Towards A Sustainable Future
#BusinessAsAForceForGood
Nestlé India Limited | Annual Report - 2021

The Board of Directors of
Nestlé India Limited
Ms. Roopa Kudva
Non Executive Director
Ms. Rama Bijapurkar
Non Executive Director
Mr. R. V. Kanoria
Non Executive Director
Mr. David S. McDaniel
Executive Director – Finance
& Control and CFO
Dr. Swati A. Piramal
Non Executive Director
Mr. Matthias C. Lohner
Executive Director - Technical
Mr. P. R. Ramesh
Non Executive Director
Mr. B. Murli
General Counsel and
Company Secretary
Mr. Suresh Narayanan
Chairman & Managing Director
#BusinessAsAForceForGood
Nestlé India Limited | Annual Report - 2021

Nestlé India Limited | Annual Report - 2021
01. Message to Shareholders
03. Environmental Sustainability
09. Societal Initiatives
14. Long Lasting Partnerships
17. Empowering and Engaging Our People
21. Corporate Information
22. 10 - Year Financial Highlights
23. Board’s Report
39. Auditor’s Report
47. Annual Accounts
94. Annexure 1: Report on Corporate Governance
109. Annexure 2: Annual Report on CSR Activities 
117. Annexure 3: Business Responsibility Report
127. Annexure 4: Secretarial Audit Report
130. Annexure 5: Report on Conservation of Energy etc.
133. Annexure 6: Information Regarding Employees and
 
 
 
Related Disclosures
Annexures to the Board’s Report
Annual Report
Content

Nestlé India Limited | Annual Report - 2021
1
In the last 24 months we are confronted with an 
unparalleled pace of change. The cascading impact of 
COVID-19 and its ramification on people, society and 
economy has left us all vulnerable. Despite the toughest of 
times, the resolve to shape a better and healthier world has 
only been strengthened with businesses leading from the 
front in overcoming challenges sprung forth by the 
pandemic. I am proud of the determination of my colleagues, 
our partners and stakeholders to face the context and 
continue to be inspired to grow. As we forge ahead, 
business continuity will remain rested on the evolving 
equations between People, Purpose, Partnerships, Planet 
and Performance.
Business is a force for good. This is the philosophy your 
Company has committed to while embarking on a journey 
towards a sustainable future focusing on environmental 
sustainability, good governance, people and societal 
initiatives.
 
Your Company, with a 109-year history of serving 
consumers in India, is proud to reach a milestone with its  
ninth factory or ‘Navaratna’ in Sanand, Gujarat. The factory 
is a tribute to the dedication, commitment, and tenacity of 
its colleagues and partners. It is the most ecologically and 
digitally advanced and aspires to be a paperless and state of 
the art environment friendly unit. Not just at the new 
factory, your Company further accelerated its sustainability 
spend by investing in various commitments across climate 
change, packaging, sourcing, and water.
Your Company is firmly and resolutely on a journey to 
unlock the potential of small towns through a customized 
portfolio, enhanced distribution infrastructure and 
deployment of resources, localized communication, 
enhanced visibility, and building consumer connect. Your 
Company’s continuous investment is a vindication of its 
confidence and trust in the Nestlé journey in India.
In moments of crisis, your Company’s strong values and 
purpose ensured that we heeded to a societal call of duty. 
Emboldened with a spirit of service and as a part of the 
support to the distressed sections of society, your Company 
Dear Shareholders,
Chairman’s Statement
Suresh Narayanan
Chairman & Managing Director
provided cooked meals, grocery kits, healthcare equipment, 
PPE,  masks, oximeters, face shields, gloves and sanitisers. 
Your Company also setup oxygen plants in select locations.
The Company's brands are known for their Purpose, and 
this was strengthened further with the Face of Hope 
Campaign and Mask Up pledge, reaching out to over 250 
million people to follow basic masking protocols amidst the 
pandemic.
 
Your Company continued to offer employment 
opportunities, developmental vistas for talent and has 
welcomed people through regular hiring, apprenticeship and 
internship. Your Company further intensified focus on 
well-being, increased mental health coverage for 
employees, provided vaccination support and stood by the 
families of colleagues who unfortunately succumbed to the 
pandemic.
Good governance and transparent relationships have been 
at the heart of your Company. Your Company has been 
focussed on the safety and wellness of people and partners 
in these challenging times. Your Company served 
employees, customers, communities, and the broader 
ecosystem through critical and strategic interventions, 
steered by the Company’s Code of Ethics. Your Company 
ensured that partners received their payments and no 
MSME or small supplier suffered. Your Company also 
stepped-up automation and digitalization across the supply 
chain.
The consumption story of India will be strengthened 
moving forward. Aspirations are rapidly converging 
between urban and rural India, leading to an uptick in the 
consumption of branded goods with high quality, safety, 
and nutrition credentials. Organizations that will act in the 
interest of their employees, stakeholders, and society at 
large will reinforce their expertise, leadership, trust and 
strengthen the bond they have with consumers.
Right from the start of Nestle’s journey, Founder Henri 
Nestlé set a milestone in contributing to a healthier future. 
Henri’s development of ‘Farine Lactee’ gave birth to 
Nestlé’s commitment to society. This commitment has 
been carried forward by your Company for over 150 years. 
Its purpose has been centered around “Unlocking the 
power of food to enhance quality of life for everyone, 
today and for generations to come”.
As we move into the second decade of the 21st century,
it is our hope that the culture, Purpose, Values and 
commitment enshrined in the searing legacy and deeds of 
Henri Nestlé gives us the inspiration and the hope to build
a sustainable future in India with passion and 
determination.

2
Environmental
Sustainability
Societal
Initiatives
Long Lasting
Partnerships
People
Initiatives
Towards A Sustainable Future
#BusinessAsAForceForGood

Environmental Sustainability
Climate | Packaging | Water | Responsible Sourcing
Environmental
Sustainability
Societal
Initiatives
People
Initiatives
Long Lasting
Partnerships
3

Climate Key Priorities: Manufacturing
4
Within Nestlé India factories, 
there are continuous efforts 
to improve operational 
efficiencies, minimizing 
consumption of natural 
resources and reducing 
water, energy and CO2 
emissions while maximizing
production volumes.
Reduced Waste Water Generation 
(for every ton of production)
-67%
2006
2021
Reduced Water Usage
(for every ton of production)
-52%
2006
2021
Reduced Energy Usage 
(for every ton of production)
-43%
2006
2021
Reduced Direct GHG Emissions
(for every ton of production)
-57%
2006
2021
Nestlé India Limited | Annual Report - 2021

A Focus on
Sustainable
Operations
2021
Initiated
Waterways
Lanes
2019
0
4
Delivery Vehicle
Payload Utilization
2019
90.3%
2021
92.5%
2019
5.90%
2021
9.01%
Increased Usage of Bigger
Sized Vehicles (in Shipments)
Increased Usage of Railways (in Cases)
2019
0.2%
2021
6.49%
Climate Key Priorities: Logistics
Nestlé India Limited | Annual Report - 2021
5

Climate Key Priorities: Fresh Milk Procurement
Key
Interventions
Proposed
Soil Testing, 
Tensiometer, Zero 
Tillage Machine
FEED
PRODUCTION
Yield Improvement, 
Mineral Mix, Silage, 
Green Fodder, Semen, 
Harvester, Fan, Foggers
ENTERIC
FERMENTATION
Moringa 
Plantation
CARBON    
SEQUESTRATION
Collaboration with 
knowledge Partners
ACADEMIC
PARTNERSHIP
Anaerobic Digester 
Manure Separator
MANURE
MANAGEMENT
Solar Energy,
Bio-Fuel
ENERGY &
PROCESSING
Nestlé India Limited | Annual Report - 2021
6

Environmental Sustainability: Packaging
Nestlé India Continues To
Be Plastic Neutral
Packaging and Plastic
Waste Management: The
Drivers For A Better World
Plastic Neutrality Across Brands
EPR of
23,600 MT
in 2021
Nestlé India Limited | Annual Report - 2021
7

Environmental Sustainability: Packaging
8
Annually Eliminating
30 Million Plastic
Straws Under Ready
to Drink Portfolio
Plastic Reduced in our
Packaging since 2018* 8.6%
Mono Material Packaging
100% Recyclable or 
Reusable Packaging
by 2025.
Our Commitment
Divert Waste from
Landﬁll
Mussoorie
Dalhousie
Waste Worker
Professionalization
Nainital
Mahabaleshwar
Enabling Digital
Monitoring
Ponda
Munnar
Hilldaari - Collaboration and Awareness 
Establishing Waste Management
Systems in Tourist Locations
Nestlé India Limited | Annual Report - 2021

Societal Initiatives
People
Initiatives
Long Lasting
Partnerships
Environmental
Sustainability
Societal
Initiatives
99

Nestlé India Limited | Annual Report - 2021
Aligned With
National Priorities
and SDGs*
Encouraging
Breastfeeding
Practices through
Community
Action
Over
8.4 Million
Beneficiaries (2.7 direct
and 5.7 indirect) across 
8 States/UTs
Focus on Impact rather than
just numbers*
Impact of
Key Societal
Initiatives
For 
Individuals 
and Families
Providing Relief/easing the suffering
of vulnerable communities
Societal Initiatives: Serving Society is our Focus 
10
*Picture taken pre-pandemic

Helping
Adolescents
Live Healthier
Over 445,000
Beneficiaries Across
23 States/UTs
Creating
Access to Clean
Drinking Water
Around 150,000
Beneficiaries
Project Serve
Safe Food
25,900 Street
Vendors across
19 States/UTs
Sanitation
Facilities for
Girl Students
Over 240,000
Beneficiaries
For Our
Communities
Societal Initiatives: Impact
11
Nestlé India Limited | Annual Report - 2021

Societal Initiatives: Impact
12
After Intervention
Classrooms
Before Intervention
1500 People in
Rohira Village
Around 1300 People in Phase - 2
adoption of villages - Gabanspur and Naharpur 
School Entrance
Water Chamber
Creating
Awareness
about Water
Conservation
Nearly 120,000
students
For the
Planet
Nestlé India Limited | Annual Report - 2021

Extending Support to
Communities During the Pandemic
Societal Initiatives
13
Nestlé India Limited | Annual Report - 2021
Reached out to
28 states/6 UTs
Oxygen Plants
near 5 factory
locations
Continue
to support
Communities:
Covid-19
Relief Efforts
Around 4.4
million cooked
meals and
124,500
grocery kits
provided
COVID-19
Relief Efforts:
Safeguarding
the well-being
of Communities

Long Lasting Partnerships
Environmental
Sustainability
Societal
Initiatives
Long Lasting
Partnerships
People
Initiatives
14

Nestlé India Limited | Annual Report - 2021
Our Suppliers, Our Extended Family
15
Starting Up
Liaising with
Authorities
for free movement
of milk tankers
Ramp Up
Ensuing Continuous & 
Safe supply of milk for 
our consumers 
Awareness to all Driver 
Partners Mask
Distribution to drivers
Supplier Safety
Safety Awareness for our
Farmers and Agent partners
Extending Financial
Support Early
Payments Freight 
Incentives given

Nestlé India Limited | Annual Report - 2021
Responsible Sourcing
16
Planet
Environmental
sustainability
of farms
People
Safe living &
working conditions
Worker conditions &
child work
Proﬁt
Resilient
Livelihoods (farm
profitability)
Spices: Chilli, Cumin, Coriander, Turmeric
Achieve 100%
sustainable cocoa
for confectionery
by 2025
Sustainable Cocoa
Achieve 100%
responsible
sourced coffee
by 2025
Sustainable Coffee
Achieve no
deforestation
(Palm oil)
by 2022
MAGGI Spice Plan:
The Sustainable
Sourcing Programme
Touching lives of over 1300
Farmers in 39 Villages across 7 States

Empowering and Engaging
Our People
Environmental
Sustainability
Societal
Initiatives
Long Lasting
Partnerships
People
Initiatives
17

18
Workplace Safety During Pandemic
People Initiatives
Temperature screening
Hand & Respiratory hygiene
Social distancing
Sanitation of premises
COVID – Medical/
ﬁnancial support
81% of employees
fully vaccinated
Increase focus on
physical and mental
well-being
60% employees
covered in Mental
Health awareness
sessions
Nestlé India Limited | Annual Report - 2021

Unleashing passion, competence, commitment
for performance and improving Gender Balance
Drive Nesternship + 
Enhance Diverse Hiring
Nesternship &
on-boarding: 1011 in 2021
Diverse Hiring: Over
43% of our new hires being
women in 2021
Inculcate Self Learning
NesVidya: Performance Support
solution for Field Force, enables
learning anywhere, anytime 
Henri Nestlé Scholarship:
Over 160 employees given scholarships
of INR 50,000 per person to pursue
course of choice
iLearn: Learning Management
System with over 1000+ courses 
People Initiatives
Nestlé India Limited | Annual Report - 2021
19
Growing percentage of
women recruited as trainees
2021
54%
Growing percentage of women
employees (white collar)
2021
24%

Our Commitment to ‘Make in India’ Continues
People Initiatives
Nestlé India Limited | Annual Report - 2021
20
Over
70% women
workforce at
the factory
Our 9th factory in
India at Sanand,
Gujarat
Part of
INR 26 Billion
investment
planned in
India over next
few years
Digitally the
most advanced
factory
State of the
Art factory
reinforcing our
sustainability journey

21
NESTLÉ INDIA LIMITED
Corporate Information
BOARD OF DIRECTORS
Suresh Narayanan	
-	
Chairman & Managing Director
(DIN:07246738)	
 
David S. McDaniel	
-	
Executive Director - Finance & Control and CFO
(DIN:08662504)	
Matthias C. Lohner	
-	
Executive Director - Technical
(DIN:08934420)	
P. R. Ramesh	 	
-	
Independent Non - Executive Director
(DIN:01915274)	
Rama Bijapurkar	
-	
Independent Non - Executive Director
(DIN:00001835)	
Rajya Vardhan Kanoria	
-	
Independent Non - Executive Director
(DIN:00003792)	
Roopa Kudva	 	
-	
Independent Non - Executive Director
(DIN:00001766)
Swati A. Piramal	
-	
Independent Non - Executive Director
(DIN:00067125)
BOARD COMMITTEES:
AUDIT COMMITTEE
P. R. Ramesh	 	
-	
Chairman
Rajya Vardhan Kanoria	
-	
Member
Roopa Kudva	 	
-	
Member
STAKEHOLDERS RELATIONSHIP COMMITTEE
Rama Bijapurkar	
-	
Chairperson
Rajya Vardhan Kanoria	
-	
Member
David S. McDaniel	
-	
Member
CORPORATE SOCIAL RESPONSIBILITY COMMITTEE
Swati A. Piramal	
-	
Chairperson
Suresh Narayanan	
-	
Member
Rama Bijapurkar	
-	
Member
David S. McDaniel	
-	
Member
NOMINATION AND REMUNERATION COMMITTEE
Rajya Vardhan Kanoria	
-	
Chairman
Roopa Kudva	 	
-	
Member
P. R. Ramesh	 	
-	
Member
RISK MANAGEMENT COMMITTEE
Suresh Narayanan	
-	
Chairman
David S. McDaniel	
-	
Member
Roopa Kudva	 	
-	
Member
P. R. Ramesh	 	
-	
Member
AUDITORS
B S R & Co. LLP,
Chartered Accountants,
Building No. 10, 8th Floor, Tower – B,
DLF Cyber City, Phase – II,
Gurugram – 122002, Haryana
BANKERS
Axis Bank Limited
Bank of America N.A.
Citibank N.A.
Deutsche Bank AG
HDFC Bank Limited
HSBC Limited
ICICI Bank Limited 
Punjab National Bank
State Bank of India
Standard Chartered Bank
Yes Bank Limited
WEBSITE
www.nestle.in
INVESTOR EMAIL ID
investor@in.nestle.com
MANAGEMENT COMMITTEE
Suresh Narayanan	
-	
Chairman & Managing Director
David S. McDaniel	
- 	
Finance & Control and CFO
Matthias C Lohner	
-	
Technical
Anurag Patnaik		
-	
Human Resources 
Ashish Pande	 	
-	
Supply Chain
B. Murli	
	
-	
Legal & Company Secretary
Chandan Mukherji	
-	
Consumer Insights, Communications
Krishna Guha Roy	
-	
ISIT/Nestlé Business Excellence
Mehernosh Malia	
-	
Dairy
Rajat Jain	
	
-	
Foods
Ravi Ramchandran	
-	
Sales
Rupali Rattan	 	
-	
Confectionery
Sanjay Khajuria	
-	
Corporate Affairs
Sunayan Mitra		
-	
Beverages
Sushrut Nallulwar	
-	
Nestlé Professional  
Vineet Singh	 	
-	
Nutrition
CORPORATE IDENTITY NUMBER
L15202DL1959PLC003786
REGISTERED OFFICE
100/ 101, World Trade Centre, Barakhamba Lane,
New Delhi - 110001
HEAD OFFICE
“Nestlé House” Jacaranda Marg, ‘M’ Block,
DLF City, Phase II, Gurugram - 122002 (Haryana)
BRANCH SALES OFFICES
-	
Chimes, Plot no. 142P, Sector 44, Gurugram - 122003 
-	
KRM Plaza, 1st Floor, North Tower No. 2, Harrington Road, Chetpet, 	
	
	
Chennai – 600031
-	
Tower “A”, 9th Floor, DLF IT Park, 08, Major Arterial Road,
	
Block – AF, New Town, Rajarhat, Kolkata - 700156
-	
1st Floor, ICC Chambers, Near Saki Vihar Telephone Exchange,
	
Saki Vihar Road, Powai, Mumbai - 400072 
FACTORIES
-	
Village Maulinguem (North), Bicholim Taluka -  403504 (Goa)
-	
Plot No. 294, 297, Usgao Industrial Area, Ponda - 403406 (Goa)
-	
Unit I & II - Patti Kalyana, Kiwana Road,  Samalkha - 132101 Dist. Panipat (Haryana)
-	
Industrial Area, Tahliwal, District – Una – 174301 (Himachal Pradesh)
-	
Industrial Area, Nanjangud - 571301 Mysore District (Karnataka)
-	
Ludhiana-Ferozepur Road, Near Kingwah Canal, Moga - 142001(Punjab)
-	
P.O. Cherambadi - 643205 Dist. Nilgiris (Tamil Nadu)
-	
Plot No. – 1A, Sector No. -1, Integrated Industrial Estate, SIDCUL,  	
	
	
Pantnagar- 263145, Dist. Udhamsingh Nagar (Uttarakhand)
-	
Plot No. SM - 38, Sanand II, GIDC Industrial Estate, Siyawada Chokadi, Near
 
GIDC Office, Tal: Sanand– 382170, Dist: Ahmedabad, (Gujarat)
REGISTRAR & TRANSFER AGENTS
M/s Alankit Assignments Limited
4E/2, Jhandewalan Extension, 
New Delhi, 110055
Tel No : 011-42541234, 23541234 
Fax No : 011-41540064
LISTING OF EQUITY SHARES (Listing Fees paid)
BSE Limited, Mumbai, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400001 
(Scrip Code: 500790)
63RD ANNUAL GENERAL MEETING
Tuesday, 12th April 2022 at 10.00 A.M. IST
AGM through Video Conferencing/ Other Audio Visual Means (VC/OAVM) Facility 
[Deemed Venue for meeting : Registered Office: 100/ 101, World Trade Centre, 
Barakhamba Lane, New Delhi 110001]
FINANCIAL YEAR
1st January to 31st December

22
Nestlé India Limited | Annual Report - 2021
` in Millions (except otherwise stated)
2021
2020
2019^
2018
2017
2016
2015*
2014
2013
2012
Results
Sales
 146,337 
 132,902 
 122,953 
 112,162 
 101,351 
 94,096 
 81,233 
 98,063 
 90,619 
 83,023 
Profit from Operations
 32,548 
 28,775 
 25,940 
 23,509 
 18,305 
 16,542 
 13,338 
 17,926 
 16,941 
 15,400 
as % of Sales
22.2
21.7
21.1
21.0
18.1
17.6
16.4
18.3
18.7
18.5
Profit after Tax
 21,449 
 20,824 
 19,684 
 16,069 
 12,252 
 10,014 
 5,633 
 11,847 
 11,171 
 10,679 
as % of Sales
14.7
15.7
16.0
14.3
12.1
10.6
6.9
12.1
12.3
12.9
Balance Sheet and 
Cash flow statement
Shareholders Fund
 20,845 
 20,193 
 19,189 
 36,737 
 34,206 
 32,823 
 28,178 
 28,372 
 23,687 
 17,984 
Return on Average Equity 
(%)
104.5
105.8
70.4
45.3
36.6
32.8
19.9
45.5
53.6
69.5
Operating Cash Flow
 22,714 
 24,545 
 22,953 
 20,525 
 18,178 
 14,659 
 10,981 
 16,440 
 17,964 
 16,934 
as % of Sales
15.5
18.5
18.7
18.3
17.9
15.6
13.5
16.8
19.8
20.4
Capital Expenditure
 7,308 
 4,741 
 1,522 
 1,628 
 1,959 
 1,133 
 1,493 
 4,044 
 3,282 
 9,744 
as % of Sales
5.0
3.6
1.2
1.5
1.9
1.2
1.8
4.1
3.6
11.7
Data per Share
Earnings per share (`)
 222.5 
 216.0 
 204.2 
 166.7 
 127.1 
 103.9 
 58.4 
 122.9 
 115.9 
 110.8 
Dividend per share (`)#
 200.0 
 200.0 
 342.0 
 115.0 
 86.0 
 63.0 
 48.5 
 63.0 
 48.5 
 48.5 
Market capitalisation, end 
December
 1,899,925 
 1,773,312 
1,425,983 
 1,070,913 
 756,381 
 581,367 
 561,535 
 615,113 
 510,738 
 481,153 
Number of employees
 7,910 
 7,747 
 7,649 
 7,604 
 7,527 
 7,588 
 7,495 
 7,228 
 7,159 
 7,008 
Figures from 2016 onwards are as per Ind AS. Effective 1st July 2017, Sales are not comparable due to change in structure of Indirect taxes.
*Impacted by MAGGI Noodles issue.
#In 2019, special interim dividend of ` 180 per share paid out of accumulated profits of previous years.
^Figures have been reinstated in accordance with implementation of Ind AS 116 Leases.
Key Financial Ratios
As per the provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the key financial ratios are given below:
Particulars
                2020
                2021
Operating Profit Margin (%)  (Profit From Operations / Sale of Products)
21.7
22.2
Net Profit Margin (%) (Profit After Tax / Sale of Products)
15.7
14.7
Return on Net Worth (%)  (Profit After Tax / Average Equity)
105.8
104.5
Current Ratio  (Current Assets / Current liabilities)
1.7
1.6
Inventory Turnover Ratio  (Sale of Products / Average Inventories)
9.8
9.8
Debtors Turnover Ratio (Sale of Products / Average Trade Receivables)
91.9
88.6
*Figures have been reinstated in accordance with implementation of Ind AS 116 Leases
Notes:
1.  Interest Coverage Ratio and Debt Equity Ratio are not relevant for the company as it has negligible debt.
10 - Year Financial Highlights

23
NESTLÉ INDIA LIMITED
Board’s Report - 2021
Dear Members,
Your Directors are pleased to present their report and 
financial statements for the year ended 31st December 2021.
Financial Results and State of 
Company’s Affairs
 
(` in Million)
Particulars
2021
2020
Sale of products
146,337.2
 132,901.6 
Add : Other operating revenues
756.9
 598.7 
Add : Other Income
1,201.1
 1,458.5 
Total Income
148,295.2
 134,958.8 
Less : Total Expense
117,092.5
 106,830.9 
Profit before exceptional items and tax
31,202.7
 28,127.9 
Exceptional items
2,365.0
-
Profit before tax
28,837.7
28,127.9
Tax expense
7,389.1
7,303.6
Profit after tax
21,448.6
 20,824.3 
Add : Other Comprehensive Income
(1,514.1)
 (922.1)
Total Comprehensive Income
19,934.5
 19,902.2 
Opening balance in Retained Earnings
11,175.2
10,173.7 
Amount available for appropriation
31,108.2
   30,072.7 
Interim dividends paid during 
2021: ` 135.00 per share 
2020: ` 135.00 per share
 
13,016.1 
-
 
- 
13,016.1
Final dividends paid during 
2021: ` 65.00 per share 
2020: ` 61.00 per share
 
6,267.0 
-
 
- 
5,881.4
Closing balance in Retained Earnings
11,825.1
11,175.2
Key ratios:
Earnings per share (`)
222.5
216.0
Dividend per share (`) 
Interim Dividends 
Proposed - Final Dividend
 
135.00 
65.00
 
135 
65.00
Additional Information: 
Profit from operations
 
32,547.5
 
28,775.4
EARNINGS
# Includes special interim dividend of `180 per share paid in 2019 out of 
   accumulated profits of previous years
*Figures have been reinstated in accordance with implementation of Ind AS 116 
  Leases.
^Comparable Profit After Tax without the impact of Exceptional Item (Transition 
  cost of Pension Plan)
Profit
after Tax
 Earnings
 per Share
 Dividend
 per Share
340
320
300
280
260
240
220
200
180
160
140
120
100
80
60
40
20
0
360
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
22,000
24,000
2017
2018
2019*#
2020
2021^
Total Sales and Domestic Sales for the year increased by 
10.1% and 10.7% respectively. Domestic Sales growth is 
largely driven by volume and mix and is broad based. Export 
Sales were lower by 1.2% mainly due to lower coffee exports 
and change in product mix. 
Other Income decreased due to lower average liquidities 
following transition to “Future Ready Plan” as explained 
below, partly offset by higher yields.
Your Company has created a contingency provision of  
` 905.8 million (previous year ` 1,088.9 million) for various 
contingencies resulting mainly from matters, which are 
under litigation / related to disputes and other uncertainties 
requiring management judgement. Your Company has also 
reversed, utilized / settled contingency provision of ` 749.8 
million (previous year ` 580.2 million) due to the settlement 
of certain litigations and settlement of obligations for which 
provision is no longer required. 
Exceptional item comprises the aggregate of past service 
cost, settlement cost and incidental expenses incurred for the 
implementation of the ‘Future Ready Plan’ effective 1st December 
2021, for certain category of employees. ‘Future Ready Plan’ 
is a combination of amended Defined Benefit Pension Scheme 
for past period of service and a Defined Contribution Scheme 
for future service. For details please refer Note No. 3 of the 
Financial Statement attached.
SALES
Sales from 2017 onwards are impacted due to implementation of Goods 
and Service tax
150,000
125,000
175,000
0
25,000
2017
2018
2019
2020
2021
50,000
75,000
100,000

24
Nestlé India Limited | Annual Report - 2021
Dividends 
The Board of Directors have recommended a final dividend 
of ` 65/- per equity share amounting to ` 6,267.0 million 
for the year 2021 for approval of the members at the 63rd 
Annual General Meeting of the Company (“63rd AGM”). 
The total dividend for 2021 aggregates to ` 200/- per 
equity share which includes interim dividend of ` 25/- and  
` 110/- per equity share paid on 19th May 2021 and 
16th November 2021, respectively.
The dividend recommendation is in accordance with the 
Dividend Distribution Policy (“Policy”) of the Company. 
The Policy is available on the website of the Company at  
https://www.nestle.in/investors/policies. 
 
Material changes affecting the Company 
There have been no material changes and commitments 
affecting the financial position of the Company between the 
end of the financial year and date of this report. There has 
been no change in the nature of business of the Company. 
 
Amount Transfer to Reserves
Your Directors do not propose to transfer any amount to the 
reserves. 
SHAREHOLDERS FUNDS
# Reserves & Surplus impacted by payment of Special interim dividend of `180 per 
share in 2019 out of accumulated profits of previous years
*Figures have been reinstated in accordance with implementation of Ind AS 116 
Leases.
0
15
30
45
60
75
90
105
120
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
Return on Average  Equity (% )
2017
2018
2019*#
2020
2021
Share Capital
Reserve & Surplus
Return on Average Equity (%)
MARKET CAPITALSATION
Market Capitalisation is based on year end closing share price quoted on the Bombay 
Stock Exchange.
Market Capitalsation (in Billion)
2017
2018
2019
2020
2021
100
0
200
300
400
500
0
100
200
300
400
500
600
700
800
900
1,000
1,100
1,200
1,300
1,400
1,500
1,600
1,700
1,800
1,900
2,000
 
Per Share  (Face Value -  10)
EMPLOYEE  BASE
Ratios in terms of sales from 2017 onwards are impacted due to implementation of 
Goods and Service tax
Net Sales per Employee
No. of Employees
0
4
8
12
16
20
0
2000
4000
6000
8000
Number of Employees
Sales per Employee
2017
2018
2019*#
2020
2021
SOURCES AND UTILISATION OF CASH
1:99
Debt: Equity
1:99
3:97
2:98
1:99
2017
2018
2019
2020
2021^
Operating Cash Flow
Investment in Insurance Plan (Reimbursement Rights) 
Comparable Op. Cash Flow as a % of Sales
Capatil Expenditure
Divident and Tax thereon
Op. Cash Flow as a % of Sales
Ratios in % of sales from 2017 onwards are impacted due to implementation of 
Goods and Service tax
# Includes special interim dividend of `180 per share paid in 2019 out of accumulated 
profits of previous years
*Figures have been reinstated in accordance with implementation of Ind AS 116 Leases.
^Comparable Operating Cash Flows as a % of Sales without the impact of 
Exceptional Item (Transition cost of Pension Plan)
0
4
8
12
16
20
0
4,000
8,000
12,000
16,000
20,000
24,000
28,000
32,000
36,000
40,000
Operating Cash Flows as a % of  Sales 
in  Million) 
FIXED ASSETS
Fixed Assets includes Property, Plant and Equipments and Capital work-in-progress.
Ratios in terms of sales from 2017 onwards are impacted due to implementation of 
Goods and Service tax 
*Figures have been reinstated in accordance with implementation of Ind AS 116 Leases.
2017
2018
2019*
2020
2021
0
1
2
3
4
5
6
0
10,000
20,000
30,000
40,000
Net Fixed Asset Turns (Times)
in  Million)

25
NESTLÉ INDIA LIMITED
Exports
During 2021 exports of your Company remained stable with 
an overall drop of 1.2% mainly due to lower coffee exports 
and change in product mix. 
MAGGI Noodles and Sauces witnessed growth in UK, Canada, 
Australia and New Zealand, while EVERYDAY in Nepal and 
Bhutan faced a challenging year as a result of supply chain 
disruptions because of COVID-19.
Strengthening the confectionery export portfolio with the 
launch of POLO in the Middle East helped to establish your 
Company as a key exporter in the category. Your Company 
expanded  Crunch Wafers in ASEAN markets, such as 
Indonesia and Philippines.
Your Company’s continuous focus on the development 
of new markets such as Indonesia and Mauritius, channel 
expansion with the mainstream thrust in Australia and New 
Zealand and launch of range extensions like MAGGI Sauces 
to Oceania facilitated growth for MAGGI Noodles and 
Sauces and KITKAT. 
Your Company continues to explore new markets for 
categories such as prepared dishes and cooking aids, 
chocolates and confectionery in the Middle East.
 
Contribution to the Exchequer
Your Company over the years has been enabling significant 
contribution to various taxes. During the year 2021, the 
Company through its business, enabled tax collections at 
Central and State level close to ` 38.1 billion, in aggregate.
 
Business Development
As the pandemic raged on, your Company was determined 
to keep strong as it stood the test of resilience. It delivered 
double-digit growth pivoted on volume and mix performance 
despite a challenging and highly volatile economic 
environment. To better penetrate the market, your Company 
through the granular cluster-based approach, powered by 
data and technology, deepened its engagement into newer 
towns and villages. Your Company progressed firmly and 
resolutely on its RURBAN journey that was accelerated further 
by using a healthy mix of customized portfolio and building 
deep consumer connect. Your Company delivered strong 
rural growth performance in addition to sustained growth in 
smaller town classes and urban agglomerates.
E-commerce showed strong acceleration. Growth was fueled 
by new emerging formats such as quick commerce and click 
and mortar, leading to lower delivery times and improved 
shopper experience. Organized trade witnessed resurgence 
and good revenue growth, despite the second wave of the 
pandemic.  
Your Company  continued to leverage the strength of its 
portfolio and aligned its products with the ‘new normal’. Its 
brands have  further strengthened their equity and forged 
ahead. 
Strengthening its commitment to ‘Make in India’ through 
augmentation of manufacturing facilities, your Company’s 
new state-of-the-art manufacturing factory in Sanand in 
Gujarat for the MAGGI portfolio, became fully operational in 
2021. Your Company also commissioned a new KITKAT line 
in its Ponda factory in Goa in 2021. 
Innovation continues to be an engine of growth
Innovation and Renovation pipeline of products continues to be 
a thrust area, across categories such as Prepared Dishes and 
Cooking Aids, Chocolates and Confectionery, Milk Products 
and Nutrition. Your Company has launched more than 90 
products since 2016 and another 20 projects are in the pipeline. 
Transforming with digital analytics
Digitalization is a growth accelerator for your Company 
and will continue to be so in the future. Leveraging the 
power of data and analytics is your Company business 
strategy. It has a multi-intelligent data analytics system 
that sources internal and external data to converge 
insights that triggers swift and decisive business actions. 
Diverse and inclusive workforce with respect at
the core
Diversity is an integral part of Nestlé India, where confluence 
of new ideas and thoughts, diverse skills and experiences fuels 
innovation and growth. Your Company has a multigenerational 
workforce, where 72% are millennials. 
Equal opportunity, respect and dignity are anchored on 
the pillars of ‘Purpose and Values’ of Nestlé India. Women 
comprised 43% of its new hires in 2021. In the Sanand 
factory in Gujarat 70% of the workforce are women. 
 
