The Story Behind Parmalat's Bankruptcy

Company History The 1960s: From Cold Cuts to Riches The 1970s and 1980s: Expanding in Italy and Abroad The 1990s and Beyond: Capturing the American Market and Others

The 1960s: From Cold Cuts to Riches

The 1970s and 1980s: Expanding in Italy and Abroad

The 1990s and Beyond: Capturing the American Market and Others

Principal Divisions Bakery Fresh Foods Milk Vegetables.

Bakery

Fresh Foods

Milk

Vegetables.

Business of Parmalat

Other Social investments undertaken where [ Losses Incurred] German Formula 1 Football Club

German Formula 1

Football Club

Parmalat across the world

List of countries across the Globe Italy Portugal Romania Russia Australia Botswana Canada Colombia Cuba Ecuador Brazil Chile China Dominican Republic Hungary Mexico Spain United States of America Uruguay

Italy

Portugal

Romania

Russia

Australia

Botswana

Canada

Colombia

Cuba

Ecuador

Brazil

Chile

China

Dominican Republic

Hungary

Mexico

Spain

United States of America

Uruguay

The Founder of Parmalat Calisto Tanzi

Calisto Tanzi

People involved in the Scam Former chief financial officers Luciano Del Soldato & Fausto Tonna

Former chief financial officers

Luciano Del Soldato &

Fausto Tonna

Arrest of Calisto Tanzi

The case of Parmalat Key Facts Why were Parmalat considered as responsible corporate citizens? How similar is the scandal to Enron ? Curiosity which prevailed at that time? What have been the impacts of Parmalat’s collapse?

Key Facts

Why were Parmalat considered as responsible corporate citizens?

How similar is the scandal to Enron ?

Curiosity which prevailed at that time?

What have been the impacts of Parmalat’s collapse?

People who are under investigation Parmalat board members Internal auditors Parmalat executives Deloitte & Touche Grant Thornton Bank of America Lawyer

Parmalat board members

Internal auditors

Parmalat executives

Deloitte & Touche

Grant Thornton

Bank of America

Lawyer

Prosecutors are also seeking indictments against Bank of America's Italian unit Deloitte & Touche Grant Thornton

Bank of America's Italian unit

Deloitte & Touche

Grant Thornton

From Countdown to meltdown 1961 -> 1963-> 1980-> 1990-> 1999-> 2003 : 11 Nov 15 Nov 8 Dec 15 Dec 16 Dec 17 Dec 24 Dec 27 Dec 29 Dec 30 Dec 31 Dec

1961 ->

1963->

1980->

1990->

1999->

2003 :

11 Nov

15 Nov

8 Dec

15 Dec

16 Dec

17 Dec

24 Dec

27 Dec

29 Dec

30 Dec

31 Dec

The Scandal Here's the skinny on Europe's enormous financial scandal What triggered the financial crisis? Why is the Parmalat scandal important? How did the company misplace $4.9 billion? Who is under investigation?

Here's the skinny on Europe's enormous financial scandal

What triggered the financial crisis?

Why is the Parmalat scandal important?

How did the company misplace $4.9 billion?

Who is under investigation?

Parmalat scam’s impact on EU Decision w.r.t companies: To Revise Company Law Directive on the Statutory Audit function. It will strengthen controls over the audit profession in the EU. Full group auditor responsibility for consolidated accounts of a group of companies. Obligatory independent audit committees for listed companies. Stricter auditor rotation requirements Strengthened sanctions

To Revise Company Law Directive on the Statutory Audit function.

It will strengthen controls over the audit profession in the EU.

Full group auditor responsibility for consolidated accounts of a group of companies.

Obligatory independent audit committees for listed companies.

Stricter auditor rotation requirements

Strengthened sanctions

What role did derivatives and other financial instruments play? Where did the missing billions go, and how did the fraud stay undetected for so long? Are European investors likely to be slammed by more Parmalat-style frauds? What happens now to Parmalat?

What role did derivatives and other financial instruments play?

Where did the missing billions go, and how did the fraud stay undetected for so long?

Are European investors likely to be slammed by more Parmalat-style frauds?

What happens now to Parmalat?

Presented By: Raghotham 06B123 Jeffrey Silvin 06B153 Naveen 06A023