To The Board of
Elephant Reintroduction Foundation

I have audited the balance sheets of The Elephant Reintroduction Foundation, a non-profit organisation, as at 31
December 2008 and 2007, 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 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 2008 and 2007, 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 : 7 April 2009

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 (hereinafter refered to as "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 Hua Seng Heng2 Building, Soi Mangkorn, Yaowaraj Road, Sampantawong, Bangkok 10100.

At present, the Foundation has 3 offices as follow:-
- The Bangkok office located on 255-257 Hua Seng Heng2 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 The financial statements in Thai language are the official statutory financial statements of the Company. The financial
statements in English language have been translated from such financial statements in Thai language.

3. ADOPTION OF NEW ACCOUNTING STANDARDS

3.1 Accounting Standards which are effective for the year 2008
The Federation of Accounting Professions (FAP) has issued Notifications No. 9/2550, 38/2550 and 62/2550 mandating the use of new accounting standards as follws:

These accounting standards become effective for the financial statements for fiscal years beginning on or after1 January 2008. The management has assessed the effect of these standards and believes that TAS25, TAS 31, TAS 33, TAS 41, TAS 43, TAS49 and TAS 51 are not relevant to the business of the Foundation, while TAS 29, TAS 35 and TAS 39 donot have any significant impact on the financial statements for the current year.

3.2 Accounting Standards which are not effective for the year 2008
The Federation of Accounting Professions has also issued Notification No.86/2551 mandating the use of the following new
accounting standards:

These accounting standards will become effective for the financial statements for fiscal years beginning on or after 1 January 2009. The management has assessed the effect of these standards and believes that they will not have any significant impact on the financial statements for the year in which they are initially applied.

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, cash 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 represented at amortized 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 / 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
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. INVESTMENTS
As at 31 December 2008 and 2007, the balance of current investments and long-term investments consist of :-

These investments represent investment in private fund 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
At as 31 December 2008, elephants under care of the Foundation are listed as follow :-

During 2008, movements of elephants under care of the Foundation were as follow:

8. EQUIPMENT

(Unit : Baht)
	Mobile office	Furniture and fixtures	Computer and equipment	Vihicle and equipment	Equipment under installation	Others	Total
Cost:
31 December 2007	554,650	5,153,093	773,375	4,389,273	102,354	1,320,755	12,293,500
Acquisition using cash from donation/Transfer in	-	287,398	19,200	-	8,353,304	67,137	8,727,039
Donated/Write off	-	(75,665)	(72,060)	-	(102,354)	-	(250,079)
31 December 2008	554,650	5,364,826	720,515	4,389,273	8,353,304	1,387,892	20,770,460
Accumulated depreciation :
31 December 2007	303,134	2,531,731	438,967	1,777,410	-	609,345	5,660,587
Depreciation charged for the year	111,172	1,031,785	117,429	754,851	-	273,334	2,288,571
Accumulted depreciation of donated equipment/Write off	-	(48,293)	(63,155)	-	-	-	(111,448)
31 December 2008	414,306	3,515,223	493,241	-	-	882,679	7,837,710
Net book value :
31 December 2007	251,516	2,621,362	334,408	2,611,863	102,354	711,410	6,632,913
31 December 2008	140,344	1,849,603	227,274	1,857,012	8,353,304	505,213	12,932,750
Depreciation for the year
2007	2,280,255
2008	2,288,571

As at 31 December 2008, certain equipment items have been fully depreciated but are still in use. The original cost of those assets amounted to approximately Baht1.52 million.(2007: Baht 0.21 million)

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 2008 and 2007 as listed below :-

11. EXPENSES BY NATURE

Significant expenses by nature are as follow:

12. 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 2008, the Foundation contributed Baht 243,912 (2007 : Baht 86,887) to the fund.

13. COMMITMENTS AND CONTINGENT LIABILITIES

13.1 Capital Commitments
As at December 2008, the Foundation had capital commitments of approximately Baht 0.14 million, relating to the construction of electric fence.

13,2 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 2008, future minimum lease payments required under these non-cancellable operating lease contracts were as follows:

14. APPROVAL OF FINANCIAL STATEMENTS
These financial statements were authorised for issue by the Foundation's Authorised Directors on 7 April 2009.