(Amounts in thousands of Brazilian reais – R$, unless otherwise stated)


The consolidated financial statements include the account balances of the Company (parent company), its subsidiaries Servinet, Servrede and CBGS Ltda. (until October 31, 2009) and joint ventures CBGS (until November 30, 2009), Orizon, former Polimed, Dativa (until May 29, 2008), Prevsaúde and Precisa (starting February 28, 2009). In the preparation of these consolidated financial statements, intercompany balances and transactions have been eliminated.

The assets, liabilities, income and expenses of joint ventures CBGS (merged on November 30, 2009) Orizon, Dativa (merged on May 29, 2008), Prevsaúde and Precisa have been included proportionally to the Company's interest in their capital.

The translation into Brazilian reais of the financial statements of the Grand Cayman branch, originally prepared in U.S. dollars, was based on the exchange rates prevailing at the balance sheet dates.

4.1. Direct subsidiaries (individual control)

The interests held in the consolidated subsidiaries are as follows:

    Ownership interest – %
    Total capital Voting capital
    2009 2008 2009 2008
Direct subsidiaries:                
Servinet
 99.99 99.99 99.99 99.99
Servrede
 99.99 99.99 99.99 99.99
CBGS Ltda.
 - 99.99 - 99.99



4.2. Joint ventures (jointly-controlled entities)

Interests in joint ventures include the interests in CBGS, Orizon, formerly Polimed, Dativa (up to May 29, 2008), Prevsaúde and Precisa (starting February 28, 2009), as follows:

    Ownership interest – %
    Total capital Voting capital
    2009 2008 2009 2008
Joint ventures:                
CBGS
 40.95 40.95 40.95 40.95
Orizon
 40.95 40.95 40.95 40.95
Prevsaúde
 40.95 40.95 40.95 40.95
Precisa
 40.95 40.95 40.95 40.95



The condensed financial information of the joint ventures was consolidated under the proportionate consolidation method. All the balances of these subsidiaries' assets and liabilities are as follows:

    CBGS
    2009 2008
           
Assets:        
Current assets
 39,795 20,667
Noncurrent assets
 51,395 73,794
Total assets 91,190 94,461
       
Liabilities:        
Current liabilities
 12,221 6,404
Noncurrent liabilities
 3,585 5,414
Shareholders’ equity 75,384 82,643
Total liabilities and shareholders’ equity 91,190 94,461
       
Gross revenue 65,841 30,955
Gross profit 12,098 2,179
Operating expenses (32,474) (20,468)
Loss before taxes (32,474) (20,468)
Loss (34,403) (22,157)