15.09.2009

Politics & the Nation

• IB asks Government to block all net telephony services
• Read this news report. The Intelligence Bureau has reportedly asked the communication ministry to block all internet telephony (VoIP) services to and from the country until the Department of Telecom (DoT) puts in place a mechanism to track such calls.
• If DoT were to implement the IB directive, it will impact hundreds of thousands of consumers who use the internet to make extremely low cost calls to phones and free calls to computers across the globe.
• Over 130 million minutes of internet telephony calls were made in the January-March quarter 2009. 34 ISPs in India offer net telephony services in India legally.

Finance & Economy

• South Africa seeks dual listing for MTN
• South Africa is pressing the Indian government for an agreement on dual listed companies (DLC) before the expiry of the merger talks deadline between Bharti Airtel and MTN, even as it indicated support for the $23 billion deal aimed at creating one of the world’s top five mobile groups.
• Dual listing typically involves two companies agreeing to combine operations and cash flows and make similar dividend payments to shareholders in two countries while retaining separate identities. Dual listing of both MTN and Bharti shares on the stock exchanges of both countries would give shareholders in both companies voting rights in each other.
• But India’s laws do not permit such an arrangement and government officials say dual listing needs changes in a host of areas, notably listing norms, changes under FEMA Act and having a fully convertible currency.
• India’s central bank is concerned that dual listings could lead to the convertibility of the Indian rupee through the back door: dual listing, it is argued, will make it possible for resident Indians to take wealth out of the country by buying shares listed here in rupees and then finding a way to sell the shares overseas for US dollars.
• Bharti and MTN have been engaged in exclusive talks since May for a deal that will see the Indian company hold a 49% stake in MTN, which in turn will hold a 36% stake in India’s top mobile operator. The talks, which were restarted after being called off last year, have already been extended twice amid opposition from MTN shareholders holding out for sweetened terms.
• The issue of dual listing need not, however, affect the proposed transaction between Bharti and MTN, which in the first leg is just a share swap and cash deal. The two companies have indicated though that they want to move towards an eventual merger. A merger between Bharti and MTN will create a global telecom powerhouse with more than 200 million subscribers and with revenues over $20 billion.
• Take a look at this graphic for a quick recap of the issue.
• SCODA
• It is the acronym for the Sebi Committee on Disclosures and Accounting Standards.
• This panel has recommended rotation of audit partners, selection of chief financial officer by a company’s audit committee and standardisation of earnings disclosure, in an attempt to prevent another billion-dollar accounting scandal such as Satyam Computer.
• The committee has also proposed that companies publish their balance sheets half-yearly which show the assets and liabilities, against once a year now. This would help investors know the company’s solvency position, instead of just the profitability which comes out in quarterly results. The committee has invited comments and suggestions on these proposals before a final recommendation.
• The committee has also recommended streamlining the submission of financial results and reduce the period for their submission to the stock exchanges.
• The panel proposed that companies should be allowed to voluntarily adopt International Financial Reporting Standards as a possible first step towards phased implementation of the new accounting practice starting April, 2011.

Sport

• US Open results
• Men's Singles
• Juan Martin del Potro ended Roger Federer’s run of dominance at the U.S. Open on Monday, stunning the top-ranked Swiss great in five sets to win in his first Grand Slam final.
• The 20-year-old Argentine prevailed 3-6, 7-6 (5), 4-6, 7-6 (4), 6-2 to snap Federer’s streak of five straight U.S. Open titles. The sixth-seeded del Potro had not beaten Federer in their six previous encounters
• Women's Singles
• Kim Clijsters won the U.S. Open in just her third tournament back after 2-1/2 years of retirement and 18 months after the birth of her daughter.
• The unseeded, unranked Belgian beat No. 9 Caroline Wozniacki of Denmark 7-5, 6-3 on Sunday night to become the first mother to win a Grand Slam title since Australian Evonne Goolagong Cawley at Wimbledon in 1980. It’s Clijsters’ second major championship -- she also won at Flushing Meadows in 2005, her last appearance at the Open.
• Men's doubles
• Leander Paes won the battle of Indians as well as his 10th Grand Slam title after defeating old pal Mahesh Bhupathi and Mark Knowles in the US Open men’s doubles final along with his partner Lukas Dlouhy.
• Women's doubles
• The Williams sisters won the U.S. Open women’s doubles title with a 6-2, 6-2 win over defending champions Cara Black and Liezel Huber.
• It couldn’t have been more unlike the scene on Saturday night, when Williams got called for a foot fault that triggered her outburst at a line judge. That resulted in a point penalty on match point against Kim Clijsters, and an ugly departure from the singles semifinal.

Language Lessons

• irascible: Adjective
• Quickly aroused to anger; Characterized by anger
• eg: With the probable exception of cricket, team sports can often tend to the irascible.
• enfant terrible: Noun
• A person whose unconventional behaviour embarrasses others
• ineluctably: Adverb
• By necessity
• egalite or egality: Noun
• Social and political equality