for:
Amortization						   32	         21
Deferred taxes						  104	     (126)

					  		  761              614
Change in non-cash working capital
Accounts receivable					2,295	   (1,398)
Inventories					            (2,532)	      (517)
Prepaid and sundry assets					     -	        36
Accounts payable and accrued charges			   226	     (104)
Accounts payable to parent company				(1,517)	      996
Income taxes payable					      (8)	       47
Foreign currency translation adjustment			     549	     283

							   (226)	    (43)

Cash Flows from Investing Activities
Additions to equipment					(8)	     (89)

Cash Flows from Financing Activities
Proceeds of advances from parent company			93	       87

Net (Decrease) Increase in Cash				(141)	    (45)
Cash - beginning of  year					770	     815

Cash - end of year					     $	629        $     770



Supplemental Disclosure of Cash Flow Information:
Cash paid for Interest				     $	205    	$     177

Cash paid for Income taxes				     $	144	$      76

COSMO COMMUNICATIONS CORPORATION
Notes to Financial Statements
March 31, 2005 and 2004
($ in 000')
(except per share data)

1.	Nature of Operations
Cosmo Communications Corporation and subsidiaries (the "Company") market
and distribute consumer electronic products.  The Company has operations in
Hong Kong and Canada.
2.	Summary of Significant Accounting Policies
a) Principles of Consolidation

The Company includes, in consolidation, its wholly owned subsidiaries, Cosmo
Communications Canada Corporation Inc. and Cosmo Communications (H.K.)
Limited.  All significant intercompany transactions and balances have been
eliminated upon consolidation.
b)	Inventories
Inventories are stated at the lower of cost (first-in, first-out) or market.
c)	Equipment
Equipment is stated at cost less accumulated amortization. Amortization, based
on the estimated useful lives of the assets, is provided using the undernoted
annual rates and methods:
Furniture and fixtures	20%	Declining balance
Office equipment		20%	Declining balance
Computer equipment	25%	Declining balance
Warehouse equipment	20%	Declining balance
Leasehold improvements	5 years	Straight-line

COSMO COMMUNICATIONS CORPORATION
Notes to Financial Statements
March 31, 2005 and 2004
($ in 000')
(except per share data)
2.	Summary of Significant Accounting Policies (cont'd)

d) Deferred Charges

Deferred charges consist of costs of the financing and reorganisation of the
Company and are amortized over 5 years.
e) Foreign Translation Adjustment
The accounts of the foreign subsidiaries were translated into U.S. dollars in
accordance with the provisions of  Financial Accounting Standards Board
Statement ("SFAS") No. 52.  Management has determined that the Hong
Kong dollar is the functional currency of the Hong Kong subsidiaries and the
Canadian dollar is the functional currency of the Canadian subsidiary.  Certain
current assets and liabilities of these foreign entities are denominated in U.S.
dollars.  In accordance with the provisions of SFAS No. 52, transaction gains
and losses on these assets and liabilities are included in the determination of
income for the relevant periods.  Adjustments resulting from the translation of
the financial statements from their functional currencies to United States
dollars are accumulated as a separate component of accumulated other
comprehensive income and have not been included in the determination of
income for the relevant periods.

f) Revenue Recognition

Sales are recognized upon shipment of goods as that is the point at which title
passes to the customer, net of estimated sales returns.  Revenue is recognised
if persuasive evidence of an agreement exists, the sales price is fixed or
determinable, and collectibility is reasonably assured.
g) Concentration of Credit Risks

The Company is exposed to credit risk on accounts receivable from its
customers. In order to reduce its credit risk, the Company has adopted credit
policies which includes the analysis of the financial position of its customers
and the regular review of their credit terms.





