To The Board of
The Elephant Reintroduction Foundation

I have audited the balance sheets of The Elephant Reintroduction Foundation, a non-profit organisation, as at 31
December 2010 and 2009, 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 2010 and 2009, and the results of its operations for the years then
ended in accordance with generally accepted accounting principles.

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 appropriateto a non-profit organisation.

Siraporn Ouaanunkun
Certified Public Accountant (Thailand) No. 3844

Ernst & Young Office Limited
Bangkok : 29 March 2011

	Note	2010	2009
ASSETS
CURRENT ASSETS
Cash and cash equivalents	6	12,795,448	19,547,209
Current investments	7	5,309,629	3,000,830
Elephants	8	30,730,485	28,450,485
Other current assets
Interest receivable		286,065	272,418
Others		307,712	323,237
TOTAL CURRENT ASSETS		49,429,339	51,594,179
NON-CURRENT ASSETS
Long-term investments	7	22,697,534	20,314,000
Equipment - net	9	2,048,342	2,745,141
Deposits		131,610	131,610
TOTAL NON-CURRENT ASSETS		24,877,486	23,190,751
TOTAL ASSETS		74,306,825	74,784,930
LIABILITIES AND ACCUMULATED FUNDS
CURRENT LIABILITIES
Accrued expenses		118,527	94,609
Contribution awaiting transfer to provident fund		1003	1,879
Others		43,381	25,299
TOTAL CURRENT LIABILITIES		162,911	121,787
NON CURRENT LIABILITIES
Retention payable		23,917	23,917
Total Non-current Liabilities		23,917	23,917
Total Liabilities		186,828	145,704
ACCUMULATED FUNDS
Initial capital funds	10	776,911	776,911
Balance of funds		73,343,086	73,862,315
TOTAL ACCUMULATED FUNDS		74,119,997	74,639,226
TOTAL LIABILITIES AND ACCUMULATED FUNDS		74,306,825	74,784,930

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

	Note	2010	2009
REVENUES
Donations	11	11,864,215	22,183,784
Interest income		1,290,662	1,247,446
Other income		140,874	25,057
TOTAL REVENUES		13,295,751	23,456,287
EXPENSES
Administrative expenses		11,384,980	11,022,060
Other expenses		2,430,000	11,794,703
TOTAL EXPENSES		13,814,980	22,816,763
SURPLUS OF REVENUES TO EXPENSES FOR THE YEAR		(519,229)	639,524

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

	Accumulated funds
	Initial capital funds	Balance of funds	Total
Balance as at 31 December 2008	776,911	73,222,791	73,999,702
Surplus of revenues to expenses for the year	-	639,524	639,524
Balance as at 31 December 2009	776,911	73,862,315	74,639,226
Balance as at 31 December 2009	776,911	73,862,315	74,639,226
Deficit of revenues to expenses for the year	-	(519,229)	(519,229)
Balance as at 31 December 2010	776,911	73,343,086	74,119,997

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 ,7 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

3.1 During the current year, the Federation of Accounting Professions ('FAP') issued a number of revised and new accounting standards (TAS, TFRS, TFRIC, SIC) as listed below.

a) Accounting standards that are effective for fiscal years beginning on or after 1 January 2011 (except Framework for Preparation and Presentation of Financial Statements, which is immediately effective)

Framework for Preparation and Presentation of Financial Statements (revised 2009)

b) Accounting standards that are effective for fiscal years beginning on or after 1 January 2013:

3.2 In addition, FAP is in the process of preparing a new set of accounting standards exclusively for non-publicly accountable entieies (NPAE). It is expected that these accounting standards will be announces in early 2011 and effective prospectively. However, NPAE may choose to maintain its books of account based on the existing accounting standards.

At present, the Foundation's management is in the process of deciding what set of accounting standards to apply.

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.
No depreciation is provided for equipment under installation.

4.6 Employee benefits
Salaries, wages and contributions to the social security fund and provident fund are recognised as expenses when incurred.

4.7 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 : Baht)
	2010	2009
Cash and Cash equivalents held by the Foundation
Cash	20,000	20,000
Bank deposits	6,5420,983	8,891,681
Cash and cash equivalents in the Foundation's private fund
Bank deposits	3,234,519	643,720
Government bonds	1,998,153	9,991,808
Bank of Thailand bonds	999,793	-
Total	12,795,448	19,547,209

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 2010, elephants under care of the Foundation are listed as follow :-

During the year 2010, movements of elephants under care of the Foundation were as follow:

9. EQUIPMENT

(Unit : Baht)
	Mobile office	Furniture and fixtures	Computer and equipment	Vihicle and equipment		Others	Total
Cost:
31 December 2009	554,650	5,361,518	674,531	4,371,063		1,452,638	12,414,400
Acquisition using cash from donation/Transfer in	-	117,439	13,735	-		738,250	869,424
Donated/Write off	-	-	-	(695,385)		(7,688)	(703,073)
31 December 2010	554,650	5,478,957	688,266	3,675,678		2,183,200	12,580,751
Accumulated depreciation :
31 December 2009	497,792	4,394,453	518,739	3,159,591		1,098,684	9,669,259
Depreciation charged for the year	36,280	717,709	90,683	581,441		136,639	1,562,752
Accumulted depreciation of donated equipment/Write off	-	-	-)	(695,384)		(4,218)	(699,602)
31 December 2010	534,072	5,112,162	609,422	3,045,648		1,231,105	10,532,409
Net book value :
31 December 2009	56,858	967,065	155,792	1,211,472		353,954	2,745,141
31 December 2010	20,578	366,795	78,844	630,030		952,095	2,048,342
Depreciation for the year included in administrative expenses:
2009	2,013,397
2010	1,562,752

As at 31 December 2010, certain equipment items have been fully depreciated but are still in use. The original cost of those assets amounted to approximately Baht 6.6 million.(2009: Baht 3.34 million).

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 2010 and 2009 as listed below :

12. EXPENSES BY NATURE

Significant expenses by nature are as follow:

13. PROVIDENT FUND
The Foundation and its employees have jointly established a provident fund in accordance with the Provident Fund Act B.E. 2530. The Foundation contributed to the fund monthly at the rate of 5 - 10 percent of basic salary and employees contributed to the fund monthly at the rate of 5 percent of basic salary. The fund, which is managed by TISCO Asset Management Company Limited, will be paid to employees upon termination of their membership of the fund, in accordance with the fund rules. During the year 2010, the Foundation contributed Baht427,114 (2009 : Baht379,307 ) to the fund.

14. 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 the agreements are generally 3 years.Operating lease agreements are non-cancellable.

As at 31 December 2010, future minimum lease payments required under these non-cancellable operating lease contracts were as follows:

15. APPROVAL OF FINANCIAL STATEMENTS
These financial statements were authorised for issue by the Foundation's Authorised Directors on 29 March 2011.