ENABLED CONTRIBUTION TO EXCHEQUER
Ratios from 2017 onwards are impacted due to implementation of Goods and 
Service tax
Contribution as % of Sales
Contribution
2017
2018
2019
2020
2021
0
5
10
15
20
25
30
0
5000
10000
15000
20000
25000
30000
35000
40000
% of Sales 
 in  Million)

26
Nestlé India Limited | Annual Report - 2021
Sustainability initiatives at the core of ‘Business 
a force for good’
Your Company is committed to environmentally sustainable 
business practices across its value chain making the right 
choices to protect the future by integrating environmental 
considerations into its business planning. Preserving the 
planet is weaved into the Purpose of your Company - “We 
unlock the power of food to enhance quality of life for 
everyone, today and for generations to come”.
Your Company has accelerated the sustainability journey by 
working across 4 commitments related to climate, packaging, 
sourcing and water. Its efforts encompass the entire value 
chain, where it actively engages with farmers, suppliers, 
employees and consumers to increase awareness about the 
planet.
Through the NESCAFÉ Plan, MAGGI Spice Plan and partnering 
with the dairy farmers, your Company collaborates with the 
farmers on environmental sustainability programmes.
All your Company’s brands continue to be plastic neutral, 
which means the quantum of plastic that is being used in the 
packaging is compensated by what is collected and managed. 
Amidst critical times like the pandemic, your Company’s 
strong values and purpose ensured that it never lost sight 
of the well-being of the society and continued walking 
the path of being a ‘Force for Good. Programmes such 
as Project Vriddhi, Project Jagriti, Nestlé Healthy Kids 
Programme, creating access to clean drinking water and 
providing sanitation facilities to girl students are important 
steps that your Company continues to take every year. 
Prepared Dishes and Cooking Aids Portfolio
The Prepared Dishes and Cooking Aids business offers 
convenience, taste, and quality to consumers. It strengthened 
its place as an ally to consumers by bringing in a dash of 
excitement to everyday cooking. In 2021, the continuing 
momentum and improved availability helped MAGGI Noodles 
and MAGGI Masala-ae-Magic achieve double digit growth, 
while MAGGI Sauces continued to grow profitably by focusing 
on premiumisation.
MAGGI Tomato Ketchup was ranked No. 1 by ‘Consumer 
Voice’ (A Government of India Supported Initiative) once 
again establishing consumer trust in the sauce segment. 
Pioneering innovation that caters to diverse consumer 
choices and distinctive local taste, your Company 
launched MAGGI Veggie Masala Noodles with the 
goodness of vegetables in the iconic masala taste.
In a zeal to bring in new products, your Company 
launched MAGGI Special Chicken65 Masala 
Noodles, a variant inspired by one of the most 
popular chicken delicacies of regional cuisine. Packed with 
robust flavors and masalas, MAGGI Special Chicken65 Masala 
Noodles has been carefully crafted by culinary experts, using 
the choicest selection of 19 herbs and spices from across 
India. 
With an increase in snacking among consumers, your 
Company launched two new variants of MAGGI Hot n Sweet 
Sauce – ‘Sriracha’ and ‘Extra Hot’.
MAGGI Masala-ae-Magic expanded 
its presence in South India with 
the launch of a new variant MAGGI 
Masala-vin-Magic, a unique spice mix 
tailormade for South Indian cuisine 
that elevates taste, aroma and flavor 
of everyday meals. 
Your Company strengthened consumer trust with an anti-
counterfeit campaign in 2021, creating awareness amongst 
consumers to stay vigilant and purchase the authentic MAGGI 
noodles packed with the goodness of iron. 
Your Company also launched the QR Code Anti-Counterfeit 
Solution, which enables consumers, retailers and authorities 
to assess the authenticity of MAGGI Masala-ae-Magic within 
a minute.
Your Company concluded ‘MAGGI Desh ke Liye 2 Minute 
- Apna Food Business’ initiative, which received 10,000 
entries, where winners were supported with funds, equipment 
and training to start their own food business.
With the surge in consumers searching 
how-to-cook 
everyday 
meals, 
MAGGI’s 
website 
carrying 
recipes 
attracted 
1.5 million users. The brand forged strong 
partnerships with top home chefs to help 
consumers simplify everyday cooking and became their ally 
in the kitchen. 
Accelerating its commitment to sustainability, your Company, 
through the MAGGI Spice Plan that sources seven spices from 
39 villages of India, continued to partner with farmers and 
suppliers, adopted sustainable agricultural practices focusing 
on soil health, water usage and biodiversity enhancement. 
At the same time, your Company stayed committed to 
resilient livelihood and farm profitability.
Strengthening Breakfast Cereals
Your Company launched Nestlé GOLD Corn and Oat flakes 
which is a differentiated proposition in 
the cereals category. Nestlé GOLD Corn 
and Oat flakes is fortified with immuno-
nutrients such as zinc, iron and selenium. 
KOKO KRUNCH was renovated with 
improved taste and increase in whole 
grains.
Your Company also launched KOKO 
KRUNCH Kookie cereal further strengthening the kids cereal

27
NESTLÉ INDIA LIMITED
Company continued to accelerate growth through a multi-
channel engagement, building its presence in nutritional 
science through products such as RESOURCE HIGH 
PROTEIN, RESOURCE DIABETIC and OPTIFAST.  In order to 
meet consumer needs, your Company renovated RESOURCE 
HIGH PROTEIN with immunonutrients. Your 
Company’s Medical Nutrition portfolio witnessed 
robust performance, with its flagship product 
PEPTAMEN for patients in critical care.
 
Coffee and Beverages Portfolio
Your Company continued to focus on growing the Coffee and 
Beverages business by remaining consistent on the successful 
strategy of building coffee consumption habit through the 
year. NESCAFÉ registered yet another year of double-digit 
volume-led growth, based on significant growth 
in household penetration and increase in market 
share. 
Your Company continued its thrust on innovation 
while addressing the different needs of 
consumers with the launch of NESCAFÉ ALL in 
1 – a convenient coffee premix affordably priced at ` 10 and 
NESCAFÉ Black Roast – an intense cup for strong coffee 
lovers. 
Your Company accelerated its premiumization journey, 
delivering coffee at its best with NESCAFÉ Gold. With 
innovative product and packaging solutions, NESCAFÉ Gold 
continued in its journey to delight consumers with a café like 
experience at home, resulting in strong brand growth.
Your Company moved ahead in its journey of driving a 
differentiated brand in the southern part of India with the 
launch of a renovated recipe for NESCAFÉ SUNRISE offering 
superior taste and aroma, in its distinct granulated format. 
Your Company also expanded its portfolio with launch of 
NESCAFÉ SUNRISE Liquid Decoction which is a ‘ready-to-
use’ coffee decoction for consumers desiring a filter coffee 
experience.
Along with brand building initiatives, your Company distributed 
coffee to the frontline COVID warriors and extended support 
during the testing times.
Your Company continued to remain committed to respecting 
the environment and supporting the coffee farmers with its 
sustainability initiatives. Through the NESCAFÉ Plan, your 
Company trained and supported coffee farmers to adopt 
agricultural practices that improve farm yield and farmer’s 
income.
portfolio. KOKO KRUNCH Kookie cereal has 
choco chips embedded in the cereal and tastes 
like a cookie. 
E-commerce grew with speed and delivered 
growth for your Company’s breakfast cereals 
business. Single serve SKUs drove penetration 
among consumers. 
 
Milk Products and Nutrition Portfolio
The Milk Product and Nutrition business continued to 
deliver good performance despite challenges linked to 
commodity prices, that were mitigated by cost optimisation 
and efficiencies across the value chain. Your Company 
displayed resilience as it navigated through the second wave 
of COVID-19. E-commerce contributed towards driving the 
performance of Milk Products and Nutrition category. Your 
Company leveraged its in-depth knowledge of nutrition and 
quality as it continued to adapt to the new normal.
With consumers spending more time at home adopting 
creative pursuits such as baking and experimenting with 
new recipes, MILKMAID increased its engagement through 
its digital platform ‘milkmaid.in’ by providing dessert recipe 
solutions for baking enthusiasts. Over 300,000 consumers 
visited the website every month, which increased in-home 
usage of MILKMAID and fueled growth.
Your 
Company’s 
Ready-to-Drink 
beverage 
portfolio of NESCAFÉ and MILO saw accelerated 
growth as a result of increase in home 
consumption that was supported by an increase 
in distribution that mitigated the impact of 
declining out-of-home consumption.
Sustainability is embedded in the way your Company does 
business. Nestlé MILO and Royal Challengers Bangalore joined 
hands during the Indian Premier League season to 
bat for the planet, with the launch of paper straws 
for the MILO beverage packs. Your Company 
responsibly sourced paper straws from renewable 
sources and certified by the Forest Stewardship 
Council (FSC). This transition into paper straws has 
also been made for NESCAFÉ.
Your Company believes that breastmilk provides the best 
nutrition for babies, and every child should be exclusively 
breastfed for six months, followed by introduction of 
age-appropriate complementary feeding and continued 
breastfeeding until two years and beyond. Your Company’s 
nutrition business is committed to providing high quality, 
innovative, science-based nutrition. Your Company continued 
to focus on scientifically upgrading its portfolio while 
expanding the reach of the Toddler range of products. 
Your Company’s Healthcare Nutrition Business, Nestlé 
Health Science, has a portfolio of science based medical 
and consumer healthcare nutrition products. In 2021, your

28
Nestlé India Limited | Annual Report - 2021
Chocolates and Confectionery Portfolio
Despite a challenging year, your Company’s Chocolates and 
Confectionery portfolio continued its strong performance with 
healthy growth and market share gains. Your Company also 
commissioned a new KITKAT line in its Ponda factory in Goa 
in 2021.
In times when consumers are looking for “good for me” 
ingredients in their food, your Company 
launched Nestlé MUNCH FRUIT O NUTS, 
a unique combination of flavor and 
texture, where crunchy almonds combined with the fruity 
taste of pomegranate are wrapped around a crunchy wafer 
center. MUNCH FRUIT O NUTS is a category first innovation, 
leveraging your Company’s strong R&D capabilities and 
extensive consumer research insights on the taste preferences 
of India that is diverse.
Through MUNCH and its full pack range, your Company 
continued to grow its footprint in rural India by associating 
with festivals of India, that was further augmented through 
its association with Disney Marvel, that is popular in towns 
across the country. 
In order to meet the needs of the consumers, your Company 
launched a limited edition of KITKAT Kookie & Crème flavor, 
across all channels. KITKAT Kookie & Crème flavor is a fusion 
of the familiar taste of KITKAT with Cookie & Crème flavour.
 
Nestlé Professional - Out-of-Home Business 
Your Company’s Out-Of-Home (OOH) business is on a 
recovery path with gradual opening of hotels, restaurants, 
offices and malls. There are signs of a return to pre-
pandemic levels of business in some geographies such as 
Tier 1 and Tier 2 towns.
In 2021, there was significant portfolio expansion with 
product launches across Prepared Dishes and Cooking Aids 
and Coffee and Beverages portfolio that supported the OOH 
business to be future ready. Launch of NESCAFÉ Roasted 
Whole Beans, NESCAFÉ Sunrise Strong and Seasonings from 
MAGGI for OOH, are noteworthy innovations.  
In 2021, your Company continued to focus on premiumizing 
the beverage portfolio, through the scale up of NESCAFÉ 
Roasted Whole Bean coffee and bean-to-cup solution. The 
coffee solution displayed strong customer acceptance, 
despite the challenges thrown by the lockdown in the second 
wave of the COVID-19 pandemic.
Better ingredients are core areas of strength of your Company. 
With the aim of providing consumers with premium products 
for the OOH operator’s menu, your Company launched 
NESTEA Instant Green Tea Powder, a 100% pure and natural 
powder manufactured in the Choladi factory. NESTEA Instant 
Green Tea Powder can be used to make both hot and iced 
green tea, instantly. NESCAFÉ Sunrise Strong with a stronger 
and more aromatic coffee-chicory blend was introduced in 
South India.
With the rise of food delivery and the increased need of 
standardized and operator friendly solutions, your company 
continued to invest into differentiated solutions to  address 
the requirements of the new age food service industry. 2021 
saw the inclusion of easy step solutions to help make popular 
dishes like biryani and manchurian sauce, that were introduced 
in the menu. In addition to products, your Company continued 
to focus on service support by providing 135+ recipes to help 
customers build a strong menu with minimal steps, minimal 
pantry usage and easy delivery.
Your Company continued to grow and invest into the kiosk 
business through “Entrepreneurship for Youth” which helped 
create livelihood and job opportunities for  franchisers. 
Your Company now has  600+ franchise operated kiosks 
across channels, generating sustainable business for the 
entrepreneurs. To further unlock scalability, new kiosk models 
like express and trolley plus were also launched year to 
encourage more entrepreneurs to participate in this growing 
business opportunity with lower investments formats. 
Awards and Recognitions
Your Company’s performance and commitment has been 
recognized by leading industry forums for its work in the 
areas of corporate management, marketing and quality 
• Business Today recognized Mr. Suresh Narayanan as India’s 
Best CEO, FMCG
• CNBC TV18 India Business Leader Awards (IBLA) recognized 
Nestlé India as the “Outstanding Company of the year”
• Mr. Suresh Narayanan, Chairman and Managing Director, 
Nestle India, was honored as the Entrepreneurial CEO at EY 
Entrepreneur of The Year 2020
• Mr. Suresh Narayanan honoured amongst the Top 101 Male 
Gender Equality Champions Globally 
• MAGGI featured in Kantar BrandZ India’s Most Purposeful 
FMCG Brand List
• MAGGI and NESCAFÉ India awarded the most preferred 
brands of 2021 by Marksmen Daily and Zee Business
• NESCAFÉ recognised for its best-in-class marketing 
effectiveness and advertising communication and awarded  
2 silver metals and 1 bronze metal at the EFFIES. 
•  Ask Nestlé awarded gold at the Brand Equity Media strategy 
awards
• KITKAT Musical Breaks won gold in ET SPOTT Awards 
2021 in the category ‘Brand promotions on audio or music 
streaming apps’

29
NESTLÉ INDIA LIMITED
People Focus
Your Company has always considered safety, security and 
well-being of people at its core and continued with virtual 
engagements, virtual trainings, mental health initiatives and 
check-in programmes for its employees.
Your Company rolled-out ‘NestAid’, an ecosystem of care, 
that has initiatives for the security of Nestlé employees and 
their families. Organized under three pillars, the initiatives 
provide meaningful and impactful support. 
‘Plan for the Unforeseen’, the financial support pillar addresses 
the emergency needs and NesSHIELD- focuses on financial 
needs and health related expenses in an unfortunate event 
that a colleague passes away. 
‘Care when you need it’ the medical support pillar which 
ensures timely medical help through tie-ups with reputed 
hospitals, tele consultations and supply of oxygen 
concentrators and other medical facilities. 
‘Healthy Mind Healthy Life’ the wellbeing pillar focuses on 
employee’s mental and physical wellbeing, especially during 
the pandemic, through a tie-up with a leading employee 
assistance provider for counselling and self-help, nutrition 
support, sessions with medical experts and yoga practitioners.  
Your Company continued its commitment to the youth 
via Nesternship, a virtual internship programme for final 
year graduates and post-graduates across disciplines. The 
programme focused on upskilling 1,000 interns, providing 
them with a depth of experience and a wealth of knowledge 
to thrive in workplaces. Each student was provided a monthly 
stipend and interned with an expert from different functions 
of your Company.
Your Company continued its focus on upskilling their 
employees through various learning initiatives such as, Henri 
Nestlé Scholarship: An empowered learning solution that 
gives an opportunity to employees to pursue any learning 
of their choice. The organization reimbursed ` 50,000 per 
participant and had covered over 160 employees with the 
expectation that each scholar teaches other employees, 
covering over 200 employees. 
Your Company also introduced ‘Ascent’ a nine-month blended 
learning journey, designed to support employees transitioning 
to first time people manager roles; Nestlé India Learning 
Catalogue: A curated repository of over 300 resources to 
empower employees to learn at will, on the go, as per choice.
Your Company also started ‘NesVidya’ a micro-learning 
performance solution app, with over 500 users aimed to help 
employees learn concepts, evaluate progress and compare 
knowledge in byte-sized format. 
In 2021, your Company further accelerated use of virtual and 
digital platforms to build scale and intensity in training sales 
teams for continuous learning and engagement, covering 
around 650 sales employees and 8400 field force of business 
partners. Through this model of training of leveraging network 
of internal subject matter experts, customized content and 
global expertise, the sales teams motivated employeed to 
learn and improve performance.
Around 150 Nestlé volunteers participated in the ‘Virtual 
Employee Volunteering Programme’. Over 250 sessions were 
conducted on nutrition, environment, health and hygiene by 
volunteers that positively impacting the lives of hundreds of 
beneficiaries such as adolescents, women and waste workers.
Sales
Your Company’s organized trade witnessed a resurgence and 
good revenue growth and it continued on its path of robust 
and sustained growth in large metros, and also in smaller 
towns despite the impact of the second COVID-19 wave
Your Company set out firmly and resolutely on its 
RURBAN journey by using a healthy mix of a customized 
portfolio, direct distribution and enhanced distribution 
infrastructure, deployment of resources, regional and 
localized communication, enhanced visibility, participation 
in village haats and building consumer connect. Through 
Project RURBAN, your Company reached out to small towns 
with population less than 100,000 and large villages with 
population greater than 2,000, that offer long-term growth 
opportunities.
E-commerce channel showed strong acceleration and its 
growth was fuelled by new emerging formats such as 
quick commerce and Click & Mortar, leading to lower 
delivery times and improved shopper experience. Your 
Company’s effort to ensure last mile access were aided by 
hyperlocal - quick commerce channels. E-commerce made 
your Company’s products accessible at point of purchase, 
providing differentiated offerings to consumers through 
special and innovative product propositions through targeted 
digital communication for brands such as MAGGI, NESCAFÉ, 
KITKAT, CEREGROW, NANGROW, MILKMAID, RESOURCE 
HIGH PROTEIN. Lockdown relaxation after the second wave, 
paved the way for channel stabilization and shopper mobility 
increased across offline channels.
Supply Chain
Your Company developed a resilient supply chain that 
supported business growth despite adversities caused by 
the second wave of COVID-19. Staying agile it continued 
sourcing raw materials from over 400 suppliers and over 
100,000 farmers, while ensuring the safety of its partners 
and customers. 
Price outlook for key categories like edible oils, coffee, 
wheat, fuel remained firm to bullish while costs of packaging 
materials continued to increase amid supply constraints,

30
Nestlé India Limited | Annual Report - 2021
rising fuel and transportation costs. Input prices are expected 
to be on bullish trend both globally and to some extent locally. 
Fresh milk prices are expected to remain firm with continued 
increase in demand and rise in feed costs to farmers. In an 
environment of raw and packaging material inflation, the 
Company continues to keenly look for opportunities for cost 
optimization and efficiencies. Your Company is accelerating 
its commitment towards sustainability by increasing purchase 
of sustainable oils, coffee, cocoa etc 
To address short-term disruptions, it augmented  
co-manufacturing strategy, to enable speed to market and 
accelerated the paperless invoicing platform. Your Company 
shifted to shorter planning horizon, focusing on priority 
SKU’s and channel-wise planning and upscaled transport 
control tower to enhance stock and transit visibility.
Automation and digitalization across the supply chain 
enhanced efficiency in processes and speed to market 
providing transparency to suppliers, farmers, customers and 
consumers.
A simple, yet innovative example of this was the  timely 
implementation of a ‘telecaller model’ to take orders across 
trade channels. The front-line sales colleagues stood tall to 
overcome serious logistical obstacles and ensure availability. 
The efforts to ensure last mile access were aided by 
e-commerce and in particular hyperlocal channels. The 8,000 
SMEs your Company worked with were provided support by 
training, equipping them with orders and advance payments. 
Quality, safety and compliance continues to remain the 
backbone of supply chain operations team. Your Company 
enhanced quality in distribution that helped deliver fresher 
products on shelf and reduce carbon footprint in operations. 
In order to ensure sustainable logistics across the value 
chain, your Company focused on alternative mode of 
transportation such as railways/ waterways and optimizing 
vehicle fill rate. It introduced 4 waterways in 2021 to 
strengthen sustainable logistics. Your Company increased 
usage of bigger size vehicles from 5.9% in 2019 to 9.8% 
in 2021, increased usage of railways from 0% in 2019 to 
8.2% in 2021 and increased vehicle payload utilization from 
90.3% in 2019 to 92.5% in 2021.
Management Analysis
Global Economy
The global economy surged to an estimated 5.5% growth in 
2021 after contracting 3.4 % in 2020 (United Nations World 
Economic Situation and Prospects 2022). The global GDP in 
the first quarter was stronger, reflecting continued adaptation 
of economic activity to the pandemic.  Momentum weakened 
in the second quarter, weighed down by increasing infections 
in many emerging markets and developing economies (IMF 
World Economic Outlook 2021). 
Advanced economies and many middle-income countries 
attained substantial vaccination rates, and sizable fiscal 
support helped cushion some of the adverse economic 
impacts of the pandemic. However multidimensional 
challenges confronted the global economy such as subdued 
employment growth and rising debt levels.
Commodity prices soared in 2021 following the broad-based 
decline in 2020, with prices of several commodities reaching 
all-time highs.  Global energy prices surged in the second 
half of 2021, particularly for natural gas and coal, owing 
to recovering demand and constrained supply.  Non-energy 
commodity prices stabilized. 
Global inflation increased to 5.2% in 2021, because of 
persistent supply chain bottlenecks and rising freight costs 
across the globe impacting global production and trade, 
pushing up prices of essential goods. Food prices shot up 
by 22% in 2021, reaching their highest levels in a decade, 
with sharp increases in vegetable oils, cereals and dairy prices 
(FAO, 2021).
The surge in Covid infections in 2021 sapped consumer 
demand, but to a much more limited degree than the earlier 
waves (World Bank Report 2022), though emergence of new 
variants could further impair market confidence and derail 
economic recoveries.
The pace of global economic recovery is expected to be 
slow in the near term as recurring pandemic waves disrupt 
economic activity.  The recovery is also at risk from more 
persistent supply disruptions, inflationary pressures, financial 
stress and climate-related issues. As the world confronts the 
pandemic, climate emergency its economic impact is also 
gaining sharper focus.
Indian Economy
The recovery that has been underway in the Indian economy 
with the ebbing of the second wave of the pandemic 
encountered headwinds from a rapid surge in infections 
in a third wave marked by the rapid transmissibility of the 
Omicron variant. 
Accelerated rates of vaccination and substantially reduced 
mobility restrictions have improved consumer confidence 
(Deloitte Insights).  Vaccination is important for opening 
of the economy, and India delivered 157 crore doses that 
covered 91 crore people with at least one dose and 66 crore 
with both doses (Economic Survey 2021-2022).
India’s economy rebounded in the July–September quarter 
of FY 2021–22. GDP grew at 8.4% year on year (YoY) in 
Q2 FY2021–22, growth was driven by strong exports, 
because of global economic recovery, and domestic private 
investment as businesses ramped up production to meet 
festive demand (Deloitte Insights, 2022).  In September 2021

31
NESTLÉ INDIA LIMITED
rural consumption in the FMCG sector increased 58.2% YoY, 
twice as high as the increase in urban consumption of 27.7% 
(IBEF, 2021).
India’s Consumer Price Index inflation stood at 5.6% YoY 
in December 2021. RBI’s consumer confidence survey on 
both the present situation and future expectations suggests 
sustained uptick in consumer sentiment.  Private consumption 
is poised to see stronger recovery with rapid coverage in 
vaccination and faster normalisation of economic activity.
India has taken an important step by committing to reaching 
net-zero emissions by 2070 and reducing the carbon intensity 
of the economy by 45 % by 2030 (PIB, November 2021)
Opportunities and Risks
With the environment, economy, technology and society 
undergoing radical shifts, their impacts continue to challenge 
businesses and create risks and tensions, and opportunities 
for change and renewal.
Risks
Supply chain challenges
The worldwide supply chain continues to be affected by 
challenges relating to the COVID-19 pandemic, including 
delays and disruption.  Organizations need to reimagine and 
manage their supply chains differently to ensure business 
continuity and growth for the future and provide new solutions 
for customers to access products and services.
Digital vulnerabilities
There has been a growing dependency on digital systems 
which has been intensified during COVID19, with increased 
usage of digital tools and digital payments, adoption of 
platforms and devices that allow sensitive data to be 
shared with third parties - cloud service providers, data 
aggregators, application programming interfaces and other 
technology-related intermediaries.  Additionally, there has 
been an increase in cybersecurity threats such as malware 
and ransomware attacks, misinformation and frauds creating 
cyber risks for the business.
Climate change continues
The economic crisis created by the COVID-19 pandemic 
could further delay efforts to tackle climate change.  
Complete climate inaction could lead to losses projected at 
18% of global GDP, with different impacts across regions 
(Swiss Re Institute). Consequences may be irreversible for 
the environment, humankind, and economic activity
Opportunities
The Indian food processing industry has tremendous 
growth potential.  The COVID-19 pandemic led to increased 
acceptance for processed food (KPMG 2021).  Rural areas 
and Tier 2 and 3 cities are expected to continue driving the 
demand for processed food. 
Investing in Innovation  
Food companies need to continue to leverage their in-depth 
knowledge of food habits, nutrition, quality and safety 
in order to innovate and renovate, and adapt to this new 
normal. They must respond to new demands, reset defining 
relationships with consumers and reconsider their product 
portfolio in the post-COVID era to make products healthier, 
and allow consumers to make informed choices. 
Buttressing E-commerce to fuel growth 
E-commerce had an increasing impact on the FMCG industry 
globally during the pandemic as consumers increased their 
online shopping. As COVID-19 changed consumer habits, 
FMCG firms saw a surge in the contribution of e-commerce 
to their overall sales during Covid waves, and stabilization at 
higher levels as waves receded.
Enhancing digital first with a human touch
Consumers have become more digitally active.  According 
to McKinsey, the COVID-19 pandemic has fundamentally 
changed the pace of business, and the companies with 
superior technology capabilities had significant advantage.  
To meet new demands, companies are making digital, and 
technology investments, across the business model.  To 
enhance digital experience of the future and enable it to 
blend with the physical experience, businesses will have 
to focus on making consumer experience more authentic, 
more human.  This would mean bringing elements of tactile 
experience (touch, see, feel, smell, taste) as well as making 
digital interactions more authentic by including multilingual 
capabilities for wider customer reach and acceptance.
Accelerating sustainability and committing to planet
Addressing climate change will require a multi-stakeholder 
approach to collaborate and monitor progress, laying the 
foundation for a better world. This includes regenerative 
agriculture practices, a transition to 100% renewable 
electricity, as well as reformulating products to make them 
more sustainable.  There is a need for accelerating actions 
towards reducing greenhouse gas emissions, creating more 
recyclable or reusable packaging products.
Quality and Safety
Your Company across all its factories introduced life-saving 
rules. Safety is a priority for your Company  and it has been 
taken into account right from design stage to ensuring world 
class equipment, to ensure a safe workplace. Best in class 
ring-lock scaffolding has been deployed which has not only 
ensured quick turnaround time but also taken the safety of

32
Nestlé India Limited | Annual Report - 2021
civil construction several levels higher. Across all operating 
sites, “Line of risk” training has been deployed to increase 
people awareness to prevent any body parts in line of any 
energy, which can cause harm in any way.
Environment Sustainability
Reduction in Energy water usage, wastewater and direct 
Green House Gas Emissions
Your Company has sustainability as part of its DNA. The 
focus continued on improving operational efficiencies by 
reducing consumption of natural resources and reduction in 
energy and GHG emissions.  
From 2006 to 2021, for every ton of production, your 
Company reduced the usage of energy by around 43%, water 
usage by around 52%, generation of wastewater by around 
67% and specific direct GHG emissions by 57%.
Investing in Renewable Energy
Your Company’s key renewable energy projects contributed 
to GHG savings. This was implemented through the higher 
purchase of solar power for the Choladi factory and Nanjangud 
factory and replacement of fossil fuel with clean fuel for 
steam generation at the Bicholim factory.
Packaging and Plastic Waste Management 
Your Company will be annually eliminating 30 million plastic 
straws. These paper straws are responsibly sourced from 
renewable sources and certified by the Forest Stewardship 
Council (FSC).  This transition has also been incorporated for 
the packs of NESCAFÉ range of cold coffees. 
EPR (Extended Producer Responsibility) Initiative
Your Company engaged with various waste agencies, for end-
to-end management of plastic waste. In 2021, your Company 
achieved EPR of 23,600 MT tonnes through plastic waste 
management.  
Nestlé a+ brand collaborated with Tetra Pak to launch 
Cartons to Classroom, an initiative to increase awareness 
about recycling in India by converting used beverage cartons 
to create classroom furniture for schools for less-privileged 
children.
Sustainable Logistics
Your Company is one of the pioneers to transport consumer 
goods through railways and has initiated 4 inland waterways 
for strengthening sustainable logistics. 
Cautionary Statement
Statements in this Report, particularly those which relate to 
Management Discussion and Analysis as explained in the 
Corporate Governance Report, describing the Company’s 
objectives, projections, estimates and expectations may 
constitute ‘forward looking statements’ within the meaning 
of applicable laws and regulations. Actual results might 
differ materially from those either expressed or implied in the 
statement depending on the circumstances.
 
Directors’ Responsibility Statement
The Directors state that:
a) in the preparation of the annual accounts for the year ended 
31st December 2021, the applicable accounting standards 
have been followed and no material departures have been 
made from the same;
b) they have selected such accounting policies and applied 
them consistently and made judgments and estimates 
that are reasonable and prudent so as to give a true and 
fair view of the state of affairs of the Company as at 
31st December 2021 and of the profits of the Company for 
that period;
c) they have taken proper and sufficient care for the 
maintenance of adequate accounting records in accordance 
with the provisions of the Act for safeguarding the assets 
of the Company and for preventing and detecting fraud and 
other irregularities;
d) they have prepared the annual accounts on a going concern 
basis;
e) they have laid down internal financial controls to be 
followed by the Company and that such internal financial 
controls are adequate and were operating effectively; and
f) they have devised proper systems to ensure compliance 
with the provisions of all applicable laws and that such 
systems were adequate and operating effectively.
Directors and Key Managerial Personnel
Mr. Matthias Christoph Lohner (DIN: 08934420) Executive 
Director of the Company, retires by rotation at the  63rd AGM, 
and being eligible, has offered himself for re-appointment. 
A resolution seeking approval of the members for his 
re-appointment, forms part of the Notice of the 63rd AGM. 
As per the terms of his appointment, his re-appointment at 
the 63rd AGM as a director retiring by rotation would not 
constitute break in his appointment as a Whole-time Director, 
designated as “Executive Director – Technical”.
Based on the recommendation of the Nomination and 
Remuneration Committee, the Board of Directors of Company, 
has recommended appointment of Ms. Anjali Bansal as an 
Independent Non-Executive Director of the Company for a 
consecutive term of five years from 1st May 2022, to the 
members for their approval by way of a special resolution at 
the 63rd AGM. Ms. Anjali Bansal fulfils the criteria provided 
in the Nomination and Remuneration Policy of the Company 
including her expertise, experience, proficiency and integrity.
Brief resume, nature of expertise in specific functional 
areas, disclosure of relationships between directors inter-se,

33
NESTLÉ INDIA LIMITED
details of directorship held in other companies, membership 
of committees of the Board along with listed entities from 
which she resigned in the past three years, shareholding in 
the Company held by the directors proposed to be appointed/ 
re-appointed at the 63rd AGM, is provided in the Notice of 
the 63rd AGM.
All the Independent Directors of your Company have 
submitted the declaration confirming that they meet the 
criteria of independence as prescribed under the Act and the 
Listing Regulations and are not disqualified from continuing 
as Independent Directors. The Board is of the opinion that 
the Independent Directors of the Company possess requisite 
qualifications, experience and expertise and they hold highest 
standards of integrity. The Independent Directors of the 
Company have confirmed compliance of relevant provisions 
of Rule 6 of the Companies (Appointments and Qualifications 
of Directors) Rules, 2014. The Nomination and Remuneration 
Committee had adopted principles for identification of 
Key Managerial Personnel, Senior Management including 
the executive directors which are based on “The Nestlé 
Management and Leadership Principles” and “Nestlé Leadership 
Framework”. The policy of the Company on appointment and 
remuneration includes criteria for determining qualifications, 
positive attributes and independence of a director. The policy 
relating to the remuneration of directors, key managerial 
personnel, senior management and other employees is 
framed with the object of attracting, retaining and motivating 
talent which is required to run the Company successfully. 
The same is also available on the website of the Company at 
https://www.nestle.in/investors/policies.
An annual evaluation has been made by the Board of its 
own performance and that of its Committees and individual 
directors and the details of manner of performance evaluation 
of Directors, Board and its Committees are available in the 
Corporate Governance Report which forms an integral part of 
the Annual Report.
The details of familiarization programmes to Independent 
Directors with the Company, their roles, rights, responsibilities 
in the Company, nature of the industry in which the Company 
operates, business model of the Company and related 
matters are available on the website of the Company at 
https://www.nestle.in/investors/directorsandofficers/familiarisation-
programme.
Corporate Social Responsibility (“CSR”)
As on 31st December 2021, the CSR Committee comprised 
of Dr. Swati A. Piramal (Chairperson), Ms. Rama Bijapurkar, 
Independent Non- Executive Director, Mr. Suresh Narayanan, 
Chairman and Managing Director and Mr. David Steven 
McDaniel, Executive Director – Finance & Control and CFO of 
the Company, as members. The terms of reference of the CSR 
Committee are provided in the Corporate Governance Report.  
 
