The Story BehindParmalat'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

Principal Divisions

• Bakery

• Fresh Foods

• Milk

• Vegetables.

Business of Parmalat

Other Social investments undertaken where [ Losses Incurred]

• 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

The Founder of Parmalat

Calisto Tanzi

People involved in the Scam

• 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?

People who are under investigation

• 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

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

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?

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

• 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