COSMO COMMUNICATIONS CORPORATION
Notes to Financial Statements
March 31, 2005 and 2004

2.	Summary of Significant Accounting Policies (cont'd)

h) Fair Value of Financial Instruments

The Company's financial instruments include cash and cash equivalents,
receivables, payables, debt and credit facilities.  The estimated fair value of
financial instruments has been determined by the Company using available
market information and valuation methodologies.  Considerable judgment is
required in estimating fair value.  Accordingly, the estimates may not be
indicative of the amounts the Company could realize in a current market
exchange.  At March 31, 2005 and 2004, the carrying amounts of accounts
receivable, accounts payable and accrued charges, and loans payable
approximate their fair values due to the short-term maturities of these
instruments.

   i)	Use of Estimates

The preparation of consolidated 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 at the date of the consolidated
financial statements and the reported amounts of revenues and expenses
during the reporting period.  Actual results may differ from those estimates.
j)	Income Taxes

The Company accounts for income taxes pursuant to SFAS No. 109,
"Accounting for Income Taxes". Deferred tax assets and liabilities are
recorded for differences between the financial statement and tax basis of the
assets and liabilities that will result in taxable or deductible amounts in the
future based on enacted tax laws and rates applicable to the periods in which
the differences are expected to affect taxable income. Valuation allowances
are established when necessary to reduce deferred tax assets to the amount
expected to be realized. Income tax expense is recorded for the amount of
income tax payable or refundable for the period increased or decreased by the
change in deferred tax assets and liabilities during the period.





COSMO COMMUNICATIONS CORPORATION
Notes to Financial Statements
March 31, 2005 and 2004

2.	Summary of Significant Accounting Policies (cont'd)
k)	Earnings Per Share

Basic earnings per share is computed based on the average number of
common shares outstanding and diluted earnings per share is computed based
on the average number of common and potential common shares outstanding.
As of each period ended there were no dilutive common equivalent shares.
The stock options discussed in Note 9 could potentially dilute earnings per
share in the future but were not included in diluted loss per share since they
would be anti-dilutive for the periods presented.

   l)	Stock-Based Compensation Plans

Stock-based compensation plans include all arrangements by which employees
and non-employee members of the Board of Directors receive shares of stock or
other equity instruments of the Company or the Company incurs liabilities to
employees in amounts based on the price of the Company's stock.  The
Company has chosen to continue to account for stock-based plans using
the intrinsic value method prescribed by Accounting Principles Board
Opinion ("APB") No.25, "Accounting for Stock issued to Employees" and
related interpretations. Accordingly, compensation cost of stock based
compensation is measured as the excess, if any, of the fair value of the
Company's stock at the date of the grant over the amount an employee
or non-employee member of the Board of Directors must pay for the stock.
The Company did not enter into any stock based compensation
arrangement in 2005 or 2004.Pro forma net earnings and earning
per share disclosure as if the Company recorded compensation expense based on
fair value for stock-based awards in accordance with the provisions of SFAS No.
148 "Accounting for stock-based Compensation  - Transition and Disclosure," are
not materially different.

m)	Comprehensive Income

The Company adopted SFAS No. 130, "Reporting Comprehensive Income." SFAS
No. 130 establishes standards for reporting and presentation of comprehensive
income and its components in a full set of financial statements.  Comprehensive
income is presented in the statements of changes in stockholders' equity, and
consists of net loss and unrealised gains (losses) on available for sale
marketable securities;  foreign currency translation adjustments and changes
in market value of future contracts that qualify as a hedge; and negative equity
adjustments recognized in accordance with SFAS 87.  SFAS No. 130 requires
only additional disclosures in the financial statements and does not affect the
Company's financial position or results of operations.

COSMO COMMUNICATIONS CORPORATION
Notes to Financial Statements
March 31, 2005 and 2004

3.	Accounts Receivable

The allowance for doubtful accounts for the year ended March 31, 2005 amounted
 to $57,610 (2004 - $41,895).

The Company carries accounts receivable at the amounts it deems to be
collectible.  Accordingly, the Company provides allowances for accounts
receivable it deems to be uncollectible based on management's best estimates.
Recoveries are recognised in the period they are received. The ultimate amount
of accounts receivable that become uncollectible could differ from those
estimated.