Your Company has also formulated a CSR Policy, 
which is available on the website of the Company at 
https://www.nestle.in/investors/policies. Annual Report on 
CSR activities as required under the Companies (Corporate 
Social Responsibility Policy) Rules, 2014, as amended (“CSR 
Rules”) is annexed as Annexure 2 and forms an integral part 
of this Report.
In terms of Section 135 of the Companies Act, 2013 read 
with CSR Rules and in accordance with the CSR Policy and 
the Annual Action Plan, your Company has during the year 
2021 spent over two percent of the average net profits of 
your Company during the three preceding financial years. 
Your Company provided relief efforts to the communities 
impacted by COVID-19 in collaboration with credible NGOs 
across various states. Your Company focused its relief efforts 
towards feeding programmes for less privileged sections, 
distributing essential groceries to the needy, and supporting 
the purchase of medical equipment and PPEs. The details are 
provided in the Annual Report on CSR activities. In addition 
to the above, your Company has been implementing societal 
activities since many decades under the umbrella of Creating 
Shared Value which have not been reckoned for arriving at 
the spends as per CSR Rules.
 
Project Vriddhi
As part of your Company’s vision of strengthening 
community-led rural development for positively impacting the 
lives of people, Nestlé India in collaboration with SM Sehgal 
Foundation launched the second phase of Project Vriddhi, 
reaching out to 1,300 beneficiaries. In the second phase, the 
initiative expanded to the villages of Naharpur and Gabanspur 
in Punhana block. The three-year old project was launched in 
2019 in the village of Rohira in Nuh district and has touched 
the lives of 1,500 beneficiaries till date. 
The project focuses on improving access to clean drinking 
water for communities, promoting water-saving irrigation 
practices, increasing awareness on nutrition, enhancing farm 
productivity and providing healthy learning environment in 
schools by improving hygiene and sanitation practices. 
 
Nestlé Healthy Kids Programme
The Nestlé Healthy Kids Programme started over a decade 
back continued to scale up with University partners and 
NGO partner, Magic Bus India Foundation year after year. In 
2021, your Company expanded the programme to Ladakh for 
reaching out to 650 adolescents. The programme has also 
expanded in terms of the curriculum, incorporating plastic 
waste management in the existing curriculum, as well as, 
including parents and teachers as direct beneficiaries. 
During year, 188,700 beneficiaries were reached with 50,546 
new enrollments. Till date over 445,000 adolescents across 
23 States/UTs have been encouraged to live healthier lives 
through this programme. To further equip beneficiaries about

34
Nestlé India Limited | Annual Report - 2021
implications of COVID-19 and its precautionary measures, 
your Company in collaboration with its NGO partner held 
virtual training sessions for the beneficiaries.
 
Project Jagriti
Project Jagriti continued to focus on creating an enabling 
environment for the best health outcomes, involving the 
health care system and stakeholders from the community. 
Your Company had launched this project in partnership with 
Mamta Health Institute for Mother and Child as part of its 
commitment to inspire people to lead healthier lives.
As a result of COVID-19, beneficiaries of Project Jagriti were 
trained virtually about the preventive measures of COVID-19. 
In 2021, 1.9 million beneficiaries (0.5 direct and 1.4 million 
indirect) were reached. 
Till 2021, the programme has reached out to 8.4 million 
beneficiaries (2.7 direct and 5.7 indirect) across 8 States/
UTs, strengthening the continuum of care. 
Project Serve Safe Food
Your Company launched Project ‘Serve Safe Food’ in 2016 
with National Association of Street Vendors of India (NASVI), 
to provide training to the street food vendors and enable them 
to voluntarily adopt the hygienic practices that improve the 
food quality. The behaviour-change that this initiative has 
brought has benefitted 25,900 street food vendors across 19 
States/UTs till 2021. 
As a result of COVID-19, street food vendors were anxious 
about impact of the pandemic on their livelihoods. Along 
with its NGO partner, Nidan your Company organized training 
sessions on food safety, hygiene, COVID-19 precautionary 
measures and digital payments. Your Company distributed 
over 36,900 grocery kits across various locations to provide 
relief to the street vendors whose livelihoods had been 
severely impacted by COVID-19.
Plastic Waste Management Awareness
Plastics play a key role in delivering a safe food supply from 
farm to fork and also helps in preventing food wastage.  
However, plastic waste has become a significant environment 
challenge.  Your Company is creating awareness about anti-
littering and waste segregation at source which is a key to 
establish sustainable waste management systems.
Your Company has worked towards creating an integrated 
plastic waste management model through its project titled 
“HILLDAARI” in Mussoorie, Dalhousie, Nainital, Ponda, 
Munnar and Mahabaleshwar that aims at empowering waste 
workers and also focuses on working collectively with local 
stakeholders like urban local bodies, institutions, residents, 
households, waste generators, and waste workers to raise 
awareness about anti-littering and segregation at source.
Given the pandemic situation, as a part of Hilldaari, your 
Company along with its partners organized virtual training for 
waste workers in Mussoorie, Nainital, Mahabaleshwar, Ponda 
and Dalhousie to help them adapt to the changes in the new 
normal, equipping them with safer working conditions. They 
were provided with PPE kits and safety kits and trained how 
to use it. Training was also provided how to collect waste 
with minimum contact, ensure proper sanitation and safety 
before meeting other people at their respective homes. News 
ways of collecting and disposing waste were introduced, 
such as establishing 4-part segregation (dry waste, wet 
waste, domestic bio-medical waste and  hazardous waste) 
for collection and proper disposal of waste. Waste workers 
were trained to use smartphones and digital monitoring 
apps required for monitoring the collection and segregation 
of waste. The waste workers were also trained in availing 
relevant government schemes.
Business Responsibility Report
Creating Shared Value is fundamental to how your Company 
does business. Your Company believes that it can only be 
successful in the long term by creating value both for its 
shareholders and for society. Your Company is mindful of 
the needs of the communities and works to make a positive 
difference and create maximum value for the society. It has 
been conducting business in a way that delivers long-term 
shareholder value and benefits society. 
As stipulated under the Listing Regulations, the Business 
Responsibility Report describing the initiatives taken by the 
Company from an environmental, social and governance 
perspective is annexed as Annexure 3 and forms an integral 
part of the Annual Report.
Statutory Auditors and Auditors’ Report
As per Section 139 of the Companies Act, 2013, read 
with the Companies (Audit and Auditors) Rules, 2014, the 
term of M/s. B S R and Co. LLP, Chartered Accountants 
(ICAI Registration No.: 101248W/W-100022) (“M/s. BSR”), 
as the Statutory Auditors of the Company, expires at the 
conclusion of 63rd AGM of the Company.
The Report given by M/s. BSR on the financial statement 
of the Company for the year 2021 is part of the Annual 
Report. The Notes on financial statement referred to in the 
Auditor’s Report are self-explanatory and do not call for any 
further comments. The Auditor’s Report does not contain 
any qualification, reservation, adverse remark or disclaimer. 
During the year under review, the Auditors had not reported 
any matter under Section 143 (12) of the Act, therefore no 
detail is required to be disclosed under Section 134 (3) (ca) 
of the Act.

35
NESTLÉ INDIA LIMITED
The Board of Directors of the Company at their meeting held 
on 11th November 2021, on the recommendation of the Audit 
Committee, have made its recommendation for appointment 
of M/s. S.R. Batliboi & Co. LLP, Chartered Accountants 
(ICAI Registration No.: 301003E/E300005) (“M/s. SRB”) as 
the Statutory Auditors of the Company, by the members at 
the 63rd AGM of the Company for a term of five consecutive 
years. Accordingly, an ordinary resolution, proposing 
appointment of M/s. SRB, as the Statutory Auditors of the 
Company for a term of five consecutive years i.e. from the 
conclusion of 63rd AGM till the conclusion of 68th AGM of the 
Company pursuant to Section 139 of the Act, forms part of 
the Notice of the 63rd AGM of the Company. The Company 
has received their written consent and a certificate that they 
satisfy the criteria provided under Section 141 of the Act and 
that the appointment, if made, shall be in accordance with the 
applicable provisions of the Act and rules framed thereunder.
M/s. SRB, is a firm of Chartered Accountants registered with 
the Institute of Chartered Accountants of India. M/s. SRB 
was established in the year 1949 and is a limited Liability 
Partnership Firm (“LLP”) incorporated in India. It has its 
registered office at 22, Camac Street, Kolkata apart from 7 
other branch offices in various cities in India. M/s. SRB has 
a valid Peer Review certificate and is part of S.R. Batliboi & 
Affiliates network of audit firms. It is primarily engaged in 
providing audit and assurance services to its clients.
 
Cost Accounts and Cost Auditors
The Company is required to make and maintain cost records 
for milk powder products as specified by the Central 
Government under sub-section (1) of section 148 of the Act. 
Accordingly, the Company has been making and maintaining 
the records as required. 
In terms of Section 148 of the Act read with Companies (Cost 
Records and  Audits)  Rules, 2014, the Audit Committee 
recommended and the Board of Directors appointed 
M/s. Ramanath Iyer and Co., Cost Accountants, New Delhi 
(Registration No.: 00019) being eligible, as Cost Auditors 
of the Company, to carry out the cost audit of milk powder 
products manufactured by the Company  falling  under  the  
specified Customs Tariff Act Heading 0402 in relation to the 
financial year ending 31st December 2022. The Company 
has received their written consent that the appointment 
is in accordance with the applicable provisions of the Act 
and rules framed thereunder. The Cost Auditors have 
confirmed that they are not disqualified to be appointed 
as the Cost Auditors of the Company for the year ending  
31st December 2022.
The remuneration of Cost Auditors has been approved by 
the Board of Directors on the recommendation of Audit 
Committee and in terms of the Act and Rules thereunder 
requisite resolution for ratification of remuneration of the Cost 
Auditors by the members has been set out in the Notice of the 
63rd AGM of your Company.
Secretarial Auditors and Secretarial Standards
The Secretarial Audit was carried out by M/s. S.N. 
Ananthasubramanian 
& 
Co., 
Company 
Secretaries 
(PCS Registration No.: 1774) for the financial year ended 
31st December 2021. The Report given by the Secretarial 
Auditors is annexed as Annexure 4 and forms an integral part 
of this Report. The Secretarial Audit Report is self-explanatory 
and does not call for any further comments. The Secretarial 
Audit Report does not contain any qualification, reservation, 
adverse remark or disclaimer. During the year under review, 
the Secretarial Auditors had not reported any matter under 
Section 143 (12) of the Act, therefore no detail is required to 
be disclosed under Section 134 (3) (ca) of the Act.
During the year, your Company has complied with applicable 
Secretarial Standards i.e. SS-1 and SS-2, relating to 
“Meetings of the Board of Directors” and “General Meetings”, 
respectively.
In terms of Section 204 of the Companies Act, 2013 read 
with the Companies (Appointment and Remuneration of 
Managerial Personnel) Rules, 2014, the Audit Committee 
recommended, and the Board of Directors appointed 
M/s. S.N. Ananthasubramanian & Co., Company Secretaries 
(Registration No.: 1774) as the Secretarial Auditors of 
the Company in relation to the financial year ending 
31st December 2022.
The Company has received their written consent that the 
appointment is in accordance with the applicable provisions 
of the Act and rules framed thereunder. The Secretarial 
Auditors have confirmed that they are not disqualified to be 
appointed as the Secretarial Auditors of the Company for the 
year ending 31st December 2022.
Meetings of the Board
Seven Meetings of the Board of Directors of the Company 
were held during the year 2021. The particulars of the 
meetings held and attendance by Directors are detailed 
in the Corporate Governance Report, which is annexed as 
Annexure 1 and forms an integral part of this Report.
Annual Return
In terms of Section 92(3) of the Companies Act, 2013 
and Rule 12 of the Companies (Management and 
Administration) Rules, 2014, the Annual Return of the 
Company is available on the website of the Company at 
https://www.nestle.in/investors/stockandfinancials/annualreturns.
 
Details of Loans, Guarantee and Investments
Details of loans, guarantee and investments are given in 
Note No. 6, 7, 11, 15 & 17, which forms part of the Financial 
Statements.

36
Nestlé India Limited | Annual Report - 2021
Related Party Transactions
Your Company has formulated a policy on related party 
transactions which is also available on the website of the 
Company at https://www.nestle.in/investors/policies. This 
policy deals with the review and approval of related party 
transactions. The Board of Directors of the Company has 
approved the criteria to grant omnibus approval by the Audit 
Committee within the overall framework of the policy on 
related party transactions.
All related party transactions are placed before the Audit 
Committee for review and approval. Prior omnibus approval is 
obtained for related party transactions on a quarterly basis for 
transactions which are of repetitive nature and/or entered in 
the ordinary course of business and are at arm’s length basis.
All related party transactions entered during the year were 
in ordinary course of the business and at arm’s length basis. 
No material related party transactions, i.e. transactions 
exceeding 10% of the annual consolidated turnover, as per 
the last audited financial statement, were entered during 
the year by your Company. Accordingly, the disclosure of 
related party transactions as required under Section 134(3)
(h) of the Companies Act, 2013, in Form AOC-2 is not 
applicable. Members may refer to Note No. 45 to the Financial 
Statement which sets out related party disclosures pursuant to 
IND AS-24.
In terms of Regulation 23(4) and other applicable provisions 
of the Listing Regulations, the members of the Company at 
the 60th Annual General Meeting held on 25th April 2019 
approved the Ordinary Resolution (“Ordinary Resolution”), 
inter-alia, for continuation of the payment of general licence 
fees (royalty) by the Company to Société des Produits Nestlé 
S.A. (“the Licensor”), being a related party, at the rate of 
4.5% (four and a half percent), net of taxes, of the net 
sales of the products sold by the Company as per the terms 
and conditions of the existing General Licence Agreements 
(“GLAs”), notwithstanding that the transaction(s) involving 
payments to the Licensor with respect to general licence fees 
(royalty), during any financial year including any part thereof, 
is considered material related party transaction(s) being in 
excess of the limits specified under Regulation 23(1A) of 
the Listing Regulations at any time. In terms of the Listing 
Regulations, no related party voted on the ordinary resolution. 
The ordinary resolution was  effective from 1st July 2019 
and approval of members shall be sought every five years in 
compliance with the applicable laws and regulations.
 
Risk Management
During the year, Mr. P. R. Ramesh and Ms. Roopa Kudva, Independent 
Non-Executive Directors, were appointed as members of the Risk 
Management Committee (“RMC”) with effect from 20th April 2021. 
 
Mr. Matthias Christoph Lohner, Executive Director-Technical, 
ceased to be the member of the RMC on 20th April 2021. 
As on 31st December 2021, the RMC comprised of 
Mr. Suresh Narayanan (Chairman), Mr. P. R. Ramesh (Member), 
Ms. Roopa Kudva (Member) and Mr. David Steven McDaniel 
(Member).
The RMC on timely basis informed the Board of Directors 
about risk assessment and minimization procedures. The RMC 
has, inter-alia, formulated a detailed Risk Management Policy, 
as prescribed under the Listing Regulations. In the opinion of 
the RMC, there are no such risks, which may threaten the 
existence of the Company. 
The terms of reference of the RMC are provided in the 
Corporate Governance Report, which forms an integral part 
of the Annual Report.
 
Scheme of Arrangement 
The Board of Directors, in their meeting held on 
28th July 2021, had approved the Scheme of Arrangement 
between the Company and its Members under Section 230 
of the Act, as amended, read with other applicable provisions 
of the Act and rules made thereunder (the “Scheme”), which 
envisages transfer of the entire balance of ` 8,374.3 Million 
standing to the credit of the General Reserves to Retained 
Earnings. The Scheme, under the relevant Section(s) of the 
Act, is subject to the approval of the shareholders and such 
other class of persons as directed by the Hon’ble National 
Company Law Tribunal, Delhi Bench (“NCLT”), sanction 
of the Hon’ble NCLT and such other approvals as may be 
prescribed. Your Company had received a ‘No Observation 
Letter’ dated 16th December 2021 from BSE Limited with  
‘no adverse observation’. The Company is in process of 
filing of an application with the NCLT, in due course for the 
sanction of the Scheme. 
Upon the Scheme becoming effective the entire amount 
of ` 8,374.3 Million standing to the credit of the General 
Reserves of the Company shall be reclassified and credited 
to the ‘Retained Earnings’ of the Company and constitute 
accumulated profits of the Company for the previous 
financial years, arrived at after providing for depreciation in 
accordance with the provisions of the Act and remaining 
undistributed in the manner provided in the Act and other 
applicable laws. The amount so transferred, pursuant to the 
Scheme, shall be available for utilisation by the Company 
for payout to the Members in accordance with the terms of 
the Scheme. The details of the Scheme and other related 
documents are available on the website of the Company at 
https://www.nestle.in/investors/stockandfinancials/scheme-
arrangement. 
 
Complaint filed in National Consumer Dispute 
Redressal Commission
The Union of India, Department of Consumer Affairs in 2015 
had filed a complaint before the National Consumer Dispute 
Redressal Commission on the allegation that by selling

37
NESTLÉ INDIA LIMITED
MAGGI Noodles in the past, your Company has indulged 
in unfair trade practice, sold defective goods to the public 
and sold goods which will be hazardous. Complaint seeks 
compensation of ` 2,845.5 million and punitive damages of  
` 3,554.1 million. Your Company has challenged the complaint. 
The court proceedings are currently ongoing.
 
Internal Financial Controls and their adequacy
The Directors had laid down internal financial controls to be 
followed by the Company and such policies and procedures 
adopted by the Company for ensuring the orderly and efficient 
conduct of its business, including adherence to Company’s 
policies, the safeguarding of its assets, the prevention and 
detection of frauds and errors, the accuracy and completeness 
of the accounting records and the timely preparation of 
reliable financial information. The Audit Committee evaluates 
the internal financial control system periodically.
 
Audit Committee
During the year, there was no change in the composition of 
Audit Committee. Accordingly, as on 31st December 2021, 
the Audit Committee comprised of Independent Non-Executive 
Directors, Mr. P. R. Ramesh (Chairman), Mr. Rajya Vardhan 
Kanoria (Member) and Ms. Roopa Kudva (Member). Powers 
and role of the Audit Committee are included in Corporate 
Governance Report, which forms an integral part of the Annual 
Report. All the recommendations made by the Audit Committee 
were accepted by the Board of Directors.
 
Vigil Mechanism
The Vigil Mechanism of the Company is governed by 
significant documents “The Nestlé Corporate Business 
Principles”, 
“The 
Nestlé 
Management 
and 
Leadership 
Principles”, “Nestlé India Code of Business Conduct” and 
“Nestlé India Vigil Mechanism/Whistle-blower Policy”. The 
documents are available on the website of the Company at 
https://www.nestle.in/investors/policies. The Code/ Policy 
provides for adequate safeguards against victimization of 
director(s)/ employee(s) who avail of the mechanism and 
also provides for direct access to the Chairman of the Audit 
Committee in exceptional cases. It is affirmed that no person 
has been denied access to the Audit Committee.
The Company provides an independent third party operated 
free phone and web-based Platform, namely, “Speak up”, to 
all internal and external stakeholders including directors and 
employees with a dedicated communication channel for reporting 
potential instances of non-compliance with Nestlé Corporate 
Business Principles or for reporting, on a confidential basis, any 
practices or actions believed to be inappropriate or illegal under 
the Nestlé India Code of Business Conduct.  Details of the link 
to “Speak up” is available on the website of the Company at 
https://www.nestle.com/aboutus/businessprinciples/report-
your-concerns. 
Further, the Company has appointed Ombudsman for Infant 
Code, under which employees can report Infant Code violations 
directly to the Ombudsman, with adequate safeguard to protect 
the employee reporting. 
The Company sensitizes the availability of the above vigil 
mechanism from time to time to the directors and employees 
of the Company.
Information regarding Conservation of Energy, 
Technology Absorption and Foreign Exchange 
Earnings and Outgo
Information required under Section 134(3)(m) of the Act read 
with Rule 8 of the Companies (Accounts) Rules, 2014 for the 
financial year ended 31st December 2021, in relation to the 
Conservation of Energy, Technology Absorption and Foreign 
Exchange Earnings and Outgo is annexed as Annexure 5 and 
forms an integral part of this Report.
 
Information regarding employees and related 
disclosures
Your Company considers people as its biggest assets and 
‘Believing in People’ is at the heart of its human resource 
strategy. It has put concerted efforts in talent management 
and succession planning practices, strong performance 
management and learning and training initiatives to ensure 
that your Company consistently develops inspiring, strong 
and credible leadership. During the year, the focus of your 
Company was to ensure that young talent is nurtured and 
mentored consistently, that rewards and recognition are 
commensurate with performance and that employees have 
the opportunity to develop and grow.
Your Company has established an organization structure 
that is agile and focused on delivering business results. With 
regular communication and sustained efforts, it is ensuring 
that employees are aligned on common objectives and have 
the right information on business evolution. Your Company 
strongly believes in fostering a culture of trust and mutual 
respect in all its employees and seeks to ensure that Nestlé 
values and principles are understood by all and are the 
reference point in all people matters.
The statement of Disclosure of Remuneration under Section 197 
of the Act and Rule 5(1) of the Companies (Appointment and 
Remuneration of Managerial Personnel) Rules, 2014 (‘Rules’), is 
annexed as Annexure 6 and forms an integral part of this Report. 
As per second proviso to Section 136(1) of the Act and second 
proviso of Rule 5 of the Rules, the Report and Financial Statements 
are being sent to the Members of the Company excluding the 
statement of particulars of employees under Rule 5(2) of the Rules. 
Any member interested in obtaining a copy of the said statement 
may write to the Company Secretary at the Registered Office of 
the Company or at the email address: investor@in.nestle.com.
As per the requirement of The Sexual Harassment of Women

38
Nestlé India Limited | Annual Report - 2021
at the Workplace (Prevention, Prohibition and Redressal) Act, 
2013 (“POSH”), your Company has a robust mechanism in 
place to redress complaints reported under it. The Company 
has complied with provisions relating to the constitution of 
Internal Committee under POSH. The Internal Committee (IC) 
comprises of internal members and external member who has 
extensive experience in the field. In 2021, one case of sexual 
harassment was reported, which was investigated and resolved 
as per the provisions of the POSH. During the course of 2021, 
initiatives were undertaken to demonstrate the Company’s 
zero tolerance philosophy against discrimination and sexual 
harassment, which included creation of comprehensive and 
easy to understand training and communication material 
which are also made easily accessible. In addition, online 
workshops were also run for the employees to enhance 
awareness and knowledge of other biases that may influence 
thinking and actions by running the unconscious bias session. 
Statement on Investor Education and Protection 
Fund
Pursuant to the provisions of Section 124 of the Act, Investor 
Education and Protection Fund Authority (Accounting, Audit, 
Transfer and Refund) Rules, 2016 (“IEPF Rules”) read with 
the relevant circulars and amendments thereto, the amount of 
dividend remaining unpaid or unclaimed for a period of seven 
years from the due date is required to be transferred to the 
Investor Education and Protection Fund (“IEPF”), constituted 
by the Central Government. The Company had, accordingly, 
transferred ` 4,365,900/- and ` 5,114,640/-, being the 
unpaid and unclaimed dividend amount pertaining to Final 
dividend 2013 & Interim Dividend 2014; and Second Interim 
2014, respectively, during the year 2021, to the IEPF.
Pursuant to the provisions of IEPF Rules, all shares in respect 
of which dividend has not been paid or claimed for seven 
consecutive years shall be transferred by the Company 
to the designated Demat Account of the IEPF Authority 
(“IEPF Account”) within a period of thirty days of such 
shares becoming due to be transferred to the IEPF Account. 
Accordingly, the Company has transferred such equity shares 
on which the dividend remained unpaid or unclaimed for seven 
consecutive years to the demat account of IEPF Authority, 
after following the prescribed procedure.
 
Credit Rating
The Company has been awarded AAA credit rating for its bank 
credit facilities by CRISIL. It is the highest rating and indicates 
a stable outlook for the Company. The rating reflects that 
the Company has serviced its financial obligations on time. 
As regards the short-term facility provided by the bank, the 
Company has been awarded the credit rating of A1+. The 
rating reflects strong degree of safety and lowest credit risk.
 
 
General
During the year, there were no transaction requiring 
disclosure or reporting in respect of matters relating to: 
(a) details relating to deposits covered under Chapter V of the 
Act; (b) issue of equity shares with differential rights as to 
dividend, voting or otherwise; (c) issue of shares (including 
sweat equity shares) to employees of the Company under any 
scheme; (d) raising of funds through preferential allotment 
or qualified institutions placement; (e) significant or material 
order passed by the Regulators or Courts or Tribunals which 
impact the going concern status and Company’s operations in 
future; (f) pendency of any proceeding under the Insolvency 
and Bankruptcy Code, 2016; and (g) instance of one-time 
settlement with any bank or financial institution.
 
Trade Relations
The Company maintained healthy, cordial and harmonious 
industrial relations at all levels. Despite severe competition, 
the enthusiasm and unstinting efforts of the employees 
have enabled the Company to remain at the forefront of the 
Industry.
Your Company continued to receive co-operation and 
unstinted support from the distributors, retailers, stockist, 
suppliers and others associated with the Company as its 
trading partners. The Directors wish to place on record their 
appreciation for the same and your Company will continue 
in its endeavor to build and nurture strong links with trade, 
based on mutuality, respect and co-operation with each other 
and consistent with consumer interest.
 
Appreciation
Your Company has been able to operate efficiently because 
of the culture of professionalism, creativity, integrity and 
continuous improvement in all functions and areas as well 
as the efficient utilization of the Company’s resources for 
sustainable and profitable growth.
The Directors hereby wish to place on record their appreciation 
of the efficient and loyal services rendered by each and every 
employee, without whose whole-hearted efforts, the overall 
satisfactory performance would not have been possible. Your 
Directors look forward to the long-term future with confidence. 
On behalf of the Board of Directors
Date : 17th February 2022		
Suresh Narayanan 
Place : Gurugram	
	
  Chairman and Managing Director

39
NESTLÉ INDIA LIMITED
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
NESTLÉ INDIA LIMITED
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Nestlé India 
Limited (“the Company”), which comprise the balance sheet 
as at 31 December 2021, and the statement of profit and 
loss (including other comprehensive income), statement of 
changes in equity and statement of cash flows for the year 
then ended, and notes to the financial statements, including 
a summary of the significant accounting policies and other 
explanatory information.
In our opinion and to the best of our information and 
according to the explanations given to us, the aforesaid  
financial statements give the information required by the 
Companies Act, 2013 (“Act”) in the manner so required and 
give a true and fair view in conformity with the accounting 
principles generally accepted in India, of the state of affairs of 
the Company as at 31 December 2021, and profit and other 
comprehensive income, changes in equity and its cash flows 
for the year ended on that date. 
Basis for Opinion
We conducted our audit in accordance with the Standards 
on Auditing (SAs) specified under section 143(10) of 
the Act. Our responsibilities under those SAs are further 
described in the Auditor’s Responsibilities for the Audit 
of the Financial Statements section of our report. We are 
independent of the Company in accordance with the Code 
of Ethics issued by the Institute of Chartered Accountants 
of India together with the ethical requirements that are 
relevant to our audit of the financial statements under the 
provisions of the Act and the Rules thereunder, and we 
have fulfilled our other ethical responsibilities in accordance 
with these requirements and the Code of Ethics. We believe 
that the audit evidence we have obtained is sufficient 
and appropriate to provide a basis for our opinion on the 
financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional 
judgment, were of most significance in our audit of the 
financial statements of the current period. These matters 
were addressed in the context of our audit of the financial 
statements as a whole, and in forming our opinion thereon, 
and we do not provide a separate opinion on these matters.

40
Revenue Recognition
See note 2 and 35 to the financial statements
The key audit matter
How the matter was addressed in our audit
Revenue from the sale of goods is recognized at the moment 
when control has been transferred to the customer and is 
measured net of trade discounts, rebates and pricing allowances 
to customers (collectively ‘trade spends’). 
There is a risk that revenue may be overstated because of 
fraud, resulting from the pressure local management may feel 
to achieve performance targets. Revenue is also an important 
element of how the company measures its performance, upon 
which management is incentivized. The Company focuses on 
revenue as a key performance measure, which could create an 
incentive for revenue to be recognized before control has been 
transferred.
Our audit procedures included:
•	
We assessed the appropriateness of the revenue 
recognition accounting policies by comparing with 
applicable accounting standards.
•	
We evaluated the design, tested the implementation and 
operating effectiveness of key internal controls including 
general IT controls and key IT application controls over 
recognition of revenue.
•	
We performed substantive testing by selecting samples of 
revenue transactions recorded during the year by testing 
the underlying documents which included invoices, good 
dispatch notes, customer acceptances and shipping 
documents (as applicable).
•	
We carried out analytical procedures on revenue 
recognised during the year to identify unusual variances.
•	
We tested, on a sample basis, specific revenue 
transactions recorded before and after the financial year 
end date to determine whether the revenue had been 
recognised in the appropriate financial period.
•	
We tested manual journal entries posted to revenue to 
identify unusual items.
Provision for Contingencies
See note 2, 22, 26 and 38 to the financial statements
The key audit matter
How the matter was addressed in our audit
The management is required to make judgements and estimates 
in relation to the issues and exposures arising from a range of 
matters relating to direct tax, indirect tax, claims, general legal 
proceedings and other eventualities arising in the regular course 
of business. The Company is also subject to complexities arising 
from uncertain tax positions on deductibility of expenses.
The key judgement lies in determining the likelihood and 
magnitude of an unfavorable outcome and interpretations of 
the legal aspects, tax legislations and judgements previously 
made by authorities. By nature, these are complex and include 
many variables.
Our audit procedures included:
•	
We tested the design, implementation and operating 
effectiveness of key internal controls around the 
recognition and measurement of provisions.
•	
We inquired the status in respect of significant provisions 
with the Company’s internal tax and legal team.
•	
We involved our subject matter experts, wherever 
required, to assess the value of provisions in light of 
the nature of the exposures, applicable regulations and 
related correspondence with the authorities.
•	
We challenged the assumptions and critical judgements 
made by the Company which impacted their estimate of 
provision required, considering judgements previously 
made by the authorities in the relevant jurisdictions or any 
relevant opinions given by the Company’s advisors and 
assessing whether there was an indication of management 
bias.
•	
We verified the computation of provision on a test check 
basis.

