To The Board of The Elephant Reintroduction Foundation

I have audited the accompanying statements of financial position of The Elephant Reintroduction Foundation which comprise the statement of financial position as at 31 December 2012, and the related statements of revenues and expenses and changes in fund balance for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statement

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Thai Financial Reporting Standards applicable to non-publicly accountable entities, and for such internal control as management determines is necessary to enable the preparation of finacail statements that are free from material misstatement, whether due to fraud of error

Auditor's Resposibility

My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with Thai Standards on Auditing. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risk of material misstatement of the financial statements, whether due to fraud of error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statement. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

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 2013, and its financial performance for the year then ended in accordance with Thai Financial Reporting Standards applicable to non-publicly accountable entities.

Other

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 :18 April 2013

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 have been prepared in accordance with financial reporting standard applicable to non-publicly accountable entities as issued by the Federation of Accounting Professions.
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. Significant accounting policies

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

3.2 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.

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

3.4 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 statement sheets when they have been missing for over 1 year or die.

3.5 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.

3.6 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.

4. 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.

5. Cash and Cash equivalents

(Unit :Thousand Baht)
	2013	2012
Cash and Cash equivalents held by the Foundation
Cash	10	10
Bank deposits	6,574	9,078
Cash and cash equivalents in the Foundation's private fund
Bank deposits	391	89
Total	6,975	9,352

6. 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.

7. ELEPHANTS
As at 31 December 2012 and 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:

8. EQUIPMENT

(Unit : Thousand Baht)
	Mobile office	Furniture and fixtures	Computer and equipment	Vihicle and equipment		Others	Total
Cost:
1January 2011	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	5341	495	3,691		2,100	12,181
Acquisition using cash from donation/Transfer in	-	92	-	-		5	97
Donated/Write off	-	(103)	(4)	-		(27)	(134)
31 December 2012	554	5,330	491	3,691		2,078	12,144
Accumulated depreciation :
1 January 2011	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	415	3,495		1,241	10,946
Depreciation charged for the year	9	124	30	183		211	557
Accumulted depreciation of donated equipment/Write off	-	(93)	(4)	-		(21)	(118)
31 December 2011	554	5,281	441	3,678		1,431	11,385
Net book value :
31 December 2011	-	91	80	196		859	1,235
31 December 2012	-	49	50	13		647	759
Depreciation for the year included in administrative expenses:
2011	950
2012	557

9. 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.

10. DONATIONS
The Foundation received the donations for the year ended 31 December 2012 and 2011 as listed below :

11. 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 2012, future minimum lease payments required under these non-cancellable operating leases contracts were as follows:

12. Approval of financial statements
This financial statements were authorised for issue by the Foundation's Authorised Directors on 18 April 2013.