4.	Equipment
					2005			2004
					Accumulated		Accumulated
				Cost	Depreciation	Cost	Depreciation

Furniture and fixtures	$	42	$	36	$ 43	$          35
Office equipment		              32		26	   33	            25
Computer equipment		39		26	   31	            19
Leasehold improvements		13		13	   13	            13
Warehouse equipment		68		20	   70		7

			$           194	$	121	$ 190	 $	99

Net carrying amount	  		$	73		  $	91
5.	Accounts Payable to Parent Company
As of March 31, 2005, the Company owed approximately $4,445 (2004 - $5,753) to
the parent company ("Starlight"), the principal shareholders of the Company.
Of this amount $2,712 was owed in the form of trade payable (2004 - $4,228) and
the remainder was in the form of a loan (note 6).


COSMO COMMUNICATIONS CORPORATION
Notes to Financial Statements
March 31, 2005 and 2004
6.	Loan From Parent Company
The loan from Starlight bears interest at Hong Kong prime rate plus 1% and is
payable on demand.  Interest accrued as of March 31, 2005 was $455 (2004-
$363).

7.	Common Stock and Treasury Stock
	Authorized
	30,000	preferred shares, cumulative, convertible at $0.01
	 par value

	9,970,000	preferred shares, at $0.01 par value

	50,000,000	common shares at $0.05 par value, voting,
	participating

						      2005		2004
	Issued

	29,104,000	common shares		$   1,571    $	1,571
	2,314,567	treasury stock		    (116)		(116)

						$ 1,455	   $	1,455

8.	Related Party Transactions
Apart from those as disclosed in note 6, the Company's transactions with
related parties were, in the opinion of the directors, carried out on normal
commercial terms and in the ordinary course of the Company's business.
During the year ended March 31, 2005, the Company purchased $21,703
(2004 - $19,392) of goods from Starlight and received $344 (2004 - $243)
in commissions.

COSMO COMMUNICATIONS CORPORATION
Notes to Financial Statements
March 31, 2005 and 2004
9.	Stock Option Plan
The Board of Directors of the Company (the "Board") adopted the 1990 Stock
Option Plan (the "Plan) effective December 15, 1990.  Effective December 23,
1994, the 1990 Stock Option Plan was amended and restated.  The Plan
reserved 270,000 shares of common stock for issuance thereunder.  Under
the Plan, the Company may grant incentive stock options, nonqualified stock
options, and stock appreciation rights.  The purpose of the Plan is to further
the best interests of the Company and its subsidiaries by encouraging
employees and consultants of the Company and its subsidiaries to continue
association with the Company.  The employees eligible to participate in the
Plan as recipients of stock options or stock appreciation rights are such
officers and employees of the Company and such other key employees of
the Company and its subsidiaries, as the Board shall from time to time
determine, subject to the limitations of the Plan.

The Plan is administered by the Board or by a committee of the Board designated
 by the Board.  The Board, or such committee, determines, among other things,
which officers, employees and directors of the Company receive options or stock
appreciation rights under the Plan, the number of shares to be covered by the
options, and the date of grant of such options.

The options granted under the Plan terminate at the earlier of (i) a date set by
the Board at the time of grant, or (ii) ten years from their respective dates of
grant, except in the case of incentive stock options granted to a shareholder
owning ten percent (10%) or more of the Company's common stock, with
respect to whom options granted are exercisable over a period no longer than
five years.  The exercise price for stock options granted under the Plan is
determined by the Board and is required to be at least the par value per share
of the common stock, except in the case of incentive stock options
(which must have a price which is not less than market price of the shares
on the date of the options granted) to a shareholder owning ten percent
(10%) or more of the Company's common stock, with respect to whom
the exercise price is required to be at least one hundred ten percent
(110%) of such market price.  The exercise price must be paid in full by an
employee in cash, common stock of the Company or any other form of
payment permitted by the Board.