41
NESTLÉ INDIA LIMITED
Provision for defined benefit pension plan
See note 3 and 36 to the financial statements
The key audit matter
How the matter was addressed in our audit
During the year, the defined benefit pension scheme for certain 
category of employees was modified and replaced by ‘Future 
ready plan’. 
The defined benefit obligation for past period of service as per 
the ‘Future Ready Plan’ has been determined based on actuarial 
valuation carried out by an independent actuary using the 
employee data, methods and assumptions as per the modified 
plan.
The aforesaid valuation involves voluminous employee data, 
subjectivity and judgement in determination of key assumptions 
used in valuation of the defined benefit obligation.
Considering this is a significant non-recurring transaction and 
subjectivity and judgements involved, there is a risk of data 
and assumptions being inappropriate resulting in an inaccurate 
valuation of defined benefit obligation.
Our audit procedures included:
•	
We tested design & implementation and operating 
effectiveness of key internal controls over completeness 
and accuracy of data and assumptions used in valuation 
of defined benefit obligation.
•	
We evaluated and challenged the key assumptions in 
valuation of defined benefit obligation.
•	
We tested the data used in valuation of defined benefit 
obligation on a test check basis.
•	
We assessed the appropriateness of the accounting 
treatment and disclosures in the financial statements in 
respect of defined benefit pension scheme and changes 
in the scheme/plan during the year in accordance with Ind 
AS 19 – Employee Benefits.
Other Information  
The Company’s management and Board of Directors are 
responsible for the other information. The other information 
comprises the information included in the Company’s annual 
report, but does not include the financial statements and our 
auditors’ report thereon.
Our opinion on the financial statements does not cover the 
other information and we do not express any form of assurance 
conclusion thereon.
In connection with our audit of the financial statements, our 
responsibility is to read the other information and, in doing so, 
consider whether the other information is materially inconsistent 
with the financial statements or our knowledge obtained in 
the audit or otherwise appears to be materially misstated. If, 
based on the work we have performed, we conclude that there 
is a material misstatement of this other information, we are 
required to report that fact. We have nothing to report in this 
regard.
Management’s and Board of Directors’ Responsibility for the 
Financial Statements
The Company’s Management and Board of Directors are 
responsible for the matters stated in section 134(5) of 
the Act with respect to the preparation of these financial 
statements that give a true and fair view of the state of 
affairs, profit/loss and other comprehensive income, changes 
in equity and cash flows of the Company in accordance 
with the accounting principles generally accepted in India, 
including the Indian Accounting Standards (Ind AS) specified 
under section 133 of the Act. This responsibility also includes 
maintenance of adequate accounting records in accordance 
with the provisions of the Act for safeguarding of the assets 
of the Company and for preventing and detecting frauds and 
other irregularities; selection and application of appropriate 
accounting policies; making judgments and estimates that 
are reasonable and prudent; and design, implementation and 
maintenance of adequate  internal  financial  controls that were 
operating effectively for ensuring accuracy and completeness 
of the accounting records, relevant to the preparation and 
presentation of the  financial statements that give a true and 
fair view and are free from material misstatement, whether 
due to fraud or error.
In preparing the financial statements, the Management 
and Board of Directors are responsible for assessing the 
Company’s ability to continue as a going concern, disclosing, 
as applicable, matters related to going concern and using 
the going concern basis of accounting unless the Board of 
Directors either intends to liquidate the Company or to cease 
operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the 
Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial 
Statements
Our objectives are to obtain reasonable assurance about 
whether the financial statements as a whole are free from 
material misstatement, whether due to fraud or error, and to 
issue an auditor’s report that includes our opinion. Reasonable 
assurance is a high level of assurance, but is not a guarantee 
that an audit conducted in accordance with SAs will always 
detect a material misstatement when it exists. Misstatements

42
can arise from fraud or error and are considered material if, 
individually or in the aggregate, they could reasonably be 
expected to influence the economic decisions of users taken 
on the basis of these financial statements. 
As part of an audit in accordance with SAs, we exercise 
professional judgment and maintain professional skepticism 
throughout the audit. We also:
•	
Identify and assess the risks of material misstatement of 
the financial statements, whether due to fraud or error, 
design and perform audit procedures responsive to those 
risks, and obtain audit evidence that is sufficient and 
appropriate to provide a basis for our opinion. The risk 
of not detecting a material misstatement resulting from 
fraud is higher than for one resulting from error, as fraud 
may involve collusion, forgery, intentional omissions, 
misrepresentations, or the override of internal control. 
•	
Obtain an understanding of internal control relevant to 
the audit in order to design audit procedures that are 
appropriate in the circumstances. Under section 143(3)
(i) of the Act, we are also responsible for expressing 
our opinion on whether the company has adequate 
internal financial controls with reference to financial 
statements in place and the operating effectiveness of 
such controls.
•	
Evaluate the appropriateness of accounting policies 
used and the reasonableness of accounting estimates 
and related disclosures in the  financial statements made 
by the Management and Board of Directors.
•	
Conclude on the appropriateness of the Management 
and Board of Directors use of the going concern basis of 
accounting and, based on the audit evidence obtained, 
whether a material uncertainty exists related to events 
or conditions that may cast significant doubt on the 
Company’s ability to continue as a going concern. If 
we conclude that a material uncertainty exists, we are 
required to draw attention in our auditor’s report to the 
related disclosures in the financial statements or, if such 
disclosures are inadequate, to modify our opinion. Our 
conclusions are based on the audit evidence obtained 
up to the date of our auditor’s report. However, future 
events or conditions may cause the Company to cease 
to continue as a going concern.
•	
Evaluate the overall presentation, structure and content 
of the financial statements, including the disclosures, 
and whether the financial statements represent the 
underlying transactions and events in a manner that 
achieves fair presentation.
We communicate with those charged with governance 
regarding, among other matters, the planned scope and 
timing of the audit and significant audit findings, including 
any significant deficiencies in internal control that we identify 
during our audit.
We also provide those charged with governance with a 
statement that we have complied with relevant ethical 
requirements regarding independence, and to communicate 
with them all relationships and other matters that may 
reasonably be thought to bear on our independence, and 
where applicable, related safeguards.
From the matters communicated with those charged with 
governance, we determine those matters that were of most 
significance in the audit of the financial statements of the 
current period and are therefore the key audit matters. We 
describe these matters in our auditors’ report unless law or 
regulation precludes public disclosure about the matter or 
when, in extremely rare circumstances, we determine that 
a matter should not be communicated in our report because 
the adverse consequences of doing so would reasonably be 
expected to outweigh the public interest benefits of such 
communication.
Report on Other Legal and Regulatory Requirements
1.	
As required by the Companies (Auditors’ Report) Order, 
2016 (“the Order”) issued by the Central Government 
in terms of section 143 (11) of the Act, we give in the 
“Annexure A” a statement on the matters specified in 
paragraphs 3 and 4 of the Order, to the extent applicable.
(A)	 As required by Section 143(3) of the Act, we 
report that:
a)	
We have sought and obtained all the information 
and explanations which to the best of our 
knowledge and belief were necessary for the 
purposes of our audit.
b)	
In our opinion, proper books of account as required 
by law have been kept by the Company so far as it 
appears from our examination of those books.
c)	
The balance sheet, the statement of profit and 
loss (including other comprehensive income), the 
statement of changes in equity and the statement 
of cash flows dealt with by this report are in 
agreement with the books of account.
d)	
In our opinion, the aforesaid financial statements 
comply with the Ind AS specified under section 
133 of the Act. 
e)	
On the basis of the written representations received 
from the directors as on 31 December 2021 taken 
on record by the Board of Directors, none of the 
directors is disqualified as on 31 December 2021 
from being appointed as a director in terms of 
Section 164(2) of the Act.
f)	
With respect to the adequacy of the internal 
financial controls with reference to financial

43
NESTLÉ INDIA LIMITED
statements of the Company and the operating 
effectiveness of such controls, refer to our 
separate Report in “Annexure B”.
(B)	 With respect to the other matters to be included in 
the Auditors’ Report in accordance with Rule 11 of 
the Companies (Audit and Auditors) Rules, 2014, 
in our opinion and to the best of our information 
and according to the explanations given to us:
i.	
The Company has disclosed the impact 
of pending litigations as at 31 December 
2021 on its financial position in its financial 
statements - Refer Note 38 and 44 to the 
financial statements; 
ii.	
The Company did not have any long-term 
contracts including derivate contracts for 
which there were any material foreseeable 
losses.  
iii.	
There has been no delay in transferring 
amounts, required to be transferred, to the 
Investor Education and Protection Fund by 
the Company.
iv.	
The disclosures in the financial statements 
regarding holdings as well as dealings in 
specified bank notes during the period from 8 
November 2016 to 30 December 2016 have 
not been made in these financial statements 
since they do not pertain to the financial year 
ended 31 December 2021. 
(C)	 With respect to the matter to be included in 
the Auditors’ Report under section 197(16): 
In our opinion and according to the information 
and explanations given to us, the remuneration 
paid by the company to its directors during the 
current year is in accordance with the provisions of 
Section 197 of the Act. The remuneration paid to 
any director is not in excess of the limit laid down 
under Section 197 of the Act. The Ministry of 
Corporate Affairs has not prescribed other details 
under Section 197(16) which are required to be 
commented upon by us.
For B S R & Co. LLP
Chartered Accountants
Firm’s Registration No. 101248W/W-100022
 
Place: Delhi	
Vikram Advani
Date: 17 February 2022	
Partner
Membership No. 091765
UDIN: 22091765ACXFTN7243

44
Annexure - A to the Independent Auditors’ Report of even 
date on the financial statements of Nestlé India Limited
(i)	
(a)	
The Company has maintained proper records 
showing full particulars, including quantitative 
details and situation of fixed assets.
	
(b)	
The Company has a regular programme of physical 
verification of its fixed assets by which all fixed 
assets are verified in a phased manner over a 
period of two years. In our opinion, the periodicity 
of physical verification is reasonable having regard 
to the size of the Company and the nature of its 
assets. In accordance with the programme, certain 
assets were physically verified by the management 
during the current year. As informed to us and 
based on records examined by us, no material 
discrepancies were noticed on such verification.
	
(c)	
According to the information and explanations 
given to us and based on the examination of the 
registered sale deed / transfer deed / conveyance 
deed provided to us, we report that, the title 
deeds, comprising all the immovable properties 
of land and buildings which are freehold, are held 
in the name of the Company as at the balance 
sheet date. In respect of immovable properties 
of land and buildings that have been taken on 
lease and disclosed as fixed asset in the financial 
statements, the lease agreements are in the name 
of the Company, where the Company is the lessee 
in the agreement.
(ii)	
The inventory, except goods in transit and stock 
lying with third parties, has been physically verified 
by the management during the year. In our opinion, 
the frequency of such verification is reasonable. 
Confirmations have been obtained for stock lying 
with third parties at the year end. According to the 
information and explanations given to us and based on 
records examined by us, the discrepancies noticed on 
physical verification of inventory as compared to book 
records were not material and have been properly dealt 
with in the books of account.
(iii)	 According to the information and explanations given to 
us and on the basis of our examination of the records of 
the Company, the Company has not granted any loans, 
secured or unsecured, to companies, firms, Limited 
Liability Partnerships or other parties covered in the 
register maintained under section 189 of the Companies 
Act, 2013.  Accordingly, clause 3(iii) of the order is not 
applicable.
iv)	
According to the information and explanations given to 
us and on the basis of our examination of the records 
of the Company, the Company has not entered into 
any transactions in respect of loans, investments, 
guarantees, and security which are covered under 
section 185 and 186 of the Companies Act, 2013.
(v)	
According to the information and explanations given to 
us, the Company has not accepted any deposits covered 
under section 73 to 76 or any other relevant provisions 
of the Companies Act, 2013 and the rules framed there 
under. Accordingly, clause 3(v) of the Order is not 
applicable.
(vi)	 We have broadly reviewed the records maintained by 
the Company pursuant to the rules prescribed by Central 
Government for maintenance of cost records under sub 
section (1) of Section 148 of the Act and are of the 
opinion that prima facie, the prescribed accounts and 
records have been made and maintained. However, we 
have not made a detailed examination of the records.
(vii)	 (a)	
According to the information and explanations 
given to us and on the basis of our examination of 
the records of the Company, amounts deducted/ 
accrued in the books of account in respect of 
undisputed statutory dues including Provident 
Fund, Employees’ State Insurance, Income-tax, 
Duty of Customs, Goods and Services Tax, Cess 
and other material statutory dues have been 
regularly deposited during the year by the Company 
with the appropriate authorities.
	
	
According to the information and explanations 
given to us and on the basis of our examination 
of the records of the Company, no undisputed 
amounts payable in respect of Provident Fund, 
Employees’ State Insurance, Income-tax, Duty 
of customs, Goods and Services Tax, Cess and 
other material statutory dues were in arrears as at 
31 December 2021 for a period of more than six 
months from the date they became payable.
(b)	
According to the information and explanations 
given to us and on the basis of our examination 
of the records of the Company, except as stated 
in Appendix 1, there are no dues of Income-tax, 
Goods and Services tax, Sales tax, Service tax, 
Duty of customs, Duty of excise or Value added 
tax which have not been deposited on account of 
any dispute.
(viii)	 According to the information and explanations given to 
us and on the basis of our examination of the records 
of the Company, the Company has not defaulted in 
repayment of dues to its bankers. The Company did 
not have any dues payable to any financial institutions, 
government or debentures holders during the year.
(ix)	 The Company has not raised any money by way 
of initial public offer, further public offer (including 
debt instruments) and term loans during the year. 
Accordingly, the provisions of clause 3(ix) of the Order 
are not applicable to the Company.
(x)	
According to the information and explanations given to 
us, no material fraud by the Company or no material 
fraud on the Company by its officers or employees, has 
been noticed or reported during the year.

45
NESTLÉ INDIA LIMITED
(xi)	 According to the information and explanations given 
to us and based on our examination of the records, 
the Company has paid or provided for managerial 
remuneration in accordance with the requisite approvals 
mandated by the provisions of section 197 read with 
Schedule V to the Act.
(xii)	 In our opinion and according to the information and 
explanations given to us, the Company is not a Nidhi 
Company. Accordingly, clause 3(xii) of the Order is not 
applicable.
(xiii)	 According to the information and explanations given to 
us and based on our examinations of the records of the 
Company, transactions with the related parties are in 
compliance with sections 177 and 188 of the Act, where 
applicable. The details of such related party transactions 
have been disclosed in the financial statements as 
required by applicable accounting standards.
(xiv)	According to the information and explanations given to 
us and based on our examination of the records of the 
Company, the Company has not made any preferential 
allotment or private placement of shares or fully or partly 
convertible debentures during the year. Accordingly, 
clause 3(xiv) of the Order is not applicable.
(xv)	 According to the information and explanations given 
to us and based on our examination of the records of 
the Company, the Company has not entered into non-
cash transactions with directors or persons connected 
with him. Accordingly, clause 3(xv) of the Order is not 
applicable.
(xvi)	According to the information and explanations given to 
us, the Company is not required to be registered under 
section 45-IA of the Reserve Bank of India Act, 1934.
For B S R & Co. LLP
Chartered Accountants
Firm’s registration no.: 101248W/W-100022
Place: Delhi	
Vikram Advani
Date: 17 February 2022	
Partner
Membership No.: 091765
UDIN: 22091765ACXFTN7243
Appendix 1 to the statement on the matters specified in paragraph vii(b) of the Companies Auditors Report Order, 2016
(` in Million)
Name of the Statute
Nature of 
Dues
Amount 
 Amount 
Paid under 
protest 
Period to which amount 
relates
Forum where case is 
pending
Central excise Act, 1944
Duty of Excise
 49.4 
 43.8 September 1996 - December 2000, 
July 2001 to August 2001
Supreme Court
Central excise Act, 1944
Duty of Excise
 0.9 
 - 1994
High Court
Customs Act 1962
Custom Duty
 105.8 
 6.7 2008-2013
Commissioner
Customs Act 1962
Custom Duty
 20.8 
 12.1 Feb-12 to Apr-13
Tribunal
Goods and Services Tax Act
Goods 
and 
Services Tax
 731.5 
 - Nov-17 to Jun-18
National Anti-Profiteering 
Authority
The Finance Act, 1994
Service Tax
 417.1 
 4.6 2005-2007, 2008, 2010-2011
High Court
Central Sales Tax/ Value Added Tax
Sales Tax/ VAT 
 111.2 
 2.5 1997-1998,  2000-2006, 2007-
2009, 2014-2015
High Court
Central Sales Tax/ Value Added Tax
Sales Tax/ VAT 
 48.3 
 42.6 2006-2007, 2010-2013, 2014-15
Tribunal
Central Sales Tax/ Value Added Tax
Sales Tax/ VAT 
 111.1 
 - 2005-2006, 2007-2010
Appellate & Revisional Board
Central Sales Tax/ Value Added Tax
Sales Tax/ VAT 
 7.5 
 1.9 2005- 2007, 2008-2009, 2011-
2012, 2014-2015
Commissioner (Appeals)
Central Sales Tax/ Value Added Tax
Sales Tax/ VAT 
 198.3 
 1.5 2004- 2005, 2010-2012, 2013-
2014, 2015-2017
Commissioner
Central Sales Tax/ Value Added Tax
Sales Tax/ VAT 
 201.5 
 1.0 2010-11,2014-16
Joint Commissioner (Appeals)
Central Sales Tax/ Value Added Tax
Sales Tax/ VAT 
 201.0 
 5.2 2008-10, 2011-2012, 2013-16, 
2017-2018
Joint Commissioner
Central Sales Tax/ Value Added Tax
Sales Tax/ VAT 
 7.3 
 2.4 2008-2009, 2012-2014, 2015-2016
Additional Commissioner
Central Sales Tax/ Value Added Tax
Sales Tax/ VAT 
 1.1 
 0.2 2007-2008
Assessing Officer
Central Sales Tax/ Value Added Tax
Sales Tax/ VAT 
 45.3 
 - 2015-2016
Court of revisional authority
Income Tax Act, 1961
Income Tax
 1,253.2 
 - 1996-2001, 2004-2008
Supreme Court
Income Tax Act, 1961
Income Tax
 3,139.8 
 - 2000-2004, 2008-2014
High Court
Income Tax Act, 1961
Income Tax
 12.3 
 6.3 2014-2015, 2016-2017
Comissioner of Income Tax
Income Tax Act, 1961
Income Tax
 4,765.9 
 350.0 2014-2015, 2015-2016
Income Tax Appellate Tribunal

46
Annexure B to the Independent Auditors’ report on the 
financial statements of Nestlé India Limited for the year ended 
31 December 2021 
Report on the internal financial controls with reference to the 
aforesaid financial statements under Clause (i) of Sub-section 
3 of Section 143 of the Companies Act, 2013 (“the Act”)
(Referred to in paragraph 1(A)(f) under ‘Report on Other Legal 
and Regulatory Requirements’ section of our report of even date)
Opinion
We have audited the internal financial controls with reference to 
financial statements of Nestlé India Limited (“the Company”) as of 
31 December 2021 in conjunction with our audit of the financial 
statements of the Company for the year ended on that date.
In our opinion, the Company has, in all material respects, 
adequate internal financial controls with reference to financial 
statements and such internal financial controls were operating 
effectively as at 
31 December 2021, based on the internal financial controls 
with reference to financial statements criteria established by 
the Company considering the essential components of internal 
control stated in the Guidance Note on Audit of Internal Financial 
Controls Over Financial Reporting  issued by the Institute of 
Chartered Accountants of India (the “Guidance Note”).
Management’s Responsibility for Internal Financial Controls
The Company’s management and the Board of Directors are 
responsible for establishing and maintaining internal financial 
controls based on the internal financial controls with reference 
to financial statements criteria established by the Company 
considering the essential components of internal control 
stated in the Guidance Note. These responsibilities include the 
design, implementation and maintenance of adequate internal 
financial controls that were operating effectively for ensuring 
the orderly and efficient conduct of its business, including 
adherence to company’s policies, the safeguarding of its 
assets, the prevention and detection of frauds and errors, 
the accuracy and completeness of the accounting records, 
and the timely preparation of reliable financial information, as 
required under the Companies Act, 2013.
Auditor’s Responsibility
Our responsibility is to express an opinion on the Company’s 
internal financial controls with reference to financial 
statements based on our audit. We conducted our audit in 
accordance with the Guidance Note and the Standards on 
Auditing, prescribed under section 143(10) of the Act, to 
the extent applicable to an audit of internal financial controls 
with reference to financial statements. Those Standards 
and the Guidance Note require that we comply with ethical 
requirements and plan and perform the audit to obtain 
reasonable assurance about whether adequate internal 
financial controls with reference to financial statements 
were established and maintained and whether such controls 
operated effectively in all material respects.
Our audit involves performing procedures to obtain audit 
evidence about the adequacy of the internal financial controls 
with reference to financial statements and their operating 
effectiveness. Our audit of internal financial controls with 
reference to financial statements included obtaining an 
understanding of such internal financial controls, assessing 
the risk that a material weakness exists, and testing and 
evaluating the design and operating effectiveness of internal 
control based on the assessed risk. The procedures selected 
depend on the auditor’s judgement, including the assessment 
of the risks of material misstatement of the financial 
statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is 
sufficient and appropriate to provide a basis for our audit 
opinion on the Company’s internal financial controls with 
reference to financial statements. 
Meaning of Internal Financial controls with Reference to 
Financial Statements 
A company’s internal financial controls with reference 
to financial statements is a process designed to provide 
reasonable assurance regarding the reliability of financial 
reporting and the preparation of financial statements for 
external purposes in accordance with generally accepted 
accounting principles. A company’s internal financial 
controls with reference to financial statements include those 
policies and procedures that (1) pertain to the maintenance 
of records that, in reasonable detail, accurately and fairly 
reflect the transactions and dispositions of the assets of the 
company; (2) provide reasonable assurance that transactions 
are recorded as necessary to permit preparation of financial 
statements in accordance with generally accepted accounting 
principles, and that receipts and expenditures of the company 
are being made only in accordance with authorisations 
of management and directors of the company; and (3) 
provide reasonable assurance regarding prevention or timely 
detection of unauthorised acquisition, use, or disposition of 
the company’s assets that could have a material effect on the 
financial statements.
Inherent Limitations of Internal Financial controls with 
Reference to Financial Statements 
Because of the inherent limitations of internal financial 
controls with reference to financial statements, including 
the possibility of collusion or improper management override 
of controls, material misstatements due to error or fraud 
may occur and not be detected. Also, projections of any 
evaluation of the internal financial controls with reference to 
financial statements to future periods are subject to the risk 
that the internal financial controls with reference to financial 
statements may become inadequate because of changes in 
conditions, or that the degree of compliance with the policies 
or procedures may deteriorate.
For B S R & Co. LLP
Chartered Accountants
Firm’s Registration No. 101248W/W-100022
Place: Delhi	
Vikram Advani
Date: 17 February 2022	
Partner
Membership No. 091765
UDIN: 22091765ACXFTN7243

47
NESTLÉ INDIA LIMITED
  BALANCE SHEET AS AT 31 DECEMBER 2021 	
NOTES
 
As at  
31 December 2021
(` in million)
As at  
31 December 2020
(` in million)
 ASSETS 
 Non-current assets 
 Property, Plant and Equipment 
4 
 26,529.4 
 19,680.0 
 Capital work-in-progress 
 2,462.3 
 6,385.8 
 Right of Use Assets 
5 
 3,410.3 
 2,114.1 
 Financial Assets 
    Investments
6 
 7,107.0 
 7,408.3 
    Loans
7 
 490.9 
 465.5 
 Deferred Tax Assets (net) 
8 
 258.4 
 199.2 
 Other non-current assets 
9 
 14,453.4 
 893.6 
 54,711.7 
 37,146.5 
 Current assets 
 Inventories
10 
 15,802.2 
 14,164.8 
 Financial Assets 
    Investments
11 
 632.8 
 7,229.4 
    Trade receivables
12 
 1,652.7 
 1,649.3 
    Cash and cash equivalents
13 
 7,185.3 
 17,548.0 
    Bank Balances other than cash and cash equivalents
14 
 168.8 
 150.7 
    Loans
15 
 118.5 
 132.2 
    Other financial assets
16 
 494.0 
589.6
 Current tax assets 
 292.9 
 - 
 Other current assets 
17 
 851.6 
 386.8 
 Asset held for sale 
18 
 188.8 
 - 
 27,387.6 
 41,850.8 
 Total Assets 
 82,099.3 
 78,997.3
 EQUITY AND LIABILITIES 
 EQUITY 
 Equity Share Capital 
19 
 964.2 
 964.2 
 Other Equity 
20 
 19,880.6 
 19,229.2 
 20,844.8 
 20,193.4 
 LIABILITIES 
 Non-current liabilities 
 Financial Liabilities 
    Borrowings
21 
 274.7 
 317.2 
    Lease liabilities
 1,902.3 
 657.6 
 Provisions
22 
 32,845.4 
 32,682.7 
 Other non-current liabilities 
23 
 199.7 
 220.9 
 35,222.1 
 33,878.4

48
NOTES
 
As at  
31 December 2021
(` in million)
As at  
31 December 2020
(` in million)
 Current liabilities 
 Financial Liabilities 
   Borrowings
24 
 65.9 
 31.2 
   Trade payables
 
      Total outstanding dues of micro enterprises and small enterprises
47 
 2,598.1 
 937.6 
       Total outstanding dues of creditors other than micro enterprises and 
      small enterprises
 14,750.4 
 14,228.2 
   Lease Liabilities
 415.3 
 468.9 
   Payables for capital expenditure
      Total outstanding dues of micro enterprises and small enterprises
47 
 210.6 
 202.3 
       Total outstanding dues of creditors other than micro enterprises and  
      small enterprises
 1,337.5 
 2,722.0 
   Other financial liabilities
25 
 3,586.3 
 3,687.6 
 Provisions
26 
 1,385.4 
 1,059.6 
 Current tax liabilities 
 - 
 98.0 
 Other current liabilities 
27 
 1,682.9 
 1,490.1 
 26,032.4 
 24,925.5 
  Total Equity and liabilities 
  82,099.3  
  78,997.3 
 See accompanying notes 1 to 48 forming part of the financial statements 
As per our report of even date attached 	
 For and on behalf of the Board of Directors
For B S R & Co. LLP
Chartered Accountants
Firm’s Registration No. - 101248W/W-100022
VIKRAM ADVANI     	
SURESH NARAYANAN 	
DAVID McDANIEL	
B. MURLI
Partner	
Chairman and Managing Director	
Executive Director - 	
General Counsel & 
Membership No. - 091765	
(DIN-07246738)	
Finance & Control and CFO	
Company Secretary
	
	
(DIN-08662504)
17 February 2022	
17 February 2022
New Delhi 	
Gurugram

49
NESTLÉ INDIA LIMITED
STATEMENT OF PROFIT AND LOSS
FOR THE YEAR ENDED 31 DECEMBER 2021
NOTES
Year ended
31 December 2021
(` in million)
Year ended
31 December 2020
(` in million)
A
INCOME
Domestic Sales
139,941.5 
126,427.7 
Export Sales
 6,395.7 
 6,473.9 
Sale of products
35
 146,337.2 
 132,901.6 
Other operating revenues
28
 756.9 
 598.7 
Revenue from operations
 147,094.1 
 133,500.3 
Other Income
29
 1,201.1 
 1,458.5 
Total Income
 148,295.2 
 134,958.8 
B
EXPENSES
i
Cost of materials consumed
30
61,541.0
55,542.4
ii
Purchases of stock-in-trade
2,275.2
1,890.0
iii
Changes in inventories of finished goods, work-in-
progress and stock-in-trade
31
(627.0)
(693.3)
iv
Employee benefits expense
32
15,213.0
15,009.5
v
Finance costs (including interest cost on employee 
benefit plans)
33
2,011.9
1,641.8
vi
Depreciation and Amortisation
4,5
3,901.9
3,703.8
vii
Other expenses
34
32,482.0
29,132.8
viii Impairment loss on property, plant and equipment
4
12.2
-
ix
Net provision for contingencies
(251.7)
139.7
x
Corporate social responsibility expense
39
534.0
464.2
Total Expenses
117,092.5
106,830.9
C
PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX 
(A-B)
 31,202.7 
 28,127.9 
D
Exceptional items
3,36
 2,365.0
 - 
E
PROFIT BEFORE TAX (C-D)
28,837.7
28,127.9
F
Tax expense
Current tax
40
 7,443.9 
 7,634.2 
Deferred tax
40
 (54.8)
 7,389.1 
 (330.6)
 7,303.6 
G
PROFIT AFTER TAX (E-F)
 21,448.6 
 20,824.3

50
STATEMENT OF PROFIT AND LOSS
FOR THE YEAR ENDED 31 DECEMBER 2021
NOTES
Year ended
31 December 2021
(` in million)
Year ended
31 December 2020
(` in million)
H
OTHER COMPREHENSIVE INCOME
(a)
(i) Items that will not be reclassified to profit or loss
Re-measurement of retiral defined benefit plans
36
 (2,025.3)
 (1,236.5)
(ii) Income taxes relating to Items that will not be 
reclassified to profit or loss
 509.7 
 311.2 
 (1,515.6)
 (925.3)
(b) (i) Items that will be reclassified to profit or loss
Changes in fair value of cash flow hedges
 2.0 
 4.3 
(ii) Income taxes relating to Items that will be 
reclassified to profit or loss
 (0.5)
 (1.1)
 1.5 
 3.2 
TOTAL OTHER COMPREHENSIVE INCOME (a+b)
 (1,514.1)
 (922.1)
I
TOTAL COMPREHENSIVE INCOME (G+H)
 19,934.5 
 19,902.2 
Weighted average number of equity shares outstanding
Nos.
 96,415,716 
 96,415,716 
Basic and Diluted Earnings Per Share (Face value ` 10)
`
 222.46 
 215.98 
ADDITIONAL INFORMATION (Refer Note 2):
PROFIT FROM OPERATIONS 
[C - A(ii)+B(v)+B(x)]
 32,547.5 
 28,775.4 
	
See accompanying notes 1 to 48 forming part of the financial statements
As per our report of even date attached	
For and on behalf of the Board of Directors
For B S R & Co. LLP
Chartered Accountants
Firm’s Registration No. - 101248W/W-100022
VIKRAM ADVANI	
SURESH NARAYANAN	
DAVID McDANIEL	
B. MURLI
Partner	
Chairman and Managing Director	
Executive Director - Finance &	
General Counsel &
Membership No. - 091765	
(DIN-07246738)	
Control and CFO	
Company Secretary 
	
	
(DIN-08662504)
17 February 2022	
17 February 2022
New Delhi	
Gurugram

51
NESTLÉ INDIA LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
Year ended
31 December 2021
(` in million)
Year ended
31 December 2020 
(` in million)
A
CASH FLOWS FROM OPERATING ACTIVITIES
Profit Before Tax
 28,837.7 
 28,127.9 
Adjustments for :
Depreciation and Amortisation
 3,901.9 
 3,703.8 
Impairment loss on property, plant and equipment
 12.2 
 - 
Deficit/ (Surplus) on property, plant and equipment sold/scrapped/written off (net)
 (39.7)
 (49.0)
Other income
 (1,201.1)
 (1,458.5)
Interest on bank overdraft
 6.2 
 180.4 
Interest on Investments in Insurance plan
 (92.7)
 - 
Interest on lease liabilities
 83.5 
 85.0 
Allowance for impairment on financial assets
 9.6 
 6.0 
Unrealised exchange differences
 4.5 
 12.6 
Operating profit before working capital changes
 31,522.1 
 30,608.2 
Adjustments for working capital changes:
Decrease/(increase) in trade receivables
 (13.4)
 (416.0)
Decrease/(increase) in inventories
 (1,637.4)
 (1,334.1)
Decrease/(increase) in loans, other financial assets & other assets
 (370.3)
 (109.7)
Increase/(decrease) in trade payable 
 2,223.7 
 225.6 
Increase/(decrease) in other financial liabilities & other liabilities
 62.8 
 412.0 
Increase/(decrease) in provision for contingencies
 (95.0)
 114.3 
Increase/(decrease) in provision for employee benefits 
 (1,692.8)
 2,073.4 
Cash generated from operations
 29,999.7 
 31,573.7 
Income taxes paid (net of refunds)
 (7,286.0)
 (7,028.9)
Net cash generated from operating activities
 22,713.7 
 24,544.8 
B
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment
 (7,348.2)
 (4,783.6)
Sale of property, plant and equipment
 40.0 
 42.4 
Investment in Insurance plan (Reimbursement Rights) 
 (13,787.8)
 - 
Amount received from Insurance plan
 266.3 
 - 
Decrease/(increase) in loans to employees
 13.9 
 29.1 
Income from mutual funds
 - 
 20.4 
Loans given to related parties 
 - 
 (350.0)
Loans repaid by related parties
 - 
 350.0 
Interest received on bank deposits, investments, tax free bonds, employee loans etc.
 1,245.4 
 1,477.1 
Net cash generated from/(used in) investing activities
 (19,570.4)
 (3,214.6)
C
CASH FLOWS FROM FINANCING ACTIVITIES
Payment of deferred VAT liabilities under state government schemes
(34.1)
30.8
Interest on bank overdraft
(6.2)
(5.4)
Interest on lease liabilities
(83.5)
(85.0)
Prinicipal payment of lease liabilities
(779.4)
(601.8)
Dividends paid
(19,283.1)
(18,897.5)
Net cash used in financing activities
(20,186.3)
(19,558.9)
NET INCREASE IN CASH AND CASH EQUIVALENTS (A+B+C)
(17,043.0)
1,771.3

52
Cash and cash equivalents (Refer note 13)
 17,548.0 
 12,931.6 
Current investments (Refer note 11)
 7,229.4 
 10,074.5 
Total cash and cash equivalents at the beginning of the year (as per Ind AS 7)
 24,777.4 
 23,006.1 
Cash and cash equivalents (Refer note 13)
 7,185.3 
 17,548.0 
Current investments (Refer note 11)
 549.1 
 7,229.4 
Total cash and cash equivalents at the end of the year (as per Ind AS 7)
 7,734.4 
 24,777.4 
NET INCREASE/ (DECREASE) IN CASH AND CASH EQUIVALENTS 
 (17,043.0)
 1,771.3 
Disclosure of non-cash transactions as per Ind AS 7 :
Non cash Transaction from Financing
activities is as under :
Year ended
31 December 2020
(` in million)
 Cash flow changes 
 Non- cash 
changes 
Year ended  
31 December 2021  
(` in million)
Deferred VAT liabilities
 348.4 
 (34.1)
 26.3 
 340.6 
Deferred Government Grants
 220.9 
 - 
 (21.2)
 199.7 
Lease liabilities
 1,126.5 
 (862.9)
 2,054.0 
 2,317.6 
 1,695.8 
 (897.0)
 2,059.1 
 2,857.9 
Non cash Transaction from Financing
activities is as under :
Year ended
31 December 2019
(` in million)
 Cash flow changes 
 Non- cash 
changes 
Year ended  
31 December 2020  
(` in million)
Deferred VAT liabilities
 531.4 
 30.8 
 (213.8)
 348.4 
Deferred Government Grants
 4.3 
 - 
 216.6 
 220.9 
Lease liabilities
 1,358.0 
 (686.8)
 455.3 
 1,126.5 
 1,893.7 
 (656.0)
 458.1 
 1,695.8 
Notes:
The above Statement of Cash flows has been prepared under the “Indirect Method” as set out in Ind AS 7 on ‘Statement of Cash 
Flows’.
As per our report of even date attached 	
For and on behalf of the Board of Directors
For B S R & Co. LLP
Chartered Accountants
Firm’s Registration No. - 101248W/W-100022
VIKRAM ADVANI	
SURESH NARAYANAN	
DAVID McDANIEL	
B. MURLI
Partner 	
Chairman and Managing Director	
Executive Director - Finance &	
General Counsel &
Membership No. - 091765	
(DIN-07246738) 	
Control and CFO	
Company Secretary	
	
	
(DIN-08662504)
17 February 2022	
17 February 2022
New Delhi	
Gurugram

53
NESTLÉ INDIA LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
(` in million)
A)
EQUITY SHARE CAPITAL
Balance as at 31 December 2019
964.2
Movement during the year
-
Balance as at 31 December 2020
964.2
Movement during the year
-
Balance as at 31 December 2021
964.2
(` in million)
B)
OTHER EQUITY(1)
Reserves and Surplus
Items of Other Comprehensive Income
General 
Reserve
Retained 
Earnings
Equity Instrument 
through Other 
Comprehensive 
Income
Effective 
portion of 
Cash Flow 
Hedges
Total
Balance as at 31 December 2019
 8,374.3 
 10,173.7 
 (330.0)
 6.5 
 18,224.5 
Profit after tax
-
 20,824.3 
-
-
 20,824.3 
Other comprehensive income
-
 (925.3)
-
 3.2
 (922.1)
Total comprehensive income
-
 19,899.0 
 -
 3.2
 19,902.2 
Dividend (Refer note 48)
-
 (18,897.5)
-
-
 (18,897.5)
Total appropriations
-
 (18,897.5)
-
-
 (18,897.5)
Balance as at 31 December 2020
 8,374.3 
 11,175.2 
 (330.0)
 9.7 
 19,229.2 
Profit after tax
-
 21,448.6 
-
-
 21,448.6 
Other comprehensive income
-
 (1,515.6)
-
 1.5 
 (1,514.1)
Total comprehensive income
-
 19,933.0 
-
1.5
 19,934.5 
Dividend (Refer note 48)
-
 (19,283.1)
-
-
 (19,283.1)
Total appropriations
-
 (19,283.1)
-
-
 (19,283.1)
Balance as at 31 December 2021
 8,374.3 
 11,825.1 
(330.0)
11.2
 19,880.6 
(1) Description of purpose of each reserve within Other Equity has been disclosed under Note 20.
As per our report of even date attached	
For and on behalf of the Board of Directors
For B S R & Co. LLP
Chartered Accountants
Firm’s Registration No. - 101248W/W-100022
VIKRAM ADVANI 	
SURESH NARAYANAN	
DAVID McDANIEL	
B. MURLI
Partner	
Chairman and Managing Director	
Executive Director - Finance & Control and CFO	 General Counsel & 
Membership No. - 091765 	
(DIN-07246738)	
(DIN-08662504)	
Company Secretary
17 February 2022	
17 February 2022
Gurugram	
Gurugram

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
54
1.	
CORPORATE INFORMATION
Nestlé India Limited (“the Company”) is a company domiciled in India, with its registered office situated at 100/101, World 
Trade Centre, Barakhamba Lane, New Delhi – 110 001. The Company has been incorporated under the provisions of Indian 
Companies Act and its equity shares are listed on the BSE Limited in India. The Company is primarily involved in Food 
business which incorporates product groups viz. Milk Products and Nutrition, Prepared Dishes and Cooking Aids, Powdered 
and Liquid Beverages and Confectionery.
2.	
SIGNIFICANT ACCOUNTING POLICIES
	
BASIS OF PREPARATION AND MEASUREMENT 
	
Statement of compliance
The financial statements of the Company have been prepared in accordance with and to comply in all material aspects 
with the Indian Accounting Standards (Ind AS) as notified under Section 133 of the Companies Act, 2013 and the relevant 
provisions of the Act, as applicable. 
	
