To The Board of
The Elephant Reintroduction Foundation

I have audited the accompanying statements of financial position of The Elephant Reintroduction Foundation, a non-profit organisation, as at 31 December 2011 and 2010, the related statements of revenues and expenses, and changes in fund balance for the years then ended. These financial statements are the responsibility of the management of the Foundation as to their correctness and the completeness of the presentation. My responsibility is to express an opinion on these financial statements based on my audits.

I conducted my audits in accordance with generally accepted auditing standards. Those standards require that I 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 the management of the Foundation, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of The
Elephant Reintroduction Foundation as at 31 December 2011 and 2010, and the results of its operations for the years then
ended in accordance with generally accepted accounting principles applicable to non-publicly accountable entities.

Since The Elephant Reintroduction Foundation is a foundation which operates for the public benefit and not for profit, therefore changes have been made to the recognition of transactions and the reporting in the financial statements to make them appropriate to a non-profit organisation.

Siraporn Ouaanunkun
Certified Public Accountant (Thailand) No. 3844

Ernst & Young Office Limited
Bangkok :30 March 2012

The accompanying notes are an integral part of the financial statements.

The accompanying notes are an integral part of the financial statements.

The accompanying notes are an integral part of the financial statements.

1. General information
The Elephant Reintroduction Foundation ("the Foundation") was incorporated as a foundation under Thai laws on 9 August 2002. The main objectives of the Foundation are to return elephants to the wild in cooperation with other organisations to conserve Thai elephants, to act for the public benefit, to operate not for profit and to the exclusion of political action. Its registered address is 255-257 ,7th floor Hua Seng Heng Building, Soi Mangkorn, Yaowaraj Road, Sampantawong, Bangkok 10100.

At present, the Foundation has 3 offices as follow:-
- The Bangkok office located on 255-257,7th floor, Hua Seng Heng Building, Soi Mangkorn, Yaowaraj Road, Sampantawong, Bangkok 10100.
- The Chiangmai office located at room D 206, 2nd floor Faculty of Veterinary Medicine, Chiangmai University, Mae Hiae, Muang, Chiangmai 50100.
- The Lopburi office located at Sab Langka Wildlife Sanctuary Area, Gudtaphet Sub-District, Lam Sonthi District, Lopburi, 15190.

On 14 March 2003, the Ministry of Finance announced the Foundation had been listed as public charity organisation or institution No. 508 under Notification of the Ministry of Finance (No. 210).

2. Basis of preparation
The financial statements in Thai language are the official statutory financial statements of the Foundation. The financial
statements in English language have been translated from the Thai language financial statements.

3. Adoption of new accounting standards during the year

In May 2011, the Federation of Accounting Professions issued the financial reporting standard for non-publicly accountable entities ("TFRS for NPAEs"). The Foundation adopted this financial reporting standard during the current year.

4. Significant accounting policies

4.1 Accrual basis
The financial statements have been generally prepared on an accrual basis.

4.2 Cash and cash equivalents
Cash and cash equivalents consist of cash in hand, and at banks, and all highly liquid investments with an original maturity of three months or less and not subject to withdrawal restrictions.

4.3 Investments
Held to maturity debt investments are recorded at amortised cost.

4.4 Elephants
Elephants purchased using cash from donation are stated at cost.
Elephants acquired through donations are recorded at their fair value, which is evaluated by specialist of the Foundation. Elephants are written off from the Foundation's balance sheets when they have been missing for over 1 year or die.

4.5 Equipment and depreciation
Equipment is stated at cost less accumulated depreciation. Depreciation is calculated by reference to cost on the straight-line basis over the following estimated useful lives :-

Mobile Office	-	5	Years
Furniture and fixtures	-	5	Years
Computer and equipment	-	5	Years
Vehicle and equipment	-	5	Years
Other	-	5	Years

Depreciation is included in determining operating results.

4.6 Corporate income tax
Under the Revenue Code, the Foundation is a public charity organization or institution under Notification of the Ministry of Finance (No.210) which is exempted from corporate income tax.

5. USE OF ACCOUNTING ESTIMATES
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions in certain circumstances, affecting amounts reported in these financial statements and related notes. Actual results could differ from these estimates.

6. Cash and Cash equivalents

(Unit :Thousand Baht)
	2011	2010
Cash and Cash equivalents held by the Foundation
Cash	185	20
Bank deposits	9,078	6,543
Cash and cash equivalents in the Foundation's private fund
Bank deposits	89	3,234
Government bonds	-	1,998
Bank of Thailand bonds	-	1,000
Total	9,352	12,795

7. Invesment
As at 31 December 2010 and 2009, the balance of current investments and long-term investments consist of :-

This investments in private fund represents invesment made under the private fund management agreement date 20 January 2005, which the Foundation entered into with an asset management company, assigning the asset management company to manage the Foundation's private fund ("the Fund") for investment in debt instruments. The asset management company is to receive a management fee and a fund custody fee at a certain percentage rate per annum of the net asset value of the Fund as stipulated in the agreement.

8. ELEPHANTS
As at 31 December 2011, elephants under care of the Foundation are listed as follow :-

During the year 2011, movements of elephants under care of the Foundation were as follow:

9. EQUIPMENT

(Unit : Thousand Baht)
	Mobile office	Furniture and fixtures	Computer and equipment	Vihicle and equipment		Others	Total
Cost:
1January 2010	554	5,362	674	4,371		1,453	12,414
Acquisition using cash from donation/Transfer in	-	117	14	-		738	869
Donated/Write off	-	-	-	(695)		(8)	(703)
31 December 2010	554	5,479	688	3,676		2,183	12,580
Acquisition using cash from donation/Transfer in	-	59	69	20-		1	149
Donated/Write off		(197)	(262)	(5)		(84)	(548)
31 December 2011	554	5,341	495	3,691		2,100	12,181
Accumulated depreciation :
1 January 2010	498	4,394	518	3,160		1,099	9,669
Depreciation charged for the year	36	718	91	582		136	1,563
Accumulted depreciation of donated equipment/Write off	-	-	-	(696)		(4)	(700)
31 December 2010	534	5,112	609	3,046		1,231	10,532
Depreciation charged for the year	11	327	64	454		94	950
Accumulted depreciation of donated equipment/Write off	-	(189)-	(258)-	(5)		(84)	(536)
31 December 2011	545	5,250	145	3,495		1,241	10,946
Net book value :
31 December 2010	20	367	79	630		952	2,048
31 December 2011	9	91	80	196		859	1,235
Depreciation for the year included in administrative expenses:
2010	1,563
2011	950

10. INITIAL CAPITAL FUNDS
Initial capital funds consists of cash donations of approximately Baht 0.50 million and fixed assets of approximately Baht 0.27 million donated by WWF Thailand Programme office.

11. DONATIONS
The Foundation received the donations for the year ended 31 December 2011 and 2010 as listed below :

12. Operating lease commitments

The Foundation has entered into several lease agreements in respect of the lease and service of office building space. The terms of theagreements are generally 3 years. Operating lease agreements are non-cancellable. As at 31 December 2011, future minimum lease payments required under these non-cancellable operating leases contracts were as follows:

13. Approval of financial statements
This financial statements were authorised for issue by the Foundation's Authorised Directors on 30 March 2012.