As of March 31, 2005 the Company terminated its stock option plan. Nil (2004 -
252,000) stock options were outstanding and nil (2004 - 230,000) were
exercisable. The exercise price of the stock options ranged from $.45 - $1.55
per option.

COSMO COMMUNICATIONS CORPORATION
Notes to Financial Statements
March 31, 2005 and 2004
10.	Income Taxes
Future income tax assets and liabilities are recognized on temporary differences
between the financial and tax bases of the equipment in note 4 as well as unused
tax loss carryforwards.  The provision for income taxes has been computed as
follows:
							2005		2004
Expected income tax recovery at the statutory rate
of 35.42% (2004 - 36.60%) in Canada, 17.5%
(2004 - 16%) in Hong Kong and 15.5%
(2004 - 20.5%) in USA				   $	220	   $	150

Tax effect of expenses that are not deductible
for income tax purposes (net of other amounts
deductible for tax purposes)					13		12

Tax effect of differences in the timing of deductibility
of items for income tax purposes:
Differences between depreciation and capital cost allowance	(3)		(30)

Recognition of non-capital tax losses				(104)		(100)

Unrealised exchange gains					11		(11)

							137		21

Utilization of non-capital tax losses to offset current
 taxable income						94	 	(63)

Non-capital tax losses available to offset future taxable
 income, as described below					10		13

Provision for income taxes				$	241	$	(29)


COSMO COMMUNICATIONS CORPORATION
Notes to Financial Statements
March 31, 2005 and 2004

10.	Income Taxes (cont'd)
							  2005		2004
The components of future income taxes are as follows:
Deferred income tax liabilities:
Deferred income tax assets:
Equipment					$	23	$	26

Non-capital tax loss carry-forward				-		100

Deferred income taxes				$	23	$	126

11.	Contingencies
The Company is not in compliance with the periodic reporting requirements
of the Securities Exchange Act of 1934.  Management is unable to
determine what effect, if any, this non-compliance will have on its
operations.

12.	 Economic Dependence

The Company is economically dependent upon its parent company for the
supply of inventory products to its customers. A Canadian mass-market
merchandiser and chain store is the Company's largest customer, which
accounted for approximately 90% of sales in 2005 and 90% in 2004.
Economic dependence exists with this identified customer.  Loss of the
customer may have significant adverse results to the financial position
of the Company.

As of March 31, 2005, the accounts receivable from this customer
amounted to approximately $239 (2004 - $95)


COSMO COMMUNICATIONS CORPORATION
Notes to Financial Statements
March 31, 2005 and 2004
13.	Operating Segment Information
	The Company operated in one business segment and all of its sales
are consumer electronic products
The Company's customers are principally in Canada.  Borrowings are principally
 in the United States.
The breakdown of relevant financial information is as follows:
					Domestic		Foreign	Other  Total

2005
Assets					$   13	      $	7,627	$   -     $ 7,640
Sales, net				      -	      	35,452	     -      35,452
Gross Margin		                                  -	  	  2,606	     -       2,606
Net income (loss)				  (69)		    694	     -	  625

2004
Assets					$  20	       $	7,652	$   -  	$  7,672
Sales, net				     -	            32,159	     -	  32,159

Gross Margin				     -		2,683	     -            2,683
Net income (loss)				 (65)	 	  784	     -               719

14.	Commitments
The Company leases premises under an operating lease with a five year term in
Canada and shares the facilities for its Hong Kong operation.  Minimum lease
commitments under these leases are as follows:
						2006		211
						2007		215
						2008		224
						2009		137
15.	Comparative Figures
Certain figures in the 2004 financial statements have been reclassified to
conform with the basis of presentation used in 2005.

??

??

??

??





COSMO COMMUNICATIONS CORPORATION
Notes to Financial Statements
March 31, 2005 and 2004
($ in 000's)
(except per share data)



COSMO COMMUNICATIONS CORPORATION
Notes to Financial Statements
March 31, 2005 and 2004
($ in 000's)
(except per share data)