Basis of measurement
The financial statements have been prepared on accrual and going concern basis under the historical cost convention except 
for certain class of financial assets/ liabilities, share based payments and net liability for defined benefit plans that are 
measured at fair value. The accounting policies have been consistently applied by the Company unless stated otherwise.
	
Financial Year
The Company has opted the period of 1st day of January to 31st day of December, each year as its financial year for the 
purpose of preparation of financial statements under the provisions of Section 2(41) of the Companies Act, 2013, which 
the Company Law Board has allowed.
	
Functional and Presentation Currency
The financial statements have been prepared and presented in Indian Rupees (`), which is also the Company’s functional 
currency.
Rounding off
All amounts in the financial statement and accompanying notes are presented in ` million and have been rounded-off to one 
decimal place unless stated otherwise.
	
Current and Non-current Classification
The Company has ascertained its operating cycle as 12 months for the purpose of current / non-current classification of 
assets and liabilities. This is based on the nature of products and the time between acquisition of assets for processing and 
their realisation in cash and cash equivalents.
	
Measurement of Profit from Operations
For better understanding of the financial performance, the Company has chosen to present Profit from Operations as an 
additional information in the Statement of Profit and Loss.  Profit from Operations is derived from Profit before Exceptional 
Items & Tax less Other Income and adding back Finance Costs (Including Interest Cost on Employee Benefit Plans) and 
Corporate Social Responsibility Expense.
	
Use of Estimates and Judgement
The preparation of financial statements requires management to exercise judgement and make estimates and assumptions 
that affects the reported amounts of revenue, expenses, assets and liabilities. These estimates and assumptions are based 
on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results 
may differ from these estimates. These estimates and underlying assumptions are reviewed on a periodic basis. Revisions

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
55
NESTLÉ INDIA LIMITED
to accounting estimates are recognised in the period in which the results are known/materialise.
The areas involving significant estimates and judgement include determination of useful life of property, plant and equipment 
(Refer note 4), measurement of lease liabilities and right of use assets (Refer note 5), measurement of defined benefit 
obligations (Refer Note 36), recognition and measurement of provisions and contingencies (Refer note 38) and recognition 
of deferred tax assets/liabilities (Refer Note 40).
	
Approval of financial statements
The financial statements of the Company were approved for issue by the Board of Directors on 17 February 2022.
	
REVENUE RECOGNITION
Revenue from sale of goods is recognised on transfer of control of goods to the buyer. Revenue is measured at the price 
charged to the customer and are recorded net of returns (if any), trade discounts, rebates, other pricing allowances to trade/
consumer, when it is probable that the associated economic benefits will flow to the Company. 
The Performance obligation in contracts are considered as fulfilled in accordance with the terms agreed with the respective 
customers.
Revenue is presented net of Goods and Services Tax (GST).
Interest income is recognised using effective interest rate (EIR) method.
Dividend income on investments is recognized when the right to receive the payment is established.
	
GOVERNMENT GRANTS
Government grants are recognized initially at fair value as Deferred Income for interest free incentives when there is 
reasonable assurance that they will be received and the Company will comply with the conditions associated with the grant. 
These are recognized in the statement of profit & loss as a part of other operating revenues on a systematic basis.
Government grant in relation to fixed asset is treated as deferred income and is recognised in the statement of profit and 
loss on a systematic basis over the useful life of the asset.
Government grant in relation to investment outlay is recognised as income in the statement of profit & loss on fulfillment of 
the underlying attached conditions.
	
INVENTORIES 
Inventories are stated at cost or net realisable value, whichever is lower. However, raw materials, packing materials and 
other supplies held for use in the production of inventories are not written down below cost if the finished goods in which 
they will be included are expected to be sold at or above cost. The bases of determining cost for various categories of 
inventories are as follows:
Raw and packing material	
	
	
:	
First-in-first out 
Stock-in-trade (Goods purchased for resale)	
:	
Weighted average    
Stores and spare parts	 	
	
	
:	
Weighted average    	
	
	
	
Work-in-progress and finished goods	
	
:	
Material cost plus appropriate share of production 
	
	
	
	
	
	
	
	
overheads, wherever applicable       
	
EMPLOYEE BENEFITS
	
Employee benefit plans 
The Company makes contributions to Provident Fund, Employee State Insurance, National Pension System etc. for eligible 
employees and these contributions are charged to statement of profit and loss on accrual basis.
Liability for defined benefit plans i.e. gratuity and ‘unfunded pension plan’ is determined based on the actuarial valuation 
carried out by an independent actuary as at the year-end. As these liabilities are relatively long term in nature, the actuarial 
assumptions take into account the requirements of the relevant Ind AS coupled with a long-term view of the underlying

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
56
variables / trends, wherever required. 
Liability for funded defined benefit pension plan (Future ready plan) has been determined based on actuarial valuation 
carried out by an independent actuary for past period of services and frozen. The obligation so determined is invested in 
an appropriate investment product of an Insurance company and is recognized as having ‘reimbursement rights’ as per Ind 
AS 19 Employee Benefits. This investment will earn interest and the corresponding defined benefit liability will be increased 
with this interest amount. The amount recoverable from the investment product would be utilized for payment of the defined 
benefits payable under the Future Ready plan. Also refer to Note 3 of the financial statements.
Service cost and net interest cost on the defined benefit liabilities/assets are recognized in the statement of profit and 
loss as employee benefit expense and finance costs respectively. Gains and losses on remeasurement of defined benefits 
liabilities/plan assets arising from changes in actuarial assumptions and experience adjustments are recognised in the other 
comprehensive income and are included in retained earnings in the balance sheet.
Long term employee benefits such as compensated absences and long service awards are charged to statement of profit 
and loss on the basis of an actuarial valuation carried out by an independent actuary as at the year-end. Actuarial gains and 
losses are recognised in full in the statement of profit and loss during the year in which they occur.
	
Other employee benefits 
Short term employee benefits including performance incentives, are charged to statement of profit and loss on an 
undiscounted, accrual basis during the period of employment. 
	
SHARE BASED PAYMENT
Under the Nestlé Restricted Stock Unit (RSU) Plan/ Performance Share Unit (PSU) Plan of Nestlé S.A. non-tradable units 
with the right to obtain Nestlé S.A. shares or cash equivalent are granted to certain employees of the Company. Liability 
under the plan is initially measured at the fair value and charged to statement of profit and loss over the vesting period. The 
Company remeasures the outstanding units at each balance sheet date at their fair values taking into account the Nestlé 
S.A. share price and exchange rate as at the balance sheet date. The resultant gain/ (loss) on remeasurement is recognised 
in the statement of profit and loss over the vesting period.
	
PROPERTY, PLANT AND EQUIPMENT
Items of property, plant & equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if 
any. Cost is inclusive of freight, duties, taxes or levies (net of recoverable taxes) and any directly attributable cost of bringing 
the assets to their working condition for intended use. 
Property, plant and equipment which are not ready for intended use as on the date of Balance Sheet are disclosed as “Capital 
work-in-progress”.
Profit or loss on disposal/ scrapping/ write off/ retirement from active use of an item of property, plant and equipment is 
recognised in the statement of profit and loss. 
	
DEPRECIATION / AMORTISATION
The Company has assessed the useful lives of property, plant and equipment as per Schedule II to the Companies Act, 
2013. Accordingly, depreciation has been computed on useful lives based on technical evaluation of relevant class of assets 
including components thereof. Useful lives and residual values are reviewed annually. Depreciation is provided as per the 
straight line method computed basis useful lives of fixed assets as follows: 
Buildings	 	
	
	
	
:	
25 - 40 years	
	
	
Plant & Machinery	
	
	
:	
5 - 25 years	
	
Office Equipments	
	
	
:	
5 years	
Furniture and fixtures	 	
	
:	
5 years
Vehicles	 	
	
	
	
:	
5 years
Information Technology (IT) equipment	
:	
3 - 5 years
Freehold land is not depreciated.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
57
NESTLÉ INDIA LIMITED
	
IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT
At each balance sheet date, items of property, plant and equipment are reviewed to determine whether there is any indication 
of impairment. For the purpose of assessing impairment, assets are grouped at the levels for which there are separately 
identifiable cash flows (cash generating unit). If any impairment indicator exists, estimate of the recoverable amount of the 
property, plant and equipment /cash generating unit to which the asset belongs is made. An impairment loss is recognised 
whenever the carrying amount of an asset/ cash generating unit exceeds its recoverable amount. The recoverable amount is 
the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted 
to their present value based on an appropriate discount rate.
Reversal of impairment losses recognised in earlier years is recorded when there is an indication that the impairment losses 
recognised for the asset/cash generating unit no longer exist or have decreased. However, the increase in carrying amount 
of an asset due to reversal of an impairment loss is recognised to the extent it does not exceed the carrying amount that 
would have been determined (net of depreciation) had no impairment loss been recognised for that asset/cash generating 
unit in earlier years.
	
ASSET HELD FOR SALE
	
Non-current assets are classified as ‘held for sale’ when all the following criteria are met: 
	
a)	
decision has been made to sell, 
	
b)	
the assets are available for immediate sale in its present condition,  
	
c)	
the assets are being actively marketed and 
	
d)	
sale has been agreed or is expected to be concluded within 12 months of the Balance Sheet date. 
	
Financial Assets classified as Asset held for sale are subsequently measured in line with Ind AS 109 ‘Financial Instruments’.  
	
Refer accounting policy on ‘Financial Instruments’.
	
LEASES
The company’s leases mainly comprises of land, buildings, plant & machinery and vehicles. The company leases land and 
buildings primarly for offices, manufacturing facilities and warehouses. 
The Company assesses whether a contract is or contains a lease, at inception of a contract. A contract is, or contains a lease 
if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
At the date of commencement of the lease, the Company recognises a right-of-use asset (“ROU”) and a corresponding lease 
liability for all lease arrangements in which it is a lessee.
The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease liability adjusted for 
any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease 
incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses, if any. Right-of-
use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term or useful 
life of the underlying asset.
The lease liability is initially measured at the present value of the future lease payments. The lease payments are discounted 
using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates. The lease 
liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the 
carrying amount to reflect the lease payments made. A lease liability is remeasured upon the occurrence of certain events 
such as a change in the lease term or a change in an index or rate used to determine lease payments with a corresponding 
adjustment to the carrying value of Right-of-use assets.
Lease liability and Right-of-use assets is separately presented in the Balance Sheet and lease payments are classified as 
financing cash flows.
The company recognizes lease payments as operating expense on a straight line basis over the period of lease for certain 
short – term (less than or equal to two months) or low value arrangements.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
58
	
FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are initially recorded in the functional currency i.e. Indian Rupees (`) using the exchange 
rate at the date of transaction.
Monetary items (i.e. receivables, payables, loans etc.) denominated in foreign currency are reported using the closing 
exchange rate as on each balance sheet date.
The exchange difference arising on the settlement or reporting of monetary items at rates different from rates at which these 
were initially recorded / reported in previous financial statements, are recognised in the statement of profit and loss in  the 
period in which they arise.
Also refer to accounting policy on ‘Derivatives and Hedge accounting’.
	
PROVISIONS AND CONTINGENT LIABILITIES
Provisions for Contingencies/ Contingent liabilities are recognised/disclosed after evaluation of facts and legal aspects of 
the matter involved, in line with Ind AS 37 on Provisions, Contingent Liabilities and Contingent Assets and Ind AS 12 on 
Income Tax. Provisions are recognised when the Company has a present obligation (legal/constructive) and on management 
judgement as a result of a past event, for which it is probable that a cash outflow will be required and a reliable estimate 
can be made of the amount of the obligation. As the timing of outflow of resources is uncertain, being dependent upon the 
outcome of the future proceedings, these provisions are not discounted to their present value.
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but 
probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of 
which likelihood of outflow of resources is remote, no provision or disclosure is made.
Contingent assets are not recognised in the financial statements since this may result in the recognition of income that may 
never be accrued/ realised.
	
BORROWING COSTS
Borrowing costs directly attributable to acquisition or construction of items of property, plant and equipment which take 
substantial period of time to get ready for their intended use are capitalised as part of the cost of that asset. All other 
borrowing costs are charged to the statement of profit and loss in the period in which they are incurred.
	
FINANCIAL INSTRUMENTS
a)	
Recognition and Initial measurement
The Company recognises financial assets and financial liabilities when it becomes a party to the contractual provisions 
of the instrument. All financial assets and liabilities are measured at fair value on initial recognition. Transaction costs 
in relation to financial assets and financial liabilities, other than those carried at fair value through profit or loss (FVTPL), 
are added to the fair value on initial recognition. Transaction costs in relation to financial assets and financial liabilities 
which are carried at fair value through profit or loss (FVTPL), are charged to the statement of profit and loss. 
b)	
Classification and subsequent measurement of financial assets
i)	
Debt Instruments
For the purpose of subsequent measurement, financial assets in the nature of debt instruments are classified as 
follows: 
Amortised cost - Financial assets that are held within a business model whose objective is to hold the asset 
in order to collect contractual cash flows that are solely payments of principal and interest are subsequently 
measured at amortised cost less impairments, if any. Interest income calculated using effective interest rate (EIR) 
method and impairment loss, if any are recognised in the statement of profit and loss.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
59
NESTLÉ INDIA LIMITED
Fair value through other comprehensive income (FVOCI) - Financial assets that are held within a business model 
whose objective is achieved by both holding the asset in order to collect contractual cash flows that are solely 
payments of principal and interest and by selling the financial assets, are subsequently measured at fair value 
through other comprehensive income. Changes in fair value are recognized in the other comprehensive income 
(OCI) and on derecognition, cumulative gain or loss previously recognised in OCI is reclassified to the statement 
of profit and loss. Interest income calculated using EIR method and impairment loss, if any are recognised in the 
statement of profit and loss.
Fair value through profit or loss (FVTPL) - A financial asset which is not classified in any of the above categories 
are subsequently measured at fair valued through profit or loss. Changes in fair value and income on these assets 
are recognised in the statement of profit and loss.
ii)	
Equity Instruments
The Company has made investment in equity instruments that are initially measured at fair value. The company 
has elected irrevocable option to measure such investments at FVOCI. The Company makes such election on an 
instrument-by-instrument basis. Pursuant to such irrevocable option, changes in fair value are recognised in the 
OCI and is subsequently not reclassified to the statement of profit and loss. 
c)	
Classification and subsequent measurement of financial liabilities
For the purpose of subsequent measurement, financial liabilities are classified as follows:
Amortised cost - Financial liabilities are classified as financial liabilities at amortised cost by default. Interest expense 
calculated using EIR method is recognised in the statement of profit and loss.
Fair value through profit or loss (FVTPL) - Financial liabilities are classified as FVTPL if it is held for trading, or is 
designated as such on initial recognition. Changes in fair value and interest expense on these liabilities are recognised 
in the statement of profit and loss.
d)	
Derecognition of financial assets and financial liabilities
The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset 
expire, or it transfers the rights to receive the contractual cash flows including risks and rewards of ownership.
A financial liability is derecognised when the obligation under the liability is discharged or expires. 
e)	
Impairment of financial assets 
Financial assets that are carried at amortised cost and fair value through other comprehensive income (FVOCI) are 
assessed for possible impairments basis expected credit losses taking into account the past history of recovery, risk of 
default of the counterparty, existing market conditions etc. The impairment methodology applied depends on whether 
there has been a significant increase in credit risk since initial recognition. 
For Trade receivables, the Company provides for expected credit losses based on a simplified approach as per Ind 
AS 109 – Financial Instruments.  Under this approach, expected credit losses are computed basis the probability of 
defaults over the lifetime of the asset.
f)	
Derivatives and hedge accounting
Derivative instruments used by the company include forward contracts. The Company formally establishes a hedge 
relationship between such forward contracts (‘hedging instrument’) and recognized financial asset/liabilities (‘hedged 
item’) through a formal documentation at the inception of the hedge. Forward contracts are designated as hedging 
instruments against changes in fair value of recognised assets and liabilities (fair value hedges) and against highly

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
60
probable forecast transactions (cash flow hedges). The effectiveness of hedge instruments is assessed at the inception 
and on an ongoing basis.
Derivatives instruments such as forward contracts are initially measured at fair value. When a forward contract is 
designated as a cash flow hedge, the effective portion of change in the fair value of the contract is recognised in the 
other comprehensive income and accumulated in other equity under “effective portion of cash flow hedges”. Amount 
recognised in other equity is subsequently reclassified to the statement of profit and loss upon occurrence of the 
related forecasted transaction. Any ineffective portion of the change in the fair value of the contract is recognised 
immediately in the statement of profit and loss. 
Changes in fair value of forward contracts designated as fair value hedge are recognised in the statement of profit 
and loss.
g)	
Fair value measurement
Fair value of financial assets and liabilities is normally determined by references to the transaction price or market price. 
If the fair value is not reliably determinable, the company determines the fair value using valuation techniques that are 
appropriate in the circumstances and for which sufficient data are available, maximising the use of relevant observable 
inputs and minimising the use of unobservable inputs.
INCOME TAX
Income tax expense comprises of current tax and deferred tax. Income tax expense is recognised in the statement of profit 
and loss, except when it relates to items recognised in the other comprehensive income or items recognised directly in the 
equity. In such cases, the income tax expense is also recognised in the other comprehensive income or directly in the equity 
as applicable. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted 
at the end of the reporting period. Management periodically evaluates positions taken in the tax returns with respect to 
situations in which applicable tax regulations are subject to interpretation or under dispute with authorities and establishes 
provisions where appropriate.
Provision for current tax for the period comprises of
a)	
estimated tax expense which has accrued on the profit for the period 1 January 2021 to 31 December 2021 and,
b)	
the residual tax expense for the period 1 April 2020 to 31 March 2021 arising out of the finalisation of fiscal	
accounts (Assessment Year 2021-2022), under the provisions of the Indian Income tax Act, 1961.
Deferred taxes are recognised basis the balance sheet approach on temporary differences, being the difference between the 
carrying amount of assets and liabilities in the Balance Sheet and its corresponding tax base, that originate in one period 
and are capable of reversal in one or more subsequent periods. Deferred tax assets are recognised only to the extent it is 
probable that future taxable profits will be available against which such assets can be utilized.
EARNINGS PER SHARE
Basic earnings per share is computed by dividing the net profit for the period attributable to the equity shareholders by the 
weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings 
per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares 
outstanding during the period are adjusted for the effects of all dilutive potential equity shares, if any.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents include bank balances, cheques and drafts on hand including remittances in transit, demand 
deposits with banks where the original maturity is three months or less and other short term highly liquid investments that 
are readily convertible into cash and which are subject to an insignificant risk of changes in value. Bank overdrafts are 
included as a component of cash and cash equivalents for the purpose of Statement of Cash flows.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
61
NESTLÉ INDIA LIMITED
EVENTS OCCURING AFTER THE BALANCE SHEET DATE
All material events occurring after the balance sheet date upto the date of approval of financial statements by the Board of 
Directors on 17 February 2022, have been considered, disclosed and adjusted, wherever applicable, as per the requirements 
of Ind AS 10 - Events after the Reporting Period.
3.	
RECENT ACCOUNTING PRONOUNCEMENTS
(a).	 On 24 March 2021, the Ministry of Corporate Affairs (“MCA”) through a notification, amended Schedule III to the Companies 
Act, 2013 to enhance the disclosure requirements in financial statements. The amended schedule is applicable to the 
company from the financial year beginning 1 January 2022.
(b).	 The Indian parliament has passed and approved the Code on Social Security 2020. While the effective date of the code and 
complete clarity on the rules/interpretations are still awaited, as a consequence,  the impact of the same will be assessed 
and accounted for post notification of the relevant provisions. The Company has been taking cognizance of the changes and 
salary structures have been suitably designed to be compliant and accordingly, there are no material impacts foreseen on 
the financial statements of the Company. 
3. 	 Effective 1 December 2021, the Defined Benefit Pension Scheme for certain category of employees is amended and replaced 
by ‘Future Ready Plan’ which is a combination of amended Defined Benefit Pension Scheme for past period of service and a 
Defined Contribution Scheme for future service.  The defined benefit obligation for past period of service as per the ‘Future 
Ready Plan’ has been determined based on actuarial valuation carried out by an independent actuary basis the amended plan 
and has been frozen. 
	
The frozen amount as determined under the ‘Future Ready Plan’ has been invested by the Company in an appropriate 
investment product of an Insurance company. The accumulated investment balance shall be in future utilized to purchase 
pension annuities from the Insurance company for the employees as per the `Future Ready Plan’. The investment so made 
is recognized as having ‘reimbursement rights’ as per Ind AS 19 Employee Benefits.
	
Also, under the ‘Future Ready Plan’, liability towards a certain category of pensioners has been transferred to an Insurance 
company and future annuities will be paid by the insurance company.  
	
Exceptional Item as disclosed in the Statement of Profit and Loss Account comprises of the following, in aggregate :
	
(a)	
Past Service Cost i.e. the difference between the frozen amount for past service as determined under the ‘Future Ready   
	 	
Plan’ and the Defined Benefit obligation under the old plan as on 1 December 2021 ; 
	
(b)	 Settlement cost i.e. the difference between the carrying value of the defined benefit obligation towards  pensioners as  
	 	
on 1 December 2021 and the purchase price as charged by the insurance company to service the future annuities and
	
(c)	
Incidental expenses incurred for the above projects.
Also, refer Note 36

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
62
4 - Property, Plant and Equipment
(` in million)
 GROSS CARRYING VALUE
DEPRECIATION/ AMORTISATION
 NET 
CARRYING 
VALUE 
Cost as at  
31 
December 
2020 
 Additions 
 Deletions / 
Adjustments 
Cost as at  
31 
December 
2021
As at  
31 
December 
2020 
 For the 
year 
Impairment 
loss 
 On deletions 
/ Adjustments 
As at  
31 
December 
2021 
As at  
31 
December 
2021
Freehold land 
 174.1 
 1.1 
 - 
 175.2 
 - 
 - 
 - 
 - 
 - 
 175.2 
Buildings 
 9,273.6 
 2,132.8 
 39.0 
 11,367.4 
 1,947.4 
 416.7 
 - 
 38.1 
 2,326.0 
 9,041.4 
Plant and machinery    25,193.7 
 7,697.5 
 233.4 
 32,657.8 
 13,414.2  2,568.5 
 12.2 
 233.2  15,761.7 
 16,896.1 
Furniture and fixtures 
 693.7 
 17.4 
 59.7 
 651.4 
 661.2 
 21.0 
 - 
 59.2 
 623.0 
 28.4 
Office equipment 
 202.9 
 50.4 
 22.5 
 230.8 
 138.3 
 30.0 
 - 
 22.4 
 145.9 
 84.9 
IT equipment 
 892.8 
 167.0 
 85.9 
 973.9 
 592.7 
 165.0 
 - 
 85.7 
 672.0 
 301.9 
Vehicles 
 24.0 
 1.0 
 - 
 25.0 
 21.0 
 2.5 
 - 
 - 
 23.5 
 1.5 
 Total  
 36,454.8  10,067.2 
 440.5 
 46,081.5 
 16,774.8  3,203.7 
 12.2 
 438.6  19,552.1 
 26,529.4 
 GROSS CARRYING VALUE
DEPRECIATION/ AMORTISATION 
 NET 
CARRYING 
VALUE 
Cost as at  
31 
December 
2019 
 Additions   Deletions / 
adjustments 
Cost as at  
31 
December 
2020 
As at  
31 
December 
2019 
 For the 
year 
Impairment 
loss 
  On deletions 
/ adjustments 
As at  
31 
December 
2020 
As at  
31 
December 
2020
Freehold land 
 174.1 
 - 
 - 
 174.1 
 - 
 - 
 - 
 - 
 - 
 174.1 
Buildings 
 9,224.9 
 56.4 
 7.7 
 9,273.6 
 1,559.9 
 391.6 
 - 
 4.1 
 1,947.4 
 7,326.2 
Plant and machinery    23,776.7 
 1,499.1 
 82.1 
 25,193.7 
 10,996.1  2,500.0 
 - 
 81.9  13,414.2  11,779.5 
Furniture and fixtures 
 696.2 
 5.1 
 7.6 
 693.7 
 640.0 
 28.7 
 - 
 7.5 
 661.2 
 32.5 
Office equipment 
 180.8 
 22.8 
 0.7 
 202.9 
 106.8 
 32.2 
 - 
 0.7 
 138.3 
 64.6 
IT equipment 
 782.7 
 123.6 
 13.5 
 892.8 
 451.2 
 154.9 
 - 
 13.4 
 592.7 
 300.1 
Vehicles 
 25.5 
 - 
 1.5 
 24.0 
 18.8 
 3.7 
 - 
 1.5 
 21.0 
 3.0 
 Total  
 34,860.9 
 1,707.0 
 113.1 
 36,454.8 
 13,772.8  3,111.1 
 - 
 109.1  16,774.8  19,680.0

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
63
NESTLÉ INDIA LIMITED
5 - Right of Use Assets
(` in million)
 GROSS CARRYING VALUE
DEPRECIATION/ AMORTISATION
  NET 
CARRYING 
VALUE  
 Balance as at 
31 December 
2020 
 Additions 
 Deletions / 
Adjustments 
 As at 
31 December 
2021 
 Balance as at 
31 December 
2020 
 For the 
year 
 On Deletions 
/ Adjustments 
 As at 
31 December 
2021 
 As at 
31 December 
2021 
Leasehold land 
 1,240.5 
 - 
 - 
 1,240.5 
 66.6 
 13.2 
 - 
 79.8 
 1,160.7 
Buildings 
 2,129.3 
 1,824.8 
 482.3 
 3,471.8 
 1,264.5 
 638.5 
 397.3 
 1,505.7 
 1,966.1 
Plant and Machinery 
 - 
 211.1 
 - 
 211.1 
 - 
 7.0 
 - 
 7.0 
 204.1 
Vehicles 
 158.1 
 45.7 
 39.9 
 163.9 
 82.7 
 39.5 
 37.7 
 84.5 
 79.4 
 Total  
 3,527.9 
 2,081.6 
 522.2 
 5,087.3 
 1,413.8 
 698.2 
 435.0 
 1,677.0 
 3,410.3 
(` in million)
GROSS CARRYING VALUE
DEPRECIATION/ AMORTISATION
  NET 
CARRYING 
VALUE  
 Balance as at 
31 December 
2019 
 Additions 
 Deletions / 
Adjustments 
 As at 
31 December 
2020 
 Balance as at 
31 December 
2019 
 For the 
year 
  On Deletions 
/ Adjustments 
 As at 
31 December 
2020 
 As at 
31 December 
2020 
Leasehold land 
 1,240.5 
 - 
 - 
 1,240.5 
 53.4 
 13.2 
 - 
 66.6 
 1,173.9 
Buildings 
 2,371.4 
 435.8 
 677.9 
 2,129.3 
 1,335.7 
 539.1 
 610.3 
 1,264.5 
 864.8 
Vehicles 
 179.0 
 12.2 
 33.1 
 158.1 
 75.4 
 40.4 
 33.1 
 82.7 
 75.4 
 Total  
 3,790.9 
 448.0 
 711.0 
 3,527.9 
 1,464.5 
 592.7 
 643.4 
 1,413.8 
 2,114.1 
(1)	 The Company incurred ` 4.3 million (2020: ` 12.2 million) for the year ended 31 December 2021 towards expenses related 
to short term leases, leases of low value assets & variable leases.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
64
As at  
31 December 2021 
(` in million)
As at  
31 December 2020 
(` in million)
6 - NON-CURRENT INVESTMENTS
At amortised cost
Quoted
Tax free Bonds
  7,107.0  
  7,219.5  
At fair value through Other Comprehensive Income
Unquoted 
Equity shares of Sahyadri Agro and Dairy Private Limited (1)
 - 
  188.8  
(Fully paid up 1,415,050 equity shares of face value `10 each)
  7,107.0  
  7,408.3 
Market value of quoted investments
  7,797.5  
  8,054.7  
(1) Classified as Asset held for sale in 2021. (Refer Note 18)
7 - NON-CURRENT LOANS
Secured, considered good
Loans to employees
 - 
0.1
Unsecured, considered good
Security deposits
  418.4  
 383.8 
Loans to employees
  72.5  
 81.6 
 490.9 
 465.4 
 490.9 
 465.5 
8 - DEFERRED TAXES (NET)(1)
Deferred tax assets
 
Contingencies
 1,074.8 
 1,115.9 
ROU assets & lease liabilities
 34.1 
 44.3 
Employee benefits - Compensated absences and Gratuity
 416.0 
 369.3 
Allowance for credit impaired assets and Trade receivables
 25.6 
 22.2 
Other items deductible on payment
 48.0 
 31.2 
Financial Instruments
 1.5 
 0.9 
 1,600.0  
  1,583.8  
Deferred tax liabilities
 
Property, Plant and Equipment
  1,341.6  
 1,384.6 
Inventories
 - 
 - 
Financial Instruments
 - 
 - 
 1,341.6 
 1,384.6 
 
Net Deferred Tax Assets
 258.4 
 199.2 
(1) Refer note 40

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
65
NESTLÉ INDIA LIMITED
NESTLÉ INDIA LIMITED
As at  
31 December 2021 
(` in million)
As at
31 December 2020
(` in million)
9 - OTHER NON-CURRENT ASSETS
Investment in Insurance plan  (1)
 13,262.9 
 - 
Capital advances
 145.0 
339.0
Payments under protest with government authorities
 1,045.5 
554.6
 
  14,453.4  
893.6
(1) Investment has ‘Reimbursement Rights’ as defined under Ind AS 19 Employee Benefits, and is to cover the defined benefit 
obligations under the ‘Future Ready Plan’. (Refer Note 3 & Note 36).
10 - INVENTORIES
(at cost or net realisable value, whichever is lower)
Raw materials
  5,897.8  
 5,220.2 
{Includes in transit ` 445.0 million (2020: ` 428.9 million)}
Packing materials 
  823.2 
 654.1 
{Includes in transit  ` 9.0 million (2020:  ` 11.1 million)}
Work-in-progress 
  1,786.7  
 1,931.1 
Finished goods 
  5,961.9  
 5,216.8 
Stock-in-trade (goods purchased for resale)
 384.0 
 357.7 
{Includes in transit ` 115.9 million (2020: ` 119.4 million)}
Stores and spares 
 948.6 
 784.9 
{Includes in transit ` 15.3 million (2020: ` 8.5 million)}
 15,802.2 
 14,164.8 
During the year, an amount of ` 877.3 million (net of reversals) [2020: ` 744.0 million] was charged to the statement of profit 
and loss on account of obsolete, damage and slow moving inventories.
11 - CURRENT INVESTMENTS
At amortised cost
Quoted
Treasury Bills - Government Securities
 549.1 
 7,229.4
 
Current portion of Long term tax free bonds
 83.7 
 -
   
 632.8 
 7,229.4 
Considered as ‘Cash and cash equivalents’ for the purpose of ‘Statement 
of Cash Flows’ in line with the requirements of Ind AS-7
 549.1 
 7,229.4 
Market value of quoted investments
 633.9 
 7,229.4

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
66
As at  
31 December 2021
(` in million)
As at
31 December 2020
(` in million)
12 - TRADE RECEIVABLES (UNSECURED)
Trade Receivables considered good (1)
1,652.7
1,649.3
Trade Receivables with significant increase in credit risk
44.6
35.4
1,697.3
1,684.7
Less: Loss allowance (Refer Note 41)
(44.6)
(35.4)
1,652.7
1,649.3
(1) Include receivables from related parties (Refer Note 45)
13 - CASH AND CASH EQUIVALENTS
Balances with banks
on current accounts
381.9
317.8
on deposit accounts
6,796.9
17,217.4
Cheques, drafts on hand including remittances in transit	
6.5
12.8
7,185.3
17,548.0
14 - BANK BALANCES OTHER THAN CASH AND CASH EQUIVALENTS
Unpaid dividend accounts
168.8
150.7
168.8
150.7
15 -  CURRENT LOANS
Secured, considered good
Loans to employees
  - 
 0.3 
Unsecured, considered good
Security deposits
 11.8 
 20.8 
Loans to employees
 106.7 
 111.1 
 118.5 
 131.9 
Unsecured, credit impaired
Security deposits, Loans to employees
 8.9 
 8.5 
Less: Allowance for impairment
 (8.9)
-
 (8.5)
-
 118.5 
 132.2

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
67
NESTLÉ INDIA LIMITED
As at
31 December 2021
(` in million)
As at
31 December 2020
(` in million)
16 - OTHER CURRENT FINANCIAL ASSETS
Recoverable from related parties (Refer Note 45)
104.7
158.6
Derivative assets - forward contracts
21.1
48.2
Interest accrued on bank deposits/ tax free long term bonds etc.
350.4
365.8
Others
17.8
17.0
494.0
589.6
17 - OTHER CURRENT ASSETS
Investment in Insurance plan (1)
Unsecured, considered good
 351.3 
 - 
Advances given to suppliers, employees etc.
160.3
161.6
Balances with government authorities
70.8
13.2
Prepaid expenses
269.2
212.0
500.3
386.8
Unsecured, credit impaired
Advances given to suppliers, Balances with government authorities etc.
 44.3 
 35.4 
Less: Allowance for impairment
 (44.3)
-
 (35.4)
-
 851.6 
 386.8 
(1) Investment represents ‘Reimbursement Rights’ as defined under Ind AS 19 Employee Benefits to cover the defined benefit 
obligations under the ‘Future Ready Plan’. (Refer Note 3 & Note 36).
18 - ASSET HELD FOR SALE
At fair value through Other Comprehensive Income
Unquoted
Equity shares of Sahyadri Agro and Dairy Private Limited (1)
188.8 
(2021, 2020 : Fully paid up 1,415,050 equity shares of face value `10 each)
 - 
 188.8 
 - 
(1) During the year, the Board of Directors has given an in-principle approval for disinvestment of its entire minority stake of 
19.98% in Sahyadri Agro Dairy Private Limited and the process of sale has been initiated.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
68
As at 31 December 2021
As at 31 December 2020
No. of shares
Amount 
(` in million)
No. of shares
Amount 
(` in million)
19 - EQUITY SHARE CAPITAL
Authorised
Equity shares of face value ` 10 each	
100,000,000  
 1,000.0 
100,000,000
1,000.0
Issued, subscribed and fully paid up
Equity shares of face value ` 10 each
 96,415,716 
 964.2 
 96,415,716 
964.2
a)	
Reconciliation of number of shares and amount outstanding at the beginning and at the end of the year	
	
	
	
	
	
	
	
Shares outstanding as at the beginning of the year	
 96,415,716 
964.2
96,415,716
964.2
Movement during the year
-
-
-
-
Shares outstanding as at the end of the year
96,415,716
964.2
96,415,716
964.2
b)	
Rights, preferences and restrictions attached to equity shares
The Company has only one class of equity shares with face value of ` 10 each, ranking pari passu.
c)	
Equity shares held by holding companies
Nestlé S.A.
 33,051,399 
 33,051,399 
Maggi Enterprises Limited
 27,463,680 
 27,463,680 
(Ultimate holding company being Nestlé S.A.)
d)	
Shareholders holding more than 5% of equity shares
Serial
No.
Name of the shareholder
No. of
shares
% of
holding
No. of
shares
% of
holding
1
Nestlé S.A.
 33,051,399 
 34.28 
 33,051,399 
34.28
2
Maggi Enterprises Limited
 27,463,680 
 28.48 
 27,463,680 
28.48
As at
31 December 2021
(` in million)
As at
31 December 2020
(` in million)
20 - OTHER EQUITY
General reserve
8,374.3
8,374.3
Retained earnings
11,825.1
11,175.2
Items of Other Comprehensive Income
Effective portion of cash flow hedges
11.2
9.7
Equity Instruments through other comprehensive income
(330.0)
(330.0)
19,880.6
19,229.2

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
69
NESTLÉ INDIA LIMITED
Nature and description of reserve
(i)	
General Reserve - General reserve are free reserves of the company which are kept aside out of company’s profits to meet 
the future requirements as and when they arise. The Company had transferred a portion of the profit after tax (PAT) to 
general reserve pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to general reserve is not 
required under the Companies Act, 2013.
	
During the year, the Board of Directors had approved a Scheme of Arrangement between the Company and its Members 
under Section 230 of the Companies Act, 2013 (“Act”), as amended, read with other applicable provisions of the Act and 
rules thereunder, which inter alia envisages the transfer of the entire balance of ` 8,374.3 million standing to the credit of 
the General Reserves to Retained Earnings. The Scheme of Arrangement, under the relevant Section(s) of the Act, is subject 
to the approval of the members of the Company and such other class of persons as may be directed by the Hon’ble National 
Company Law Tribunal, Delhi Bench, sanction of the Hon’ble NCLT, Delhi Bench and such other approvals as are prescribed 
(including clearances/approval/comments from the BSE Limited (“BSE”) and comments from the Securities and Exchange 
Board of India (if any) via BSE). BSE had vide observation letter dated 16 December 2021 confirmed that there were “no 
adverse observation” on the said Scheme of Arrangement. The Company will be filing the application for directions with the 
Hon’ble NCLT.  Subsequent to approval of the Scheme by the members or such other persons as may be directed by the 
Hon’ble NCLT, the Company will file petition with the Hon’ble NCLT for the sanction of the Scheme of Arrangement.
(ii)	
Retained Earnings - Retained earnings are the accumulated profits earned by the Company till date, less transfer to general 
reserves, dividend and other distributions made to the shareholders	
	
(iii)	 Effective portion of cash flow hedges - The Company uses forward contracts to hedge its risks associated with foreign 
currency transactions relating to firm commitments and highly probable forecast transactions. This reserve represents the 
cumulative changes in fair value of forward contracts that are designated as Cash Flow Hedges. These will be reclassified 
to statement of profit and loss upon occurrence of the underlying forecasted transactions.	 	
	
	
(iv)	 Equity instruments through other comprehensive income - This represents the cumulative gains and losses arising on fair 
valuation of equity instruments measured at fair value through other comprehensive income under an irrevocable option.		
	
	
	
	
As at
31 December 2021
(` in million)
As at
31 December 2020
(` in million)
21 - NON-CURRENT BORROWINGS
Unsecured loans
Deferred VAT liabilities
State of Karnataka(1)
 219.5 
 204.2 
State of Himachal Pradesh(2)
 55.2 
 113.0 
 274.7 
 317.2 
(1) Interest free, repayable after 7 years from the date of disbursement in 10 equal annual installments commencing from year 2021.	
(2) Interest free, repayable after 8 years from the year of deferment commencing from year 2021.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
70
22 - NON-CURRENT PROVISIONS
Employee benefits:
As at
31 December 2021
(` in million)
As at
31 December 2020
(` in million)
Pension and gratuity (Refer note 36)
 21,653.7 
 21,808.2 
Other incentives and welfare benefits(1)
 1,872.2  23,525.9 
 1,683.0  23,491.2 
Contingencies (Refer note 38)
 9,319.5 
 9,191.5 
 32,845.4 
 32,682.7 
(1)	
Includes compensated absences, restricted stock unit plans/ performance share unit plans, long service awards and ceremonial gifts.
23 - OTHER NON-CURRENT LIABILITIES
Deferred Government Grants
199.7
220.9
199.7
220.9
24 - CURRENT BORROWINGS
Unsecured loans
Deferred VAT liabilities
State of Karnataka(1)
18.9
7.8
State of Himachal Pradesh(2)
47.0
23.4
65.9
31.2
(1) Interest free, repayable after 7 years from the date of disbursement in 10 equal annual installments commencing from year 2021.	
(2) Interest free, repayable after 8 years from the year of deferment commencing from year 2021.
25 - OTHER CURRENT FINANCIAL LIABILITIES
Customers' credit balances and payables
1,526.8
1,541.3
Employee costs and reimbursements 
1,786.8
1,926.4
Book Overdraft
-
0.9
Unpaid dividends(1)
168.8
150.7
Security deposits
81.2
61.3
Derivative liabilities - forward contracts
22.7
7.0
3,586.3
3,687.6
(1)	
No amount due and outstanding to be credited to Investor Education and Protection Fund.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
71
NESTLÉ INDIA LIMITED
28 - OTHER OPERATING REVENUES
Export incentives
443.0
366.5
Other operating income (includes scrap sales)
313.9
232.2
756.9
598.7
29 -  OTHER INCOME
Interest on bank deposits, investments and employee loans etc.(1)
694.9
930.1
Interest on tax free long term bonds (1)
506.2
508.0
Dividend on mutual funds
-
20.4
1,201.1
1,458.5
(1)	
as per effective interest rate method
As at
31 December 2021
(` in million)
As at
31 December 2020
(` in million)
26 - CURRENT PROVISIONS
Employee benefits:
Pension (Refer note 36)
 746.2 
 425.4 
Other incentives and welfare benefits(1)
 372.2  1,118.4 
 395.2 
 820.6 
Contingencies (Refer note 38)
 267.0 
 239.0 
 1,385.4 
 1,059.6 
(1)  Includes compensated absences, restricted stock unit plans/ performance share unit plans, long service awards and ceremonial gifts.
27 - OTHER CURRENT LIABILITIES
Statutory liabilities (Goods & Services tax, TDS etc.)
551.9
500.6
Advance from customers
667.1
526.5
Others
463.9
463.0
1,682.9
1,490.1

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
72
As at
31 December 2021
(` in million)
As at
31 December 2020
(` in million)
30 - COST OF MATERIALS CONSUMED
Raw materials
50,395.9
47,127.4
Packing materials
11,145.1
8,415.0
61,541.0
55,542.4
31 - CHANGES IN INVENTORIES OF FINISHED GOODS, WORK-IN-PROGRESS AND STOCK-IN-TRADE
Opening stock
Finished goods
 5,216.8 
 5,199.0 
Work-in-progress
 1,931.1 
 1,233.8 
Stock-in-trade
 357.7 
 379.5 
 7,505.6 
 6,812.3 
Closing Stock
Finished goods
 5,961.9 
 5,216.8 
Work-in-progress
 1,786.7 
 1,931.1 
Stock-in-trade
 384.0 
 357.7 
 8,132.6 
 7,505.6 
Net (increase)/ decrease in opening and closing stock
 (627.0)
 (693.3)
Year ended
31 December 2021
(` in million)
Year ended
31 December 2020
(` in million)
32 - EMPLOYEE BENEFITS EXPENSE
Salaries, wages, bonus, pension, performance incentives etc. 
13,478.7
13,148.9
Contribution to provident and other funds (Refer note - 36)
726.0
627.1
Share based payments (Refer note - 37)
252.2
423.5
Staff welfare expenses
756.1
810.0
15,213.0
15,009.5
33 -  FINANCE COSTS
Interest cost on employee benefit plans
1,495.5
 1,376.4 
Interest on finance lease
83.5
 85.0 
Other Interest
432.9
 180.4 
2,011.9
 1,641.8

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
73
NESTLÉ INDIA LIMITED
Year ended
31 December 2021
(` in million)
Year ended
31 December 2020
(` in million)
34 - OTHER EXPENSES
Finished goods handling, transport and distribution
 6,943.5 
 5,805.5 
Advertising and sales promotion
 7,644.0 
 7,635.5 
Power and fuel
 4,080.6 
 3,136.8 
General licence fees (net of taxes)
 6,545.1 
 5,935.0 
Information technology and management information systems
 1,122.6 
 1,187.8 
Maintenance and repairs
 987.4 
 957.0 
Rates and taxes
 61.8 
 32.5 
Travelling
 405.3 
 466.2 
Contract manufacturing charges
 740.6 
 482.3 
Consumption of stores and spare parts 
 621.7 
 549.3 
Training
 143.3 
 99.7 
Withholding tax on general licence fees
 655.0 
 593.7 
Laboratory (quality testing)
 265.6 
 232.6 
Market research
 372.6 
 269.7 
Milk collection and district development
 177.7 
 155.6 
Security charges
 152.6 
 145.7 
Exchange difference (net)
 1.8 
 62.5 
Deficit/ (Surplus) on fixed assets sold/scrapped/written off (net)
 (39.7)
 (49.0)
Insurance
 94.2 
 65.1 
Miscellaneous
 1,506.3 
 1,369.3 
 32,482.0 
 29,132.8 
35	 (i).	
Class-wise details of Sales of products
Year ended
31 December 2021
Year ended
31 December 2020
Product groups
Quantity 
(MT)
Amount
(` in million)
Quantity 
(MT)
Amount
(` in million)
Milk Products and Nutrition
134,669
62,686.3
138,402
61,487.8
(includes dairy whitener, condensed milk, UHT milk, yoghurt, 
maternal and infant formula, baby foods, health care nutrition)
Prepared dishes and cooking aids
327,659
45,501.3
281,392
39,108.2
(includes noodles, sauces, seasonings, pasta, cereals)
Powdered and Liquid Beverages
24,507
16,918.2
20,772
14,762.5
(includes instant coffee, instant tea, ready to drink beverage)
Confectionery
55,648
21,231.4
50,358
17,543.1
(includes bar countlines, tablets, sugar confectionery)
Sale of Products
542,483
146,337.2
490,924
132,901.6

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
74
	
(ii)	
 Reconciliation of Revenue from sale of products with the contracted price
Year ended
31 December 2021
(` in million)
Year ended
31 December 2020
(` in million)
Contracted Price
150,740.2
136,929.7
Less: Rebates, discounts, allowances etc.
4,403.0
4,028.1
Sale of products
146,337.2
132,901.6
36.	  Employee Benefit Plans
(i)	
The Company makes contributions to the Provident Fund, Employee State Insurance, National Pension System etc. for 
eligible employees. Under these plans, the Company is required to contribute a specified percentage of payroll costs. 
The Company has recognised ` 726.0 million (Previous year ` 627.1 million) as expense in the statement of profit and 
loss during the year towards contribution to these funds.
	
Out of the total contribution made for Provident Fund, ` 300.8 million (Previous year ` 260.8 million) is made to the 
Nestlé India Limited Employees Provident Fund Trust. The members of the Provident Fund Trust are entitled to the rate 
of interest declared by the Central Government under the Employees Provident Funds and Miscellaneous Provisions 
Act, 1952. The shortfall, if any, is made good by the Company. The Trustees of Nestlé India Limited Employees 
Provident Fund Trust are responsible for the overall governance of the plan and to act in accordance with the provisions 
of the trust deed and the relevant provisions prescribed under the law. Pattern of investment followed by the Trust is 
in accordance with the rules prescribed by the Government of India.
	
The total plan liabilities under the Nestlé India Limited Employees Provident Fund Trust as at 31 December 2021 as per 
the unaudited financial statements are ` 5,029.1 million (Previous year ` 4,597.1 million) as against total plan assets of 
` 4,949.9 million (Previous year ` 4,534.3 million). The funds of the Trust have been invested under various securities 
in accordance with the rules prescribed by the Government of India.
(ii)	
Pension and Gratuity Plans: The Company provides pension and gratuity to eligible employees under defined benefit 
plans. 
	
The gratuity plan provides for a lump sum payment to employees upon vesting at retirement, death while in employment 
or on termination of employment. Gratuity vesting occurs upon completion of five years of service. The Company 
makes contributions to the Nestlé India Limited Employees’ Gratuity Trust Fund. The Trustees of Nestlé India Limited 
Employees Gratuity Trust Fund are responsible for the overall governance of the plan and to act in accordance with 
the provisions of the trust deed and the relevant provisions prescribed under the law. Pattern of investment followed 
by the Gratuity Trust fund is in accordance with the rules prescribed by the Government of India. The Company aims 
to keep annual contributions to the trust relatively stable at a level such that no significant gap arises between plan 
assets and liabilities. 
	
Defined benefit pension plans are discretionary and consist of an unfunded Defined benefit pension plan and a funded 
Defined benefit Pension plan (known as ‘Future Ready plan’). The unfunded defined benefit plan exposes the Company 
to risks, such as interest rate risk, inflation risk, price risk, longevity risk etc. 
	
For funded defined benefit pension plan, the Company has made investments in appropriate Investment product of an 
Insurance company to cover the obligations. The amount and timing of the defined benefits payable under the Future 
Ready plan match with the amounts recoverable from the Investment product. The accumulated investment balance 
shall be utilised to purchase pension annuities from the Insurance company for the employees as per the `Future Ready 
Plan’. The plan exposes the Company to risks such as credit risk etc. Also, refer note 3 to the financial statements for 
description of pension plan amendment and settlement.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
75
NESTLÉ INDIA LIMITED
a)	
Movement in defined benefit obligations and Plan assets
31 December 2021
(` in million)
31 December 2020
(` in million)
Gratuity 
Scheme 
Funded 
Plan
Pension 
Scheme  
Funded 
Future 
Ready Plan(1)
 Pension 
Scheme 
Unfunded 
Plan 
Gratuity 
Scheme 
Funded 
Plan
 Pension 
Scheme 
Unfunded 
Plan 
(i) Change in defined benefit obligation (DBO): 
Present Value of obligation, as at the beginning of the year  
2,216.7
-
21,959.5
1,938.8
19,106.5
Reclassification of opening balance on change in Pension Plan 
-
14,795.2
(14,795.2)
-
-
Current service cost 
138.3
511.1
358.7
123.3
814.2
Past service cost 
-
1,768.2
-
-
-
Settlement Cost 
-
576.9
13.9
-
-
Interest cost 
143.3
991.7
478.9
127.1
1,274.2
Actuarial loss/(gain) 
314.7
948.1
757.2
138.8
1,220.5
Actual benefits paid  
(185.2)
(799.6)
(289.6)
(111.4)
(455.9)
Settlement to Insurance Company for Pensioners 
-
(5,184.6)
-
-
-
Others  
-
7.2
-
-
-
Present Value of obligation, as at the end of the year  
2,627.8
13,614.2
8,483.4
2,216.6
21,959.5
(ii) Change in plan assets: 
Plan assets, as at the beginning of the year  
 1,942.5 
-
 - 
 1,812.5 
- 
Expected return on plan assets 
 139.5 
-
 - 
 118.6 
- 
Contribution by the Company 
 434.0 
-
 - 
 - 
- 
Return on plan assets, greater/(lesser) than expected return 
 (5.3)
-
 - 
 122.8 
- 
Actual benefits paid 
 (185.2)
-
 - 
 (111.4)
- 
Plan assets, as at the end of the year   
 2,325.5 
-
 - 
 1,942.5 
- 
Net Liability recognised in the balance Sheet 
 302.3 
 13,614.2 
 8,483.4 
 274.1  21,959.5 
of which accounted as: 
Non-current provisions 
 302.3 
 13,262.9 
 8,088.5 
 274.1  21,534.1 
Current provisions 
 - 
 351.3 
 394.9 
 - 
 425.4 
(iii) Re-imbursement Rights 
Opening Balance as at the beginning of the year
 - 
 - 
 - 
 - 
 - 
Investments during the year
 - 
 13,787.8 
 - 
 - 
 - 
Return on Investments
 - 
 92.7 
 - 
 - 
 - 
Benefit Payments
 - 
 (266.3)
 - 
 - 
 - 
Investments as at the end of the year
 - 
 13,614.2 
 - 
 - 
 - 
(iv) Constitution of plan assets 
Quoted 
Corporate Bonds
 759.1 
 - 
 - 
 612.7 
- 
Government of India securities
 45.9 
 - 
 - 
 47.5 
- 
State Government/State Government guaranteed securities
 1,093.4 
 - 
 - 
 930.5 
- 
Mutual funds
 284.9 
 - 
 - 
 219.3 
-
Funding with insurance Companies
 139.2 
 - 
 - 
 131.2 
-

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
76
31 December 2021
(` in million)
31 December 2020
(` in million)
Gratuity 
Scheme 
Funded 
Plan
Pension 
Scheme  
Funded 
Future 
Ready Plan(1)
 Pension 
Scheme 
Unfunded 
Plan 
Gratuity 
Scheme 
Funded 
Plan
 Pension 
Scheme 
Unfunded 
Plan 
Unquoted 
Cash at bank and receivables 
3.0
-
-
1.3
- 
Total plan assets
 2,325.5 
-
-
 1,942.5 
- 
(v) Cost recognised in the statement of profit and loss 
Current service cost (net of recoveries) 
 136.0 
 497.2 
 358.7 
 121.8 
 787.8 
Past service cost (net of recoveries) (1)
 - 
 1,760.0 
 - 
 - 
 - 
Settlement Cost (1)
 - 
 576.9 
 13.9 
Interest cost(2)
 143.3 
 991.7 
 478.9 
 127.1 
 1,274.2 
Expected return on plan assets/re-imbursement rights 
 (139.5)
 (92.7)
 - 
 (118.6)
 - 
Net cost
 139.8 
 3,733.1 
 851.5 
 130.3 
 2,062.0 
(vi) Re-measurements recognised in other comprehensive 
income 
Actuarial loss/(gain) 
Change in financial assumptions
 166.6 
 309.3 
 373.0 
 48.0 
 1,756.2 
Change in demographic assumptions 
 (10.7)
 510.2 
 501.8 
 - 
 (87.5)
Experience adjustments 
 158.8 
 128.6 
 (117.6)
 90.8 
 (448.2)
Return on plan assets, (greater)/lesser than expected return 
 5.3 
 - 
 - 
 (122.8)
 - 
Net cost 
 320.0 
 948.1 
 757.2 
 16.0 
 1,220.5 
(1)	
 As mentioned in Note 3, Past service cost and Settlement cost is included as an Exceptional item. Exceptional item also includes `14.2 
million towards incidental expenses incurred for the project.	
	
	
	
	
	
(2) 	 Total Interest cost on employee benefit plans recognised in statement of profit and loss is ` 1,495.5 million (Previous year ` 1376.4 
million). This includes ` 1,381.7 million (Previous year ` 1,282.7 million) towards pension and gratuity and balance amount ` 113.8 million 
(Previous year ` 93.7 million) towards compensated absences and long service awards.
b)	
Key Actuarial Assumptions
31 December 2021
31 December 2020
 Gratuity 
Scheme 
Funded 
Plan 
Pension 
Scheme  
Future 
Ready Plan 
(30 November 
2021)
 Pension 
Scheme 
Unfunded 
Plan 
Gratuity 
Scheme 
Funded 
Plan
 Pension 
Scheme 
Unfunded 
Plan 
Discount Rates (%)
 6.75 
6.75
 6.75 
 6.75 
 6.75 
Expected rate of salary increases (%) (1)
First 5 years
6.2 to 13.7
7.7 to 11.3 7.7 to 11.3 
Beyond five years
 3.6  to 9.3 
5.5
6.5 
Expected rate of Pension increases (%)
-
2.50 3.25 to 3.50
-
3.25

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
77
NESTLÉ INDIA LIMITED
31 December 2021
31 December 2020
 Gratuity Scheme 
Funded Plan 
Pension Scheme  
Future Ready Plan 
(30 November 2021)
 Pension 
Scheme 
Unfunded Plan 
Gratuity 
Scheme 
Funded Plan
 Pension 
Scheme 
Unfunded 
Plan 
Mortality assumptions
in service
Indian Assured Lives 
Mortality (modified 
2006-08) Ultimate 
rates
No allowance
Indian Assured 
Lives Mortality 
(modified 2006-
08) Ultimate rates
Indian Assured Lives 
Mortality (modified 2006-
08) Ultimate rates
in retirement (for pension scheme)
Indian Individual  
Annuitant’s 
Mortality Table 
(2012-15)
Indian Individual 
Annuitant’s 
Mortality Table 
(2012-15)
Mortality for annuitants - 
LIC (1996-98)  Ultimate 
rates with flat 10% 
mortality improvement 
and additional 0.25% 
p.a. future mortality 
improvement 
(1) Refers to range of average salary escalation rates for different category of employees.
The estimates of future salary increases considered in actuarial valuation, take account of inflation, performance, promotion and 
other relevant factors such as demand and supply in the employment market.
As defined benefits obligations are of relatively long term in nature, the actuarial assumptions take in account the requirements 
of the relevant Ind AS coupled with a long term view of the underlying variables / trends, wherever required.
c)	
Sensitivity Analysis
Sensitivity of the defined benefit obligation to changes in key actuarial assumptions
31 December 2021
(` in million)
31 December 2020
(` in million)
Gratuity 
Scheme 
Funded Plan
Pension 
Scheme 
Unfunded Plan
Gratuity 
Scheme 
Funded Plan
Pension 
Scheme 
Unfunded Plan
Present Value of obligation - Reported
2,627.8
8,483.4
 2,216.6 
 21,959.5 
Discount rates
Increase of 50 basis point
 2,488.3 
 7,645.3 
 2,106.6 
 20,041.5 
Decrease of 50 basis point
 2,780.7 
 9,456.0 
 2,336.8 
 24,151.2 
Expected rate of salary increases
Increase of 50 basis point
 2,746.1 
 9,081.1 
 2,308.0 
 23,124.6 
Decrease of 50 basis point
 2,517.6 
 7,944.1 
 2,131.0 
 20,918.6 
Expected rate of Pension increases
Increase of 50 basis point
-
 8,920.3 
-
 23,055.3 
Decrease of 50 basis point
-
 8,083.5 
-
 20,954.8 
Life expectancy
Increase by 1 year
-
 8,626.8 
-
 22,352.7 
Decrease by 1 year
-
 8,338.4 
-
 21,561.2

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
78
Sensitivities are calculated using the same actuarial method as applied for the calculation of present value of the defined benefit 
obligation. Sensitivity calculations are based on change in the respective assumption while keeping other assumptions constant.
31 December 2021
(` in million)
31 December 2020
(` in million)
Gratuity 
Scheme 
Funded Plan
Pension 
Scheme 
Unfunded Plan
Gratuity 
Scheme 
Funded Plan
Pension 
Scheme 
Unfunded Plan
d) Weighted average duration of the defined 
benefit obligation
 12 years 
22.7 years
12 years
19.8 years
e) Expected contribution to the Trust
302.3
-
 300.0 
-
37. Restricted Stock Unit (RSU)/ Performance Share Unit (PSU) Plan
The Company participates in the Nestlé Restricted Stock Unit (RSU)/ Performance Share Unit (PSU) Plan of Nestlé S.A., 
whereby select employees are granted non-tradable units with the right to obtain Nestlé S.A. shares or cash equivalent. 
Restricted Stock Units (RSU)/ Performance Share Units (PSU) granted to employees vest, subject to certain conditions, after 
completion of three years. Upon vesting Nestlé S.A. determines, whether shares, free of charge or cash equivalent to the 
value of shares, is to be transferred to the employee.  The Company has to pay Nestlé S.A. an amount equivalent to the 
value of Nestlé S.A. shares on the date of vesting, delivered to the employee. 
The details are as under:- 
31 December 2021
(` in million)
31 December 2020
(` in million)
Outstanding, non-vested RSU/ PSU grants as at year end
             407.8 
             393.5 
RSU/ PSU grants vested during the year
             237.9 
             412.5 
Recognised in statement of profit and loss
             252.2 
             423.5 
The details on number of grants is as under:-
31 December 2021
31 December 2020
Outstanding, non-vested RSU/ PSU grants as at beginning of the year
70,919
77,269 
RSU/ PSU grants granted during the year
22,335
45,299 
RSU/ PSU grants vested/reversed during the year
31,524
51,649
Outstanding, non-vested RSU/ PSU grants as at year end
61,730
70,919 
Weighted average share price used for valuation of grants at year end (In `)
10,427
8,631
38.	 Net provision for contingencies
The Company has created a contingency provision of ` 905.8 million (Previous year ` 1,088.9 million) for various contingencies 
resulting mainly from matters, which are under litigation / related disputes and other uncertainties requiring management 
judgement. The Company has also reversed/utilised contingency provision of ` 749.8 million (Previous year ` 580.2 million) 
due to the settlement of certain litigations and settlement of obligations for which provision is no longer required.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
79
NESTLÉ INDIA LIMITED
The movement of provisions is given below:
31 December 2021
(` in million)
31 December 2020
(` in million)
Description
Provisions for contingencies
Provisions for contingencies
Litigations and related 
disputes
Others
Total
Litigations and related 
disputes
Others
Total
Indirect
Taxes
Other 
Litigations
Indirect
Taxes
Other 
Litigations
Opening balance
3,835.9
4,332.2
1,262.4
9,430.5
3,976.6
3,963.2
982.0
8,921.8
New provisions
243.9
433.9
228.0
905.8
403.8
386.4
298.7
1,088.9
Reversals/Utilisation
during the year
(296.0)
-
(453.8)
(749.8)
(544.5)
(17.4)
(18.3)
(580.2)
Closing balance
3,783.8
4,766.1
1,036.6
9,586.5
3,835.9
4,332.2
1,262.4
9,430.5
Notes:
(i)	
Litigations and related disputes - represents estimates made mainly for probable claims arising out of litigations / 
disputes pending with authorities under various statutes (i.e. Excise Duty, Service Tax, Entry tax, Income Tax, Value 
Added Tax, Sales and Purchase Tax, Goods and Service Tax etc.). This includes positions taken on matters under 
dispute involving judgements and assumptions to determine the possible outcome. The probability and the timing of 
the outflow with regard to these matters depend on the ultimate settlement /conclusion with the relevant authorities.
(ii)	
Others - includes estimates made for products sold by the Company which are covered under free replacement 
warranty on crossing the best before date for consumption and other uncertainties requiring management judgement. 
The timing and probability of outflow with regard to these matters will depend on the external environment and the 
consequent decision/ conclusion by the Management.
39.	 Corporate Social Responsibility Expense
31 December 2021
(` in million)
31 December 2020 
(` in million)
Prescribed CSR expenditure as per Section 135 of the Companies Act, 2013
527.5
463.0
(a)	
Total amount planned to be spent during the year
529.1
464.0
(b)	
Actual spends during the year
534.0
464.2
(c)	
Paid in Cash(1)
	
- Pertaining to current year
534.0
460.2
	
- Pertaining to previous year
4.0
25.6
(d)	
Expenditure incurred during current year and remaining unpaid
0.0
4.0
(e)	
The Company does not wish to carry forward any excess amount  
        spent during the current year
(1)	 Includes amount paid for acquisition/ construction of assets - 2021: Nil, 2020: Nil

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
80
40.	 (a)	
Tax expense
Year ended
31 December 2021
(` in million)
Year ended
31 December 2020
(` in million)
i	
Recognised in the statement of profit and loss
Current Tax
 7,443.9 
 7,634.2 
Deferred Tax
 (54.8)
 (330.6)
 7,389.1 
 7,303.6 
ii	
Recognised in other comprehensive income
Current Tax
 (504.8)
 (307.1)
Deferred Tax
 (4.4)
 (3.0)
 (509.2)
 (310.1)
Of which:
on re-measurement of retiral defined benefit plans
 (509.7)
 (311.2)
on changes in fair value of cash flow hedges
 0.5 
 1.1 
Total Taxes
Current Tax
 6,939.1 
 7,327.1 
Deferred Tax
 (59.2)
 (333.6)
 6,879.9 
 6,993.5 
iii	
Reconciliation of tax expense recognised in the statement of profit and loss with Profit before tax (PBT) multiplied by 
the Statutory tax rate:
Year ended
31 December 2021
(` in million)
Year ended
31 December 2020
(` in million)
Profit before Tax
 28,837.7 
 28,127.9 
Statutory Income tax rate
25.17%
25.17%
Tax expense @ Statutory Income tax rate
 7,257.9 
 7,079.2 
Tax effect of permanent adjustments made for computing taxable income
Non-deductible expenses
 197.0 
 138.0 
Provision for contingencies
 251.0 
 219.4 
Income exempt from tax
 (127.4)
 (133.0)
Adjustment of current tax for prior periods
 (189.4)
 - 
Tax expense recognised in the statement of profit and loss
 7,389.1 
 7,303.6

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
81
NESTLÉ INDIA LIMITED
(b)	 Movement in deferred taxes
As at 31 December 2021
(` in million)
Particulars
Opening 
balance
Recognised in 
the statement 
of profit and 
loss
Recognised 
in other 
comprehensive 
income
Closing 
balance
Deferred tax assets
Contingencies
 1,115.9 
(41.1)
-
 1,074.8 
Employee benefits- compensated absences and gratuity 
 369.3 
41.8 
4.9 
 416.0 
ROU assets & lease liabilities
 44.3 
(10.2)
-
 34.1 
Allowance for credit impaired assets and Trade receivables
 22.2 
3.4 
-
 25.6 
Other items deductible on payment basis
 31.2 
16.8 
-
 48.0 
Financial Instruments
 0.9 
 1.1 
(0.5)
 1.5 
Sub-Total (A)
1,583.8 
11.8 
4.4 
1,600.0 
Deferred tax liabilities
Property, plant and equipment
 1,384.6 
 (43.0)
-
 1,341.6 
Sub-Total (B)
 1,384.6 
(43.0)
 - 
 1,341.6 
Net Deferred Tax Assets (A-B)
 199.2 
 54.8 
 4.4 
 258.4 
As at 31 December 2020
(` in million)
Particulars
Opening 
balance
Recognised in 
the statement 
of profit and 
loss
Recognised 
in other 
comprehensive 
income
Closing 
balance
Deferred tax liabilities
Property, plant and equipment
 1,579.2 
 (194.6)
-
 1,384.6 
Sub-Total (A)
 1,579.2 
(194.6)
 - 
 1,384.6 
Deferred tax assets
Contingencies
 1,063.0 
52.9 
-
 1,115.9 
Employee benefits- compensated absences and gratuity 
 289.2 
76.1 
4.0 
 369.3 
ROU assets & lease liabilities
 45.1 
(0.8)
-
 44.3 
Allowance for credit impaired assets and Trade receivables
 20.0 
2.2 
-
 22.2 
Other items deductible on payment basis
 25.6 
5.6 
-
 31.2 
Financial Instruments
 1.9 
 - 
(1.0)
 0.9 
Sub-Total (B)
1,444.8 
136.1 
3.0 
1,583.9 
Net Deferred Tax Liabilities/(Assets) (A-B)
 134.4 
(330.6)
 (3.0)
 (199.2)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
82
41.	 Financial Instruments
(a)	
Financial instruments by category
As at  
31 December 2021
As at  
31 December 2020
Note
(` in million)
(` in million)
Financial assets
i
Measured at Amortised Cost 
 Investments 
 Long Term Tax free Bonds 
6 
 7,107.0 
 7,219.5 
 Treasury Bills - Government Securities 
11 
 549.1 
 7,229.4 
 Long Term Tax free Bonds - Current portion 
11 
 83.7 
 - 
Trade receivables 
12 
 1,652.7 
 1,649.3 
Cash and cash equivalents 
13 
 7,185.3 
 17,548.0 
Bank Balances other than cash and cash equivalents 
14 
 168.8 
 150.7 
Loans
7,15
 609.4 
 597.7 
Other financial assets 
16 
 472.9 
 541.4 
 17,828.9 
 34,936.0 
ii
Measured at Fair Value through Other Comprehensive 
Income 
Investment in Equity Shares
6,18
 188.8 
 188.8 
 188.8 
 188.8 
iii
Measured at Fair Value through Profit & Loss 
Derivative assets - forward contracts 
16 
 21.1 
 48.2 
 21.1 
 48.2 
 Total Financial assets (i+ii+iii) 
 18,038.8 
 35,173.0 
Financial Liabilities 
i
Measured at Amortised Cost 
Borrowings 
21,24
 340.6 
 348.4 
Lease liabilities 
 2,317.6 
 1,126.5 
Trade payables 
 17,348.5 
 15,165.8 
Payables for capital expenditure 
 1,548.1 
 2,924.3 
Others financial liabilities 
25 
 3,563.6 
 3,680.6 
 25,118.4 
 23,245.6 
ii
Measured at Fair Value through Profit & Loss 
Derivative liabilities - forward contracts 
25
 22.7 
 7.0 
 22.7 
 7.0 
 Total Financial liabilities (i+ii) 
 25,141.1 
 23,252.6

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
83
NESTLÉ INDIA LIMITED
(b)	
 Fair value hierarchy
As at  
31 December 2021
As at  
31 December 2020
(` in million)
(` in million)
(i)
Financial assets/liabilities at amortised cost 
The carrying amount of financial assets and financial liabilities 
measured at amortised cost are a reasonable approximation of 
their fair values except Investments for which the fair value are 
as follows:
Fair value of Investments measured at amortised cost (Level 1)
 8,431.4 
 15,284.1 
(ii)
Financial assets at fair value through other comprehensive income 
Investment in Equity Shares (Level 3) 
 188.8 
 188.8 
(iii)
Financial assets at fair value through profit & loss  
Derivative assets - forward contracts (Level 2) 
 21.1 
 48.2 
(iv)
Financial liabilities at fair value through profit & loss 
Derivative liabilities - forward contracts (Level 2) 
 22.7 
 7.0 
The Company determines the fair value of its financial instruments on the basis of the following hierarchy:
Level 1: The fair value of financial instruments that are quoted in active markets are determined on the basis of 
quoted price for identical assets or liabilities. 
Level 2: The fair value of financial instruments that are not traded in an active market are determined using 
valuation techniques based on observable market data.
Level 3: The fair value of financial instruments that are measured on the basis of entity specific valuations using 
inputs that are not based on observable market data (unobservable inputs). Fair value of investment in unquoted 
equity shares is determined using discounted cash flow technique. 
There are no transfers between different fair value hierarchy levels in 2020 and 2021.
(c)	
Financial Risk Management
In the course of its business, the Company is exposed to a number of financial risks: liquidity risk, credit risk, market 
risk. This note presents the Company’s objectives, policies and processes for managing its financial risk.
(i)	
Liquidity risk
Liquidity risk refers to risk that the Company may encounter difficulties in meeting its obligations associated with 
financial liabilities that are settled in cash or other financial assets. The Company regularly monitors the rolling 
forecasts to ensure that sufficient liquidity is maintained on an ongoing basis to meet operational needs. The 
Company manages the liquidity risk by planning the investments in a manner such that the desired quantum of 
funds could be made available to meet any of the business requirements within a reasonable period of time. In 
addition, the Company also maintains flexibility in arranging the funds by maintaining committed credit lines with 
various banks to meet the obligations.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
84
Maturities of financial liabilities:
The following table shows the maturity analysis of the Company’s financial liabilities based on contractually 
agreed undiscounted cash flows along with its carrying value as at the Balance Sheet date.
(` in million)
Undiscounted Amount
Carrying 
amount
Less than
1 year
Beyond
1 year
Total
As at 31 December 2021 
Borrowings 
 340.6 
 71.2 
 456.1 
 527.3 
Lease liabilities 
 2,317.6 
 577.5 
 2,569.6 
 3,147.1 
Trade payables 
 17,348.5 
 17,348.5 
 - 
 17,348.5 
Payables for capital expenditure 
 1,548.1 
 1,548.1 
 - 
 1,548.1 
Others financial liabilities 
 3,563.6 
 3,563.6 
 - 
 3,563.6 
Derivative liabilities - forward contracts 
 22.7 
 22.7 
 - 
 22.7 
 25,141.1 
 23,131.6 
 3,025.7 
 26,157.3 
As at 31 December 2020 
Borrowings 
 348.4 
 31.2 
 531.0 
 562.2 
Lease liabilities 
 1,126.5 
 498.7 
 772.1 
 1,270.8 
Trade payables 
 15,165.8 
 15,165.8 
 - 
 15,165.8 
Payables for capital expenditure 
 2,924.3 
 2,924.3 
 - 
 2,924.3 
Others financial liabilities 
 3,680.6 
 3,680.6 
 - 
 3,680.6 
Derivative liabilities - forward contracts 
 7.0 
 7.0 
 - 
 7.0 
 23,252.6 
 22,307.6 
 1,303.1 
 23,610.7 
(ii)	
Credit risk
Credit risk refers to risk of financial loss to the Company if a customer or a counter-party fails to meet its 
contractual obligations. The Company has following categories of financial assets that are subject to credit risk 
evaluation:
Investments
The Company has made investments in tax free long term bonds, treasury bills, deposit with banks etc. Funds 
are invested in accordance with the Company’s established Investment policy that includes parameters of safety, 
liquidity and post tax returns. Company avoids the concentration of credit risk by spreading them over several 
counterparties with good credit rating profile and sound financial position. The Company’s exposure and credit 
ratings of its counterparties are monitored on an ongoing basis. Based on historical experience and credit profiles 
of counterparties, the company does not expect any significant risk of default.
Trade receivables
Credit risk arising from trade receivables is managed in accordance with the Company’s established policy with 
regard to credit limits, control and approval procedures. The Company provides for expected credit losses on 
trade receivables based on a simplified approach as per Ind AS 109.  Under this approach, expected credit losses 
are computed basis the probability of defaults over the lifetime of the asset. This allowance is measured taking 
into account credit profile of the customer, geographical spread, trade channels, past experience of defaults, 
estimates for future uncertainties etc.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
85
NESTLÉ INDIA LIMITED
Movement in expected credit loss allowance on trade receivables: 
31 December 2021
(` in million)
31 December 2020
(` in million)
Balance as at the beginning of the year
 35.4 
 33.9 
Movement during the year
 9.2 
 1.5 
Balance as at the end of the year
44.6
 35.4 
Other financial assets
Other financial assets include employee loans, security deposits etc. Based on historical experience and credit 
profiles of counterparties, the Company does not expect any significant risk of default.
The Company’s maximum exposure to credit risk for each of the above categories of financial assets is their 
carrying values as at the reporting dates.
(iii)	 Market Risk
Interest rate risk
Interest rate risk refers to risk that the fair value of future cash flows of a financial instrument may fluctuate 
because of changes in market interest rates. The Company is not exposed to any significant interest rate risk as 
its investments are primarily in fixed rate instruments. Also, there are no significant borrowings as at the balance 
sheet date.
Price risk
Price risk refers to risk that the fair value of a financial instrument may fluctuate because of the change in the 
market price. The Company is exposed to the price risk mainly from investment in equity instruments. However, 
equity investments are not significant as at the balance sheet date.
Foreign currency risk
Foreign currency risk refers to risk that the fair value of future cash flows of an exposure may fluctuate due to 
change in the foreign exchange rates. The Company is exposed to foreign currency risk arising out of transactions 
in foreign currency. Foreign exchange risks are managed in accordance with Company’s established policy for 
foreign exchange management. The Company enters into forward contracts as per the hedging policy to hedge 
against its foreign currency exposures.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
86
The foreign currency exposure of the Company as at the year end basis the closing exchange rates is as under:
(` in million)
As at  
31 December 2021
As at  
31 December 2020
Currency
Hedged(1)
Unhedged
Hedged(1)
Unhedged
Against exports
USD
1,470.1
-
1,586.5
-
EUR
-
2.2
-
2.2
CHF
-
18.8
-
28.2
Against imports
USD
486.3
347.1
477.1
239.1
(Including Capital
EUR
643.0
282.7
309.2
2,374.7
imports)
AUD
167.1
4.0
174.6
47.4
CHF
-
42.0
-
99.9
GBP
-
125.1
-
694.9
SGD
-
20.4
-
25.5
JPY
-
21.7
-
106.4
(1)	
All the forward contracts are for hedging foreign currency exposures relating to the underlying transactions and firm 
commitments or highly probable forecast transactions.
Sensitivity analysis :
The impact of strengthening/weakening of foreign currencies on the outstanding exposure remaining unhedged 
at the year end is as under :
(` in million)
As at  
31 December 2021
As at  
31 December 2020
Currency
Gain on 
appreciation
Loss on 
depreciation
Gain on 
appreciation
Loss on 
depreciation
USD
17.4
(17.4)
 12.0 
 (12.0)
EUR
14.0
(14.0)
 118.6 
 (118.6)
AUD
0.2
(0.2)
 2.4 
 (2.4)
5% appreciation/depreciation
CHF
1.2
(1.2)
 3.6 
 (3.6)
in Indian Rupees
GBP
6.3
(6.3)
 34.7 
 (34.7)
SGD
1.0
(1.0)
 1.3 
 (1.3)
JPY
1.1
(1.1)
 5.3 
 (5.3)
(d)	
Derivative financial instruments
Derivative instruments used by the Company include forward contracts. All the forward contracts entered into are for 
the purpose of hedging foreign currency exposures relating to the underlying transactions and firm commitments or 
highly probable forecast transactions.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
87
NESTLÉ INDIA LIMITED
31 December 2021 
(` in million)
31 December 2020
(` in million)
(i)      Fair value of cash flow hedges
 Derivative assets
 21.1 
 48.2 
 Derivative liabilities
 22.7 
 7.0 
(ii)     Notional value of cash flow hedges
 2,840.3 
 2,596.8 
(iii)	 Movement in respect of designated cash flow hedges is 
summarised below:
Balance as at the beginning of the year 
 9.7 
 6.5 
Add : Gains/ (loss) recognised in other comprehensive income
 (21.9)
 82.5 
Less: Gains/ (loss) reclassified to statement of profit and loss
 (23.9)
 78.2 
Less: Net deferred taxes on the movement
 0.5 
 1.1 
Balance as at the end of the year 
 11.2 
 9.7 
42.	 Capital Management
The Company’s capital management objective is to ensure that a sound capital base is maintained to support long term 
business growth and optimise shareholders value. Capital includes equity share capital and other equity reserves.
The Company’s operations are funded primarily through internal accruals. Return to shareholders through dividend is 
monitored as per the laid down dividend distribution policy.
43.	 Auditors Remuneration(1)
{included under Miscellaneous expense (Refer Note-34)}
Year ended
31 December 2021
(` in million)
Year ended
31 December 2020
(` in million)
(i)	
Auditors’ remuneration and expenses in respect of:
a)    Statutory audit
 13.0 
 13.0 
b)    Audit of accounts for fiscal year and tax audit
 3.6 
 3.6 
c)    Limited review of quarterly un-audited results
 3.0 
 2.7 
d)    Certifications 
 1.5 
 0.5 
e)    Other assurance services
 2.4 
 - 
f)     Audit of employee trust accounts 
 0.0 
 0.4 
g)    Out of pocket expenses for statutory audit and other matters
 2.0 
 0.9 
 25.5 
 21.1 
(ii)	
Cost auditors’ remuneration and expenses in respect of:
a)    Cost audit fees (including out of pocket expenses)
 0.2 
 0.2 
b)    Certifications
 - 
 0.1 
 0.2 
 0.3 
(1)	
excluding applicable taxes

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
88
44.	 Contingent liabilities and commitments
As at
31 December 2021 
(` in million)
As at
31 December 2020
(` in million)
(i)	
Contingent liabilities 
Claims against the Company not acknowledged as debts:
Indirect Taxes
11.7
11.7
(ii)	
Capital Commitments
Capital expenditure commitments remaining to be executed and 
not provided for [net of advances ` 145.0 million (previous year 
` 339.0 million)]
 1,860.9 
 3,142.3 
(iii)	 The Hon’ble Supreme court of India in February 2019 passed a judgement relating to the definition of wages under the 
Provident Fund Act, 1952. However, there are interpretative aspects related to the judgement and the effective date 
from which it applies.The Company will keep evaluating its position based on further developments in this matter.
45.	 Related party disclosures under Ind AS 24
(a)	
Related party and their relationship	
(i)	
Holding Companies	
Nestlé S.A (Ultimate holding Company)	
Maggi Enterprises Limited	
(ii)	
Fellow subsidiaries with whom the Company had transactions
Cereal Partners (Malaysia)	
Nestlé Chile S.A.
Cereal Partners Poland	
PT Nestlé Indonesia
CPW S.A.	
Purina Petcare India Pvt. Ltd.
Néstéc York Ltd. 	
Sanpéllégrino S.p.A.
Nestlé (China) Ltd.	
SMA Nutrition India Private Ltd.
Nestlé (South Africa) (Pty) Ltd.	
Société des Produits Nestlé S.A. (SPN)
Nestlé (Thai) Ltd.	
Nestlé Nederland B.V.
Nestlé Adriatic S DOO	
Nestlé Nigeria  Plc
Nestlé Asean (Malaysia) Sdn. Bhd.	
Nestlé Operational Services Worldwide S.A.
Nestlé Australia Ltd.	
Nestlé Philippines, Inc.
Nestlé Bangladesh Ltd.	
Nestlé Products (Mauritius) Ltd.
Nestlé Bulgaria AD	
Nestlé Products Sdn Bhd
Nestlé Business Services AOA, Inc.	
Nestlé R&D Centre (Pte) Ltd.
Nestlé Canada Inc	
Nestlé R&D Centre India Private Ltd.
Nestlé Central and West Africa	
Nestlé Regional Service Centre
Nestlé Cote D’Ivoire	
Nestlé ROH (Thailand) Ltd.
Nestlé Deutschland AG	
Nestlé Singapore (Pte) Ltd.
Nestlé Dongguan Ltd.	
Nestlé South Africa Pty Ltd.
Nestlé Dubai Manufacturing LLC	
Nestlé Suisse S.A.
Nestlé Egypt S.A.E.	
Nestlé Taiwan Ltd.
Nestlé Enterprises S.A.	
Nestlé Turkiye Gida Sanayi A.S.
Nestlé France S.A.S.	
Nestlé UK Ltd.
Nestlé Hungaria Kft.	
Nestlé USA Inc
Nestlé Japan Ltd.	
Nestlé Vietnam Ltd.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
89
NESTLÉ INDIA LIMITED
Nestlé Kenya Ltd.	
Nestlé Waters Ethiopia
Nestlé Korea Ltd	
Nestlé Waters Management & Technology
Nestlé Korea Yuhan Chaegi	
Nestlé Waters S.A.S
Nestlé Lanka PLC	
Nestrade S.A.
Nestlé Manufacturing (Malaysia) Sdn Bhd	
Nestlé Middle East Manufacturing
Nestlé Middle East FZE	
Lotte-Nestle Korea Co Ltd
Quality Coffee Products Ltd.	
Nestlé Intérnational Travél Rétail
PJSC “Lviv Confectionery Factory svitoch”	
Wyeth Nutritionals Ireland Limited
Sofinol S.A.	
Wyeth Nutritionals (Singapore) Pte. Ltd.
Nestlé Rossiya LLC	
(iii)	 Entities controlled by Key Management Personnel with whom the Company had transactions
Piramal Glass Private Limited
Piramal Enterprises Limited
(iv)	 Key Management Personnel
Executive Directors
Suresh Narayanan, Chairman and Managing Director 
Shobinder Duggal, Executive Director - Finance & Control and CFO (Executive Director- Finance & Control upto 
31 December 2019 and CFO upto 29 February 2020)
David Steven McDaniel, Executive Director - Finance & Control and CFO (w.e.f 1 March 2020)
Martin Roemkens, Executive Director-Technical (upto 31 October 2020)
Matthias Christoph Lohner, Executive Director-Technical (w.e.f 1 November 2020)
Independent non-Executive Directors
Rama Bijapurkar 
Rakesh Mohan (upto 30 June 2020)
R. V. Kanoria 
Swati A. Piramal
Roopa Kudva
P R Ramesh (w.e.f. 1 July 2020)
(v)	
Employees benefit trusts where control exists
Nestlé India Limited Employees Provident Fund Trust
 Nestlé India Limited Employees Gratuity Trust
(b)	
Nature of transactions
The transactions with the related parties have been entered in the ordinary course of business and are at arm’s  
length.
Particulars
Year ended 
31 December 2021 
(` in million)
Year ended
31 December 2020
(` in million)
Holding companies:
(a)	
Dividends
- Nestlé S.A
 6,610.3 
 6,478.1 
- Maggi Enterprises Limited
 5,492.7 
 5,382.9 
(b)	
Expenses incurred
- Nestlé S.A
237.9
 412.5

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
90
Particulars
Year ended 
31 December 2021 
(` in million)
Year ended
31 December 2020
(` in million)
Fellow subsidiaries:
(a)	
Sale of finished and other goods
- Nestlé Enterprises SA
 2,239.9 
 - 
- Nestrade S.A.
 1,383.1 
 1,918.4 
- Nestlé Bangladesh Limited
 75.7 
 1,107.9 
- Others
 10.5 
 928.0 
(b)	
Purchase of property, plant and equipment
- Nestec York Ltd
 73.4 
 - 
- Nestrade S.A.
 - 
 274.2 
- Others
 - 
 0.3 
(c)	
Purchase of raw and packing materials
- Nestrade S.A.
 447.6 
 262.4 
- Sofinol S.A.
 - 
 213.0 
- Others
 46.6 
 54.1 
(d)	
Purchase of finished goods
- Nestlé Lanka PLC
 380.3 
 164.8 
- Nestrade S.A.
 267.1 
 260.5 
- Nestlé Enterprises SA
 155.2 
 - 
- Nestlé Korea Ltd
 - 
 85.4 
- Others
 12.1 
 120.2 
(e)	
General licence fees (net of taxes) 
- Société des Produits Nestlé S.A.
6540.5
 5,928.5 
- CPW S.A.
4.6
 6.5 
(f)	
Expenses recovered (1)
- Nestlé Operational Services Worldwide S.A.
 113.6 
 81.2 
- Nestlé Lanka PLC
 94.5 
 117.5 
-  Nestlé Bangladesh Ltd
 70.4 
 54.2 
- Nestlé R&D Centre India Private Limited
 50.8 
 53.8 
- Société des Produits Nestlé S.A
 43.8 
 118.6 
- Others
 137.0 
 92.2 
(g)	
Expenses incurred
- Nestlé R & D Center (Pte) Limited 
 41.5 
 23.8 
- Société des Produits Nestlé S.A.
 - 
 - 
- Nestlé Francé S.A.S.
 30.1 
 22.5 
- Nestlé Operational Services Worldwide S.A.
 19.8 
 75.4 
- Others
 39.2 
 50.6

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
91
NESTLÉ INDIA LIMITED
Particulars
Year ended 
31 December 2021 
(` in million)
Year ended
31 December 2020
(` in million)
(h)	
Information technology and management information systems
- Nestlé Australia Ltd
 787.5 
 852.5 
(i)	
Loans granted
- Purina Petcare India Private Ltd.
 - 
 350.0 
(j)	
Repayment of loans granted
- Purina Petcare India Private Ltd.
 - 
 350.0 
(k)	
Interest on loans granted
- Purina Petcare India Private Ltd.
 - 
 13.2 
Entities Controlled by Key Management Personnel:
Purchase of raw and packing materials
- Piramal Glass Private Limited
 63.3 
 123.5 
- Piramal Enterprises Limited
 9.5 
 - 
Remuneration to Key Management personnel(2)
Executive directors
- Short term employee benefits
 286.2 
 241.9 
- Post employment benefits
 5.9 
 5.4 
- Share based payments
 49.8 
 86.2 
Non - Executive directors
- Short term employee benefits (Sitting fee & Commission)
 15.9 
12.4
Contribution to Employee related trusts
- Nestlé India Limited Employees’ Provident Fund Trust
 300.8 
 260.8 
- Nestlé India Limited Employees’ Gratuity Trust Fund
 434.0 
 - 
As at
31 December 2021
(` in million)
As at
30 December 2020
(` in million)
Balance outstanding as at the year end 
Receivables from fellow subsidiaries
 573.9 
 744.4 
Payables to fellow subsidiaries
 1,087.9 
 1,049.6 
Payables to entities controlled by Key Managerial Personnel
 3.9 
 41.9 
Payables to Key management personnel
 64.2 
 59.8 
Payables to Employees’ Provident Fund Trust
 25.3 
 22.9 
Note:
(1)	
Inclusive of Goods & Service Tax, wherever applicable.
(2)	
As the liabilities for defined benefit obligations are provided based on actuarial valuation for the company as a whole, the 
amount pertaining to Key management personnel has not been included.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
92
46.	 Segment reporting
Based on the guiding principles given in Ind AS 108 on ‘Operating Segments’, the Company’s business activity falls within 
a single operating segment, namely Food. Accordingly, the disclosure requirements of Ind AS 108 are not applicable. The 
food business incorporates product groups viz. Milk Products and Nutrition, Prepared Dishes and Cooking aids, Powdered 
and Liquid Beverages and Confectionery.
Information by Geographies
(i)	
Revenue from external customers
Year ended  
31 December 2021
(` in million)
Year ended  
31 December 2020
(` in million)
India
 139,941.5 
126,427.7 
Outside India
 6,395.7 
6,473.9 
 146,337.2 
132,901.6 
(ii)	
 The Company has business operations only in India and does not hold any assets outside India.
Revenue from major customers
There is no single customer that accounts for more than 10% of the Company’s revenue.
47.	 Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006
On the basis of confirmation obtained from suppliers who have registered themselves under the Micro Small Medium 
Enterprise Development Act, 2006 (MSMED Act, 2006) and based on the information available with the Company, the 
following are the details:
31 December 2021
(` in million)
31 December 2020
(` in million)
(i)	
Principal amount remaining unpaid
 2,808.7 
 1,139.9 
(ii)	
Interest due thereon remaining unpaid
-
-
(iii)	 Interest paid by the Company in terms of Section 16 of the Micro, 
Small and Medium Enterprises Development Act, 2006, along-
with the amount of the payment made to the supplier beyond the 
appointed day during the period
-
-
(iv)	 Interest due and payable for the period of delay in making payment 
(which have been paid but beyond the appointed day during the 
period) but without adding interest specified under the Micro, Small 
and Medium Enterprises Act, 2006
-
-
(v)	
Interest accrued and remaining unpaid
-
-
(vi)	 Interest remaining due and payable even in the succeeding years, 
until such date when the interest dues as above are actually paid 
to the small enterprises
- 
-

NOTES FORMING PART OF THE FINANCIAL STATEMENTS
93
NESTLÉ INDIA LIMITED
As per our report of even date attached	
For and on behalf of the Board of Directors
For B S R & Co. LLP
Chartered Accountants
Firm’s Registration No. - 101248W/W-100022
VIKRAM ADVANI	
SURESH NARAYANAN	
DAVID McDANIEL	
B. MURLI
Partner	
Chairman and Managing Director	
Executive Director - 	
General Counsel &
Membership No. - 091765	
(DIN-07246738)	
Finance & Control and CFO	
Company Secretary
	
	
(DIN-08662504)
17 February 2022	
17 February 2022
New Delhi	
Gurugram
48.	 Dividends
(i)	
Dividend paid during the year
Year ended 
31 December 2021
(` in million)
Year ended 
31 December 2020
(` in million)
Interim Dividend of ` 135.00 per share for 2021 [for 2020: ` 135.00 per share]
 13,016.1 
13,016.1 
Final Dividend of ` 65.00 per share for 2020 [for 2019: ` 61.00 per 
share] 
 6,267.0 
5,881.4 
(ii)	
Proposed Final Dividend
The Board of Directors have recommended a final dividend of ` 65.00 per equity share amounting to ` 6,267.0  million 
for the year 2021 after the balance sheet date. The same is subject to approval by the shareholders at the ensuing 
Annual General Meeting of the Company and therefore proposed final dividend has not been recognised as a liability 
as at the balance sheet date in line with Ind AS 10 on ‘Events after the Reporting Period’.

94
ANNEXURE - 1 TO THE BOARD’S REPORT
REPORT ON CORPORATE GOVERNANCE FOR THE YEAR ENDED 31ST DECEMBER 2021
NESTLÉ’S PHILOSOPHY ON CODE OF GOVERNANCE
Nestlé India Limited (“the Company”), as a part of Nestlé Group, Switzerland has over the years followed best practices of 
Corporate Governance by adhering to practices of the Nestlé Group. The significant documents from Nestlé Group, which 
define the standard of behaviour of the Company, are “The Nestlé Corporate Business Principles”, “The Nestlé Management and 
Leadership Principles” and “The Nestlé India Code of Business Conduct”.
The Company’s business objective and that of its management and employees is to manufacture and market the Company’s 
products in such a way as to create value that can be sustained over the long term for consumers, shareholders, employees, 
business partners and the national economy. The Company is conscious of the fact that the success of a corporation is a 
reflection of the professionalism, conduct and ethical values of its management and employees. In addition to compliance with 
regulatory requirements, the Company endeavours to ensure that highest standards of ethical and responsible conduct are met 
throughout the organisation.
BOARD OF DIRECTORS
Composition and Category of Directors, attendance of each Director at the Board Meetings and the last Annual General Meeting, 
number of other Board of Directors or Committees in which a Director is a member or chairperson, name of the other listed 
companies, where such director is a Director and Category of Directorship
Above information as on 31st December 2021or for the year 2021, as applicable, is tabulated hereunder:
Director -  Category
DIN
No. of Board 
Meetings 
attended#
Attendance 
at the last AGM on 
07th May 2021
No. of outside 
Directorship 
heldA
No. of Membership/       
Chairpersonship in other Board 
CommitteesB
Category of Directorship and name of 
the other Listed Companies as on 
31st December 2021
Member
Chairperson
Executive
Mr. Suresh Narayanan
07246738
7
Yes
1
Nil
Nil
Independent Director
- Asian Paints Limited
Mr. David Steven McDaniel
08662504
7
Yes
Nil
Nil
Nil
  -
Mr. Matthias Christoph Lohner
08934420
7
Yes
Nil
Nil
Nil
  -
Independent Non-Executive
Mr. P. R. Ramesh
01915274
7
Yes
5
3
1
Independent Director
- Cipla Limited
- Crompton Greaves Consumer  
  Electricals Limited
- Housing Development Finance  
  Corporation Limited
Ms. Roopa Kudva
00001766
6
Yes
1
Nil
Nil
-
Ms. Rama Bijapurkar
00001835
6
Yes
8
3
2
Independent Director
- Mahindra & Mahindra Financial  
  Services Limited
- ICICI Bank LimitedC
- Cummins India Limited
- VST Industries Limited
- Sun Pharmaceutical Industries  
  Limited
- Apollo Hospitals Enterprise  
  Limited
Mr. Rajya Vardhan Kanoria
00003792
6
Yes
7
1
3
Executive Director
- Kanoria Chemicals and Industries  
  Limited
Non-Independent Non-Executive Director
- Ludlow Jute & Specialties  
  Limited
Independent Director
- J K Paper Limited
Dr. Swati A. Piramal
00067125
6
Yes
7
Nil
Nil
Executive Director
- Piramal Enterprises Limited
 #   Directors attended all meetings through Video Conferencing/ Other Audio-Visual Means.

95
NESTLÉ INDIA LIMITED
A	 Directorship in Companies registered under the Companies Act, 2013 or any earlier enactments, excluding Companies under Section 8 of the 
Companies Act, 2013.
B	 Only covers Membership/Chairpersonship of Audit Committee and Stakeholders Relationship Committee of public limited companies.
C	 Resigned w.e.f. 23rd January 2022.
The Board of Directors of your Company has a good and diverse mix of Executive and Non-Executive Directors with majority of 
the Board Members comprising Independent Directors and the same is also in line with the Companies Act, 2013 (“the Act”) and 
Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”). 
As on 31st December 2021, the Board of Directors consisted of eight Directors comprising one Chairman and Managing Director, 
five Independent Directors including three Woman Directors, and two Executive Directors. None of the Independent Directors 
of the Company serves as an Independent Director in more than seven listed companies and where any Independent Director is 
serving as Whole-Time Director in any listed company, such Director is not serving as Independent Director in more than three 
listed companies. 
During the year, the Board of Directors met seven times on 15th January 2021, 16th February 2021, 20th April 2021, 
28th July 2021, 24th September 2021, 19th October 2021 and 11th November 2021. In the wake of COVID-19 pandemic and to 
adhere to the lockdown and social distancing norms, the directors participated in the meetings of the Board and Committees held 
during the year 2021 through video conferencing/ other audio-visual means. The meetings and agenda items taken up during 
the meetings complied with the Act and Listing Regulations read with various circulars issued by Ministry of Corporate Affairs 
(“MCA”) and Securities Exchange Board of India (“SEBI”) due to COVID-19 pandemic. The maximum gap between any two Board 
Meetings was less than one hundred and twenty days. All material information was circulated to the directors before the meeting 
or placed at the meeting, including minimum information required to be made available to the Board of Directors as prescribed 
under Part-A of Schedule II of sub-regulation 7 of Regulation 17 of the Listing Regulations. 
The Company has proper online systems to enable the Board of Directors to review on a half yearly basis compliance reports of 
all laws applicable to the Company, as prepared by the Company as well as to assess the steps taken by the Company to rectify 
instances of non-compliances, if any.
Independent Directors
The Company has familiarisation programme for Independent Directors with regard to their roles, rights, responsibilities in the 
Company, nature of the industry in which the Company operates, the business model of the Company etc. The familiarisation 
programme along with details of the same imparted to the Independent Directors during the year are available on the website of 
the Company at https://www.nestle.in/investors/directorsandofficers/familiarisation-programme.
During the year, a separate meeting of the Independent Directors was held on 16th February 2021 without the attendance of 
Non-Independent Directors and members of the management. All Independent Directors attended the said meeting through video 
conferencing/ other audio-visual means. 
None of the Independent Non-Executive Directors held any equity share(s) or convertible instrument(s) of the Company during the 
financial year ended 31st December 2021. Further, none of the Directors had any relationships inter-se. The Independent Directors 
provided an annual confirmation that they meet the criteria of independence.
Based on the confirmations/ disclosures received from the Independent Directors in terms of Regulation 25(9) of the Listing 
Regulations and a certificate from M/s. S.N. Ananthasubramanian & Co., Practising Company Secretary (Registration No. 1774), 
Secretarial Auditors of the Company, the Board of Directors is of the opinion that the Independent Directors fulfil the criteria or 
conditions specified under the Act and under the Listing Regulations and are independent from the management.
During the year, none of the Independent Directors of the Company had resigned before the expiry of their respective tenure(s).
Skills/ Expertise/ Competencies Matrix
The core skills/ expertise/ competencies as identified by the Board of Directors as required in the context of the Company’s 
business(es) and sector(s) for it to function effectively and those actually available with the Board of Directors are given below. 
The matrix below highlights the skills and expertise, which are currently available with the Board of Directors of the Company:

96
Key Skill 
Area
Skills/ Expertise/ Competencies
Suresh 
Narayanan
David 
Steven 
McDaniel
Matthias 
Christoph 
Lohner
Roopa 
Kudva
Rama 
Bijapurkar
Rajya  
Vardhan 
Kanoria
P. R. 
Ramesh
Swati A. 
Piramal
Business & 
Strategy
Consumer insight & marketing
Y
Y
Y
Technical & R&D (including nutrition & food 
science)
Y
Y
Economic issues/ Macro Economic Trends/ 
Interpreting national policies
Y
Y
Y
Y
Y
Y
Y
E-commerce, digital & new technologies and 
M&A
Y
Y
Y
Y
Y
Y
Operations
Sales & Customer Management
Y
Y
Y
Y
Y
Operation Management & Risk Mitigation
Y
Y
Y
Y
Y
Finance Treasury and Audit
Y
Y
Y
Y
Information technology 
Y
Environment
Sustainability (water, sanitation, community 
development, nutrition) under Creating Shared 
Value/ CSR
Y
Y
Y
Y
Y
Y
Scientific & Regulatory Affairs
Y
Y
Y
Media, local interaction and environment 
assessment
Y
Y
Y
Y
Y
Y
Climate change
Y
Y
Y
Other 
enablers
Innovation Management
Y
Y
Human Resource & Talent
Y
Y
Y
Y
Y
Y
Y
Y
Communications
Y
Y
Y
Y
Y
Y
Y
Y
Board Governance and General Management 
Y
Y
Y
Y
Y
Y
Y
Y
 
Compliance with the Code of Conduct
The Company has adopted the ‘The Nestlé India Code of Business Conduct’ (“the Code”). The Code is available on the website 
of the Company at https://www.nestle.in/investors/policies.
The Chairman and Managing Director declared that the members of the Board and Senior Management Personnel have affirmed 
compliance with the Code during the year 2021.
AUDIT COMMITTEE
The powers, role and terms of reference of the Audit Committee covers the areas as contemplated under Section 177 of the Act 
and Regulation 18 of Listing Regulations, as applicable, besides other terms as referred by the Board.
The powers include investigating any activity within its terms of reference as specified by the Board of Directors and seeking 
information from any employee, obtain professional advice from external sources, secure attendance of outsiders with relevant 
expertise, if considered required and have full access to information contained in the records of the Company.
The role includes oversight of Company’s financial reporting process and disclosure of financial information to ensure that the 
financial statements are correct, sufficient and credible; recommending the appointment, re-appointment, remuneration and terms 
of appointment of auditors and approval of payment for any other services rendered by statutory auditors; reviewing with the 
management quarterly results and annual financial statements before submission to the Board of Directors for approval; approval 
or any subsequent modification of any transactions of the Company with related parties; review and monitor the auditor’s 
independence and performance and effectiveness of audit process; scrutiny of inter-corporate loans and investments, if any; 
evaluation of internal financial controls and risk management system; reviewing the functioning of the vigil mechanism/ whistle 
blower policy; reviewing the internal controls to ensure compliance with the applicable provisions of the SEBI (Prohibition of 
Insider Trading) Regulations, 2015 (“PIT Regulations”) and verifying that the system for internal control under PIT Regulations are 
adequate and are operating effectively.
The Committee mandatorily reviews information such as internal audit reports related to internal control weakness, management

97
NESTLÉ INDIA LIMITED
discussion and analysis of financial condition and result of operations, statement of significant related party transactions and such 
other matters as prescribed.
As on 31st December 2021, the Audit Committee comprised of Mr. P. R. Ramesh as Chairman, Mr. Rajya Vardhan Kanoria and 
Ms. Roopa Kudva as Members, all Independent Non-Executive Directors. All members of the Audit Committee are financially 
literate and have related financial management expertise by virtue of their comparable experience and background. The Company 
Secretary acts as the Secretary to the Audit Committee. The Executive Director – Finance & Control and CFO, Head of Financial 
Accounting, and Deputy Company Secretary are permanent invitees to the meetings of the Audit Committee. The Chief Internal 
Auditor, the concerned partners/ authorized representatives of Statutory Auditors and Cost Auditors are invited to the meetings 
of the Audit Committee. The Secretarial Auditors are invited to the meeting of the Audit Committee to present the Secretarial 
Audit Report and their findings.
During the year, the Audit Committee met six times on 16th February 2021, 20th April 2021, 28th July 2021, 24th September 2021, 
19th October 2021 and 10th November 2021 and all members of the Audit Committee participated in the aforesaid meetings 
through video conferencing/ other audio-visual means except the meeting held on 28th July 2021 for which Ms. Roopa Kudva 
was granted leave of absence.  The maximum gap between any two meetings was less than one hundred and twenty days. 
On 16th February 2021 the Audit Committee had a meeting with the Statutory Auditors without the presence of anyone else. 
NOMINATION AND REMUNERATION COMMITTEE
The powers, role and terms of reference of the Nomination and Remuneration Committee covers the areas as contemplated 
under Section 178 of the Act and Regulation 19 of the Listing Regulations, besides other terms as referred by the Board. 
The role includes formulation of criteria for determining qualifications, positive attributes and independence of a director and 
recommending to the Board of Directors a policy relating to the nomination and remuneration for the directors, key managerial 
personnel and other employees; formulation of criteria for evaluation of Independent Directors and the Board; devising a policy 
on diversity of Board of Directors; and identification of persons who are qualified to become directors and who may be appointed 
in senior management in accordance with the criteria laid down, and recommending to the Board of Directors their appointment, 
removal and noting their cessation; recommendation on extension or continuation of the terms of appointment of the Independent 
Directors; and recommendation to the Board of Directors of all remuneration, in whatever form, payable to senior management.
As on 31st December 2021, the Nomination and Remuneration Committee comprised of Mr. Rajya Vardhan Kanoria as Chairman, 
Mr. P. R. Ramesh and Ms. Roopa Kudva as Members, all Independent Non-Executive Directors. The Company Secretary acts as 
the Secretary to the Nomination and Remuneration Committee. The Chairman and Managing Director, Head of Human Resources 
and Deputy Company Secretary are permanent invitees to the meetings of the Nomination and Remuneration Committee. 
During the year, the Nomination and Remuneration Committee met four times on 16th February 2021, 19th April 2021, 27th July 2021 
and 18th October 2021 and all members of the Committee participated in the aforesaid meetings through video conferencing/ other 
audio-visual means except the meeting held on 27th July 2021 for which Ms. Roopa Kudva was granted leave of absence. 
Performance Evaluation
In terms of the requirement of the Act and the Listing Regulations, an annual performance evaluation of the Board, its Committees 
and the Directors was undertaken which included the evaluation of the Board as a whole, Board Committees and peer evaluation of 
the Directors. The criteria for performance evaluation cover the areas relevant to the functioning of the Board and Board Committees 
such as its composition and operations, Board as whole and group dynamics, oversight and effectiveness, performance, skills and 
structure etc. The performance of individual directors was evaluated on the parameters such as preparation, participation, flow 
of information, conduct, independent judgement, and effectiveness. The performance evaluation of Independent Directors was 
done by the entire Board of Directors and in the evaluation of the Directors, the Directors being evaluated had not participated. A 
reputed HR Consultant Firm compiled and provided analysis of the results of the annual performance evaluation. As an outcome of 
the evaluation, it was noted that board as a whole has a composition that is diverse in experience, skills, expertise, competence, 
gender balance, and fosters lively, free expression and constructive debates. The discussion quality is robust, well intended and 
leads to clear direction and decision. The presentations by the Senior Management and their teams provides an insight at a deeper 
level and exposure to segments. It was also noted that the Board Committees functions professionally and smoothly and besides 
the Board Committee’s terms of reference as mandated by law, important issues are bought up and discussed in the respective 
Board Committees. The Board of Directors also noted that implementation of the Board Portal helped in better flow of information 
and evaluate the proposals presented at the Board/ Committee meetings more effectively. The Board of Directors provided their 
inputs, inter-alia, on the on-boarding process of new directors, time allocation for the meetings and bringing in broad perspective 
on the global developments, strategies and priorities.

98
Remuneration of Directors for the year 2021
(` in Millions)
Name of the Director
Sitting Fee
Salaries and 
Allowances
Perquisites
Company’s 
Contribution 
to PF 
Commission and 
Performance Linked 
Incentive
Total
Mr. Suresh Narayanan1
N.A.
92.41
59.08
3.37
33.21
188.07
Mr. David Steven McDaniel1
N.A.
53.66
14.33
1.35
11.35
80.70
Mr. Matthias Christoph Lohner1
N.A.
44.53
17.69
1.15
9.66
73.03
Ms. Rama Bijapurkar
0.83
-
-
-
2.00
@
2.83
Mr. Rajya Vardhan Kanoria
1.50
-
-
-
2.00
@
3.50
Ms. Roopa Kudva
1.30
-
-
-
2.00
@
3.30
Mr. P. R. Ramesh
1.60
-
-
-
2.00
@
3.60
Dr. Swati A. Piramal
0.65
-
-
-
2.00
@
2.65
1	 The Company enters into service contracts with all Executive Directors for a period of 5 years. The notice period is of three months and the severance fee is 
the sum equivalent to remuneration for the notice period or part thereof in case of shorter notice.
@	 Represents Commission for the year ended 31st December 2021, which will be paid after adoption of the accounts by the shareholders at the Annual General 
Meeting, subject to deduction of applicable tax.
Sitting fee indicated above also includes payment for Board-level committee meetings.
The above remuneration of Executive Directors does not include provision for incremental liability on account of gratuity, 
compensated absences and long service awards since actuarial valuation is done for the Company as a whole. The terms 
of employment of Executive Directors are governed by the applicable policies of the Company at the relevant point in time. 
Commission is subject to adequate profits being earned. A fair portion of the Executive Director’s Performance Linked 
Incentive is linked to Company’s performance. This creates alignment with the strategy and business priorities to enhance 
shareholder value. The total reward package for executive directors is intended to be market competitive with strong linkage to 
performance in line with Company’s Remuneration Policy which is available on the website of the Company at 
https://www.nestle.in/investors/policies. 
The non-executive directors are paid remuneration based on their contribution and current trends. Sitting fee is paid for attending 
each meeting of the Board and Committees thereof. Additionally, the non-executive directors are entitled to remuneration upto 
an aggregate limit of one percent per annum of the net profits of the Company, provided that none of the non-executive directors 
shall receive individually a sum exceeding ` 2,500,000/- (Rupees Twenty Five Lakh only), as approved by the members at the 
Annual General Meeting held on 10th May 2018. Within the aforesaid limit, the commission payable is determined by the Board of 
Directors and equal amount of commission is payable to independent non-executive directors on a pro-rata basis. During the year 
under review, remuneration of non-executive directors was approved by the Board of Directors with the interested non-executive 
directors, not participating or voting, as per the terms approved by the shareholders at the Annual General Meeting. Further, none 
of the Non-Executive Directors had any material pecuniary relationship or transaction vis-à-vis the Company during the year under 
review, other than payment of sitting fee and commission, as mentioned above.
The Company does not have any stock option scheme. The Company participates in the Performance Share Unit Plan/ Restricted 
Stock Unit Plan of Nestlé S.A., whereby selected employees are granted non-tradable Performance Share Units/ Restricted Stock 
Unit of Nestlé S.A. Perquisites of the Whole-time/ Managing Director include, inter-alia, Leave Travel and payments for the 
Restricted Stock Units/ Performance Stock Units of Nestlé S.A. vested during the year equal to the market value of the underlying 
shares on the date of vesting.
A brief profile and other particulars of the directors seeking appointment and re-appointment is given in the Notice of the 
63rd Annual General Meeting and forms part of the Report.

99
NESTLÉ INDIA LIMITED
STAKEHOLDERS RELATIONSHIP COMMITTEE
The Stakeholders Relationship Committee oversees, inter-alia, redressal of shareholder and investor grievances, transmission/ 
transposition of shares, non-receipt of annual report or declared dividend, issue of duplicate shares, exchange of new design 
share certificates, reviewing dematerialisation of shares and related matters. The roles and responsibilities of the Stakeholders 
Relationship Committee are as prescribed under Section 178 of the Companies Act, 2013 and Regulation 20 of the Listing 
Regulations.
As on 31st December 2021, the Stakeholders Relationship Committee comprised of Ms. Rama Bijapurkar, Independent  
Non-Executive Director as Chairperson, Mr. Rajya Vardhan Kanoria, Independent Non-Executive Director and Mr. David Steven 
McDaniel, Executive Director- Finance & Control and CFO as Members. The Company Secretary acts as the Compliance Officer 
and the Deputy Company Secretary is a permanent invitee to the meetings of the Stakeholders Relationship Committee.
During the year, the Stakeholders Relationship Committee met four times on 16th February 2021, 19th April 2021, 27th July 2021 
and 18th October 2021. All members of the Committee participated in the aforesaid meetings through video conferencing/ other 
audio-visual means.
During the year, three complaints were received from shareholders and investors. All the complaints have been resolved to the 
satisfaction of the complainants and no investor complaint was pending at the beginning or at the end of the year.
RISK MANAGEMENT COMMITTEE
The roles and responsibilities of the Risk Management Committee are as prescribed under Regulation 21 of the Listing Regulations 
and includes monitoring and reviewing of risk management plan and reporting the same to the Board of Directors periodically 
as it may deem fit, in addition to any other terms as may be referred by the Board of Directors, from time to time. The Risk 
Management Committee has, inter-alia, formulated a detailed Risk Management Policy as prescribed under the Listing Regulations.
During the year, Mr. P. R. Ramesh and Ms. Roopa Kudva, Independent Non-Executive Directors, were appointed as members 
of the Risk Management Committee with effect from 20th April 2021. Mr. Matthias Christoph Lohner, Executive Director-
Technical, ceased to be the member of the Risk Management Committee on 20th April 2021. As on 31st December 2021, 
the Risk Management Committee comprised of Mr. Suresh Narayanan (Chairman), Mr. P. R. Ramesh, Ms. Roopa Kudva and 
Mr. David Steven McDaniel, as Members. The Company Secretary acts as the Secretary to the Risk Management Committee and 
the Executive Director-Technical and Deputy Company Secretary are permanent invitees to the meetings of the Risk Management 
Committee. 
During the year, the Risk Management Committee met four times on 15th March 2021, 27th July 2021, 24th September 2021 and 
18th October 2021. All the members of the Risk Management Committee participated in the aforesaid meetings through video 
conferencing/ other audio-visual means except Ms. Roopa Kudva who was granted leave of absence for the meeting held on 
27th July 2021.
CORPORATE SOCIAL RESPONSIBILITY COMMITTEE
The Corporate Social Responsibility Committee oversees, inter-alia, corporate social responsibility and other related matters 
as may be referred by the Board of Directors and discharges the roles as prescribed under Section 135 of the Act read with 
Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended, (“CSR Rules”), which includes formulating and 
recommending to the Board of Directors, a Corporate Social Responsibility (CSR) Policy indicating the activities to be undertaken 
by the Company, as per Schedule VII to the Act; the amount of expenditure to be incurred; and monitoring the CSR Policy of 
the Company. The CSR Committee has formulated an Annual Action Plan pursuant to the CSR Rules and the CSR Policy of the 
Company, as amended from time to time. 
As on 31st December 2021, the Corporate Social Responsibility Committee comprised of Dr. Swati A. Piramal Independent Non-
Executive Director, as Chairperson, Ms. Rama Bijapurkar, Independent Non-Executive Director, Mr. Suresh Narayanan, Chairman

100
and Managing Director and Mr. David Steven McDaniel, Executive Director – Finance & Control and CFO, as Members. The 
Company Secretary acts as the Secretary to the Corporate Social Responsibility Committee. The Deputy Company Secretary is 
permanent invitee to the meetings of the Corporate Social Responsibility Committee. 
During the year, the CSR Committee met thrice on 16th February 2021, 27th July 2021 and 18th October 2021. All the 
members attended these meetings except for Ms. Rama Bijapurkar, who was granted leave of absence for the meeting held on 
27th July 2021 and Dr. Swati A. Piramal who was granted leave of absence for the meetings held on 16th February 2021 and 
18th October 2021. Mr. Suresh Narayanan acted as Chairperson for these meetings in place of Dr. Swati A. Piramal. All the CSR 
Committee Meetings were held through video conferencing/ other audio-visual means.
GENERAL BODY MEETINGS
Required details of last three Annual General Meetings (AGMs), are as below:
AGM
   Date & Time Venue
Special Resolution(s)
62nd
7th May 2021
At 10:00 A.M. 
(IST)
Through Video Conferencing / 
Other Audio-Visual Means
(Deemed venue of the 
meeting: 100/ 101, World 
Trade Centre, Barakhamba 
Lane, New Delhi-110001)
No Special Resolution was passed in this meeting.
61st
19th June 2020
At 10:00 A.M. 
(IST)
Through Video Conferencing / 
Other Audio-Visual Means
(Deemed venue of the 
meeting: 100/ 101, World 
Trade Centre, Barakhamba 
Lane, New Delhi-110001)
No Special Resolution was passed in this meeting.
60th
25th April 2019
At 10:00 A.M. 
(IST)
Air Force Auditorium, Subroto 
Park, New Delhi-110010
Re-appointment of Mr. Rajya Vardhan Kanoria as an Independent 
Non-Executive Director for second term of five consecutive years 
w.e.f. 13th May 2019 to 12th May 2024
During the year, no special resolution was passed through postal ballot. There is no special resolution proposed to be conducted 
through postal ballot.
MEANS OF COMMUNICATION
The quarterly results of the Company were widely published in leading newspapers such as Financial Express and Jansatta and 
also displayed on the website of the Company at https://www.nestle.in/investors/stockandfinancials/financialresults. All official 
press releases, presentations made to analysts and institutional investors and other general information about the Company are 
also available on the website of the Company.
The presentations made to the analysts and institutional investors, if any, are not communicated individually to the 
shareholders of the Company. However, in addition to uploading the same on the website of the Company at 
https://www.nestle.in/investors/analystsmeet, the presentations are submitted to Stock Exchange for dissemination.

101
NESTLÉ INDIA LIMITED
GENERAL SHAREHOLDER INFORMATION
Annual General Meeting@
Day, Date and Time	
:	
Wednesday, 30th March 2022 at 10:00 A.M. (IST)
Venue	
:	
Annual General Meeting through Video Conferencing/ 
                                                                Other Audio-Visual Means (VC/ OAVM facility)
                                                                [Deemed Venue for meeting: Registered Office: 100/ 101,
                                                                World Trade Centre, Barakhamba Lane, New Delhi-110001]
Financial Calendar, 2022 (tentative)@
First Quarter Results	
:	
Third/ Fourth Week of April 2022
Second Quarter and Half-yearly Results	
:	
Third/ Fourth week of July 2022     
Third Quarter Results	
:	
Third/ Fourth week of October 2022
Annual Results	
:	
Second/ Third week of February 2023
Financial Year	
:	
1st January to 31st December
Record Date	
:	
8th April 2022
Dividend payments@: Final Dividend of ` 65/- per equity share has been recommended by the Board of Directors and subject to 
the approval of the shareholders at the ensuing 63rd Annual General Meeting is proposed to be paid on and from 26th April 2022 
(payment date).
The interim dividends for the year 2021 of ` 25/- per equity share and ` 110/- per equity share of `10/- each, were paid on and 
from 19th May 2021 and 16th November 2021, respectively.
Listing on Stock Exchanges and Stock Code
Shares of the Company are listed at BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai–400001. The Company’s 
Stock Code is 500790.
The ISIN of Nestlé India Limited on both the NSDL and CDSL is INE239A01016.
Market Price Data: High/Low in each month of Calendar Year, 2021 on the BSE Limited, Mumbai
Month
High (`)
Low (`)
Month
High (`)
Low (`)
January
18,621.05
16,961.20
July
18,446.55
17,361.95
February
17,634.60
15,900.00
August
20,333.80
17,666.45
March
17,261.45
16,075.15
September
20,599.95
19,320.35
April
17,863.85
16,271.45
October
20,200.00
18,611.00
May
17,894.00
16,267.05
November
19,588.75
18,569.00
June
18,175.00
17,334.35
December
19,795.00
18,606.30
[Source: www.bseindia.com]
The Company had paid Annual Listing Fees for the Financial Year 2021-2022.

102
Performance in comparison to BSE Sensex
(Closing value of Nestlé share price vs BSE Sensex on the last trading day of the month)
Base is considered to be 100 as at 31st December 2020
[Source: www.bseindia.com]
Registrar and Share Transfer Agents
M/s. Alankit Assignments Limited, 4E/2, Jhandewalan Extension, New Delhi-110055.
Share Transfer System
In terms of the Listing Regulations, equity shares of the Company can only be transferred in dematerialised form. Requests for 
dematerialisation of shares are processed and confirmation thereof is given to the respective depositories i.e. National Securities 
Depository Limited (NSDL) and Central Depository Services India Limited (CDSL), within the statutory time limit from the date of 
receipt of share certificates/ letter of confirmation after due verification.
Shareholding Pattern as on 31st December 2021
Category of Shareholder
Number of Shares
Percentage of Total Shares
Promoter and Promoter Group (A)
60,515,079
62.76
Public Shareholding
35,900,637
37.24
Mutual Funds
3,643,136
3.78
Alternate Investment Fund
133,073
0.14
Foreign Portfolio Investor
11,906,396
12.35
Financial Institutions/ Banks
61,669
0.06
Insurance Companies
3,769,797
3.91
Central/ State Government(s)
1,600
0.00
Individuals
12,834,894
13.31
NBFCs
6,817
0.01
Any Other
- Bodies Corporate
1,900,988
1.97
- Overseas Corporate Body
500
0.00
- NRIs
802,394
0.83
- Trust
493,172
0.51
- IEPF Authority 
100,458
0.10
- HUF
221,260
0.23
- Clearing Members
24,483
0.03
Total Public Shareholding (B)
35,900,637
37.24
Total Shareholding (A + B)
96,415,716
100.00

103
NESTLÉ INDIA LIMITED
Distribution of shareholding as on 31st December 2021
Number of Shares
Number of Shareholders
Number of Shares Percentage of total Shares
1 to 500
182,110
4,562,733
4.73
501 to 1,000
2,314
1,669,293
1.73
1,001 to 2,000
1,014
1,435,121
1.49
2,001 to 3,000
363
905,835
0.94
3,001 to 4,000
189
660,579
0.68
4,001 to 5,000
123
557,807
0.58
5,001 to 10,000
256
1,850,773
1.92
10,001 and above
393
               84,773,575
87.93
Total
186,762
96,415,716
100.00
Dematerialisation of shares
99.40% equity shares of the Company are in dematerialised form as on 31st December 2021.
Outstanding ADRs/ GDRs/ Warrants or any convertible instruments, conversion date and likely impact on equity
No GDRs/ ADRs/ Warrants or any convertible instruments have been issued by the Company during the year 2021.
Commodity price risk or foreign exchange risk and hedging activities
The Company does not have any exposure hedged through commodity derivatives. During the year 2021, the Company had 
managed the foreign exchange risk and hedged to the extent considered necessary. The Company enters into forward contracts 
for hedging foreign exchange exposures against exports and imports. The details of foreign currency exposure are disclosed in 
Note No. 41 to the Annual Audited Financial Statements.
Plant Locations
The Company’s plants are located at Moga, Samalkha, Nanjangud, Choladi, Ponda, Bicholim, Pantnagar, Tahliwal and Sanand.
Address for correspondence
Shareholder Services, 100/ 101, World Trade Centre, Barakhamba Lane, New Delhi–110001. Phone No.: 011-23418891, 
Fax. No.: 011-23415130
E-mail for investors: investor@in.nestle.com
SEBI toll-free helpline service for investors:1800 22 7575 or 1800 266 7575 (available on all days from 9:00 A.M. to 6:00 P.M. 
excluding declared holidays)*.
SEBI investors’ contact for feedback and assistance: Tel. No.: 022-26449000, e-mail: sebi@sebi.gov.in* 
*Source: www.sebi.gov.in
Credit Rating
The Company has been awarded AAA credit rating for its bank credit facilities by CRISIL. It is the highest rating and indicates 
a stable outlook for the Company. The rating reflects that the Company has serviced its financial obligations on time. As 
regards to the short-term facility provided by the bank, the Company has been awarded the credit rating of A1+. The 
rated instrument reflects strong degree of safety and lowest credit risk. The details of the Credit Rating are available on the 
website of the Company at  https://www.nestle.in/investors/stockandfinancials/credit-rating.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
(within the limits set by the Company’s competitive position)
Industry structure and developments, segment wise or product-wise performance, outlook, risks and opportunities of the Company 
and discussion on financial performance with respect to the operational performance, has been covered in the Board’s Report 
more specifically under the sections on Financial Results and State of Company’s Affairs and Management Analysis, Exports, 
Business Development of the Company.

104
The Company has an adequate system of internal controls to ensure that transactions are properly authorised, recorded, and 
reported, apart from safeguarding its assets. The internal control system is supplemented by well-documented policies, guidelines 
and procedures and reviews carried out by the Company’s internal audit function, which submits reports periodically to the 
Management and the Audit Committee of the Board.
In order to foster an improved internal control culture in the Company, wherein every employee is fully aware of all the major 
risk/ controls faced in his/ her work sphere and assumes responsibility for the controls performed therein, the Company has 
inter-alia implemented a tool called “Controls Manager” which works on the basic concept of Control Self-Assessment. The 
Self- Assessments by process/ control owner are also used as the basis of CEO/ CFO certification as required under 
Regulation 17(8) of the Listing Regulations.
Your Company has a favourable work environment that motivates performance, customer focus and innovation while adhering to 
the highest degree of quality and integrity. As part of manpower development and training and with an aim to enhance operational 
efficiency, employees of the Company have been sent on postings and assignments to other Nestlé Group companies.
Manpower figure of the Company as on 31st December 2021 was 7,910.
The Annual Report has details of significant changes (i.e. change of 25% or more as compared to the immediately previous 
financial year) in key financial ratios as applicable, along with detailed explanations thereof, including (i) Debtors Turnover, 
(ii) Inventory Turnover, (iii) Interest Coverage Ratio, (iv) Current Ratio, (v) Debt Equity Ratio, (vi) Operating Profit Margin, and 
(vii) Net Profit Margin. Details of change in Return on Net Worth as compared to the immediately previous financial year along 
with a detailed explanation thereof is also part of this Annual Report.
CEO/ CFO CERTIFICATION
The Chairman and Managing Director and the Executive Director- Finance & Control and CFO of the Company have certified to 
the Board of Directors, inter-alia, the accuracy of financial statements and adequacy of internal controls for the financial reporting 
as required under Regulation 17(8) of the Listing Regulations for the year ended 31st December 2021.
DISCLOSURES
During the year 2021, the Company had no materially significant related party transaction, which is considered to have potential 
conflict with the interests of the Company at large. Transactions with related parties are disclosed in Note No. 45 to the 
Annual Audited Financial Statements. The Company has formulated a policy on materiality of Related Party Transactions and 
also on dealing with Related Party Transactions. The said policy is also available on the website of the Company at 
https://www.nestle.in/investors/policies.
The equity shares of the Company are listed on BSE Limited, Mumbai and the Company has complied with all the applicable 
Regulations of capital markets. No penalties or strictures have been imposed on the Company by the Stock Exchange, SEBI or 
any other statutory authority, on any matter relating to the capital markets, during the last three years.
The standard of behaviour of Nestlé India is governed by significant documents “The Nestlé Corporate Business Principles”, 
“The Nestlé Management and Leadership Principles” and “Nestlé India Code of Business Conduct”. Employees can report to the 
Company Secretary, on a confidential basis, any practices or actions believed to be inappropriate or illegal under Nestlé India 
Code of Business Conduct (“the Code”). The Company has established vigil mechanism/ whistle blower policy (“Policy”), which 
is available on the website of the Company at https://www.nestle.in/investors/policies.
The Code/ Policy provides for adequate safeguards against victimization of director(s)/ employee(s) who avail of the mechanism 
and also provides for direct access to the Chairman of the Audit Committee in exceptional cases. It is affirmed that no person has 
been denied access to the Audit Committee. The Company provides an independent third party operated free phone and web-
based Platform, namely, “Speak-Up”, to all internal and external stakeholders including directors and employees with a dedicated 
communication channel for reporting potential instances of non-compliance with Nestlé Corporate Business Principles or for reporting, 
on a confidential basis, any practices or actions believed to be inappropriate or illegal under the Code. Link to “Speak-Up Platform” 
is available on the website of the Company at  https://www.nestle.com/aboutus/businessprinciples/report-your-concerns.
Further, the Company has appointed Ombudsman for Infant Code, under which employees can report Infant Code violations 
directly to the Ombudsman, with adequate safeguard to protect the employee reporting.
The Company has not raised any funds through preferential allotment or qualified institutions placement as specified under 
Regulation 32 (7A) of the Listing Regulations.
The Company has obtained a certificate from M/s. S.N. Ananthasubramanian & Co., Practising Company Secretary 
(Registration No. 1774), Secretarial Auditors of the Company, confirming that none of the Directors on the Board of the Company 
have been debarred or disqualified from being appointed or continuing as directors of the Company by the SEBI/ MCA or any such

105
NESTLÉ INDIA LIMITED
Statutory Authority. The said Certificate is appearing as “Annexure – I”.
During the year 2021, total fees for all services has been paid by the Company to the Statutory Auditors, M/s. B S R & Co. LLP, 
Chartered Accountants, and all the entities forming part of the same network, aggregated to ` 25.5 million.
During the year 2021, the Board of Directors accepted all recommendations of the Committees of the Board of Directors, which 
are mandatorily required to be made.
As per the requirement of the Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressal) Act, 2013 
(“POSH”), the Company has policy and robust mechanism in place to redress complaints reported under it. The Company has 
complied with provisions relating to the constitution of Internal Complaints Committee under POSH. The Internal Committee is 
composed of internal members and an external member who has extensive experience in the field. In 2021, one case of sexual 
harassment was reported in the Company, which has been investigated and resolved as per the provisions of the POSH.
The Company has inter-alia complied with all the mandatory requirements specified in Regulations 17 to 27 and clauses (b) to (i) 
of sub – regulation (2) of Regulation 46 of the Listing Regulations.
The Corporate Governance Report of the Company for the year 2021 or as on 31st December 2021 are in compliance with all 
applicable requirements of Listing Regulations.
The status of adoption of the non-mandatory requirements as specified in sub – regulation 1 of Regulation 27 of the Listing 
Regulations are as follows:
(a) The Board: The Company has an Executive Chairman; (b) Shareholder Rights: Half-yearly and other quarterly financial results 
are published in newspapers and uploaded on the website of the Company at www.nestle.in; (c) Modified opinion(s) in audit 
report: The Company already has a regime of un-qualified financial statements. Auditors have raised no qualification on the 
financial statements; (d) Reporting of Internal Auditor: The Chief Internal Auditor of the Company administratively reports to the 
Executive Director - Finance & Control and CFO with functional independence and has direct access to the Audit Committee.
	
	 	
On behalf of the Board of Directors
Date	 :	17th February 2022	
Suresh Narayanan
Place	:	Gurugram	
Chairman and Managing Director
@	
For administrative reasons, the Company postponed the 63rd AGM; the Record Date and Payment Date for Final Dividend. 
Accordingly, the relevant information has been updated in the “GENERAL SHAREHOLDER INFORMATION” section of the 
Corporate Governance Report for the year ended 31st December 2021:
	
Annual General Meeting
	
Day, Date and Time	
:	
Tuesday, 12th April 2022 at 10:00 A.M. (IST)
	
Venue	
:	
Annual General Meeting through Video Conferencing/ 
	
		
	
Other Audio-Visual Means (VC/ OAVM facility)
	
		
	
[Deemed Venue for meeting: Registered Office: 100/ 101,
	
		
	
World Trade Centre, Barakhamba Lane, New Delhi-110001]
	
Financial Calendar, 2022 (tentative)
	
First Quarter Results	
:	
Third/ Fourth Week of April 2022
	
Second Quarter and Half-yearly Results	 :	
Third/ Fourth week of July 2022     
	
Third Quarter Results	
:	
Third/ Fourth week of October 2022
	
Annual Results	
:	
Second/ Third week of February 2023
	
Financial Year	
:	
1st January to 31st December
	
Record Date	
:	
22nd April 2022
	
Dividend payments: Final Dividend of ` 65/- per equity share has been recommended by the Board of Directors and subject to 
the approval of the shareholders at the ensuing 63rd Annual General Meeting is proposed to be paid on and from 
6th May 2022 (payment date).
	
	 	
On behalf of the Board of Directors
Date	 :	4th March 2022	
Suresh Narayanan
Place	:	Gurugram	
Chairman and Managing Director

106
Annexure - I
CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS
[Pursuant to Regulation 34(3) and Schedule V Para C Clause (10)(i) of Securities and Exchange Board of India 
(Listing Obligations and Disclosure Requirements) Regulations, 2015]
To,
The Members of
Nestlé India Limited 
CIN: L15202DL1959PLC003786
100/ 101, World Trade Centre, Barakhamba Lane, New Delhi -110001
We have examined the following documents:
(i)	
Declaration of non-disqualification as required under Section 164 of Companies Act, 2013 (“the Act”); 
ii)	
Disclosure of concern or interests as required under Section 184 of the Act;
	
(hereinafter referred to as ‘relevant documents’)
as submitted by the Directors of Nestlé India Limited (‘the Company’) bearing CIN: L15202DL1959PLC003786 and having 
its registered office at 100/101, World Trade Centre, Barakhamba Lane, New Delhi -110001, to the Board of Directors of the 
Company (‘the Board’) for the Financial Year ended 31st December 2021 and Financial Year ending 31st December 2022 and 
relevant registers, records, forms and returns maintained by the Company and as made available to us for the purpose of issuing 
this Certificate in accordance with Regulation 34(3) read with Schedule V Para C Clause 10(i) of SEBI (Listing Obligations and 
Disclosure Requirements) Regulations, 2015. We have considered non-disqualification to include non-debarment by Regulatory/ 
Statutory Authorities.
It is the responsibility of Directors to submit relevant documents with complete and accurate information in accordance with the 
provisions of the Act. 
Due to the pandemic caused by COVID – 19 and prevailing lockdowns/ restrictions on movement of people imposed by the 
Government, for the purpose of issuing this certification, we have conducted our audit remotely based on the records and 
information made available to us by the Company electronically.
Ensuring the eligibility for the appointment/ continuity of every Director on the Board is the responsibility of the management of 
the Company. Our responsibility is to express an opinion on these based on our verification.
Based on our examination as aforesaid and such other verifications carried out by us as deemed necessary and adequate (including 
Directors Identification Number (DIN) status at the portal www.mca.gov.in), in our opinion and to the best of our information and 
knowledge and according to the explanations provided by the Company, its officers and authorized representatives, we hereby 
certify that none of the Directors on the Board of the Company, as listed hereunder for the Financial Year ended 31st December 2021, 
have been debarred or disqualified from being appointed or continuing as Directors of Companies by Securities and Exchange 
Board of India/ Ministry of Corporate Affairs or any such statutory authority.
Sr. No.
Name of Director
Director Identification Number (DIN)
Date of Appointment
Date of Cessation
01
Dr. Swati Ajay Piramal
00067125
02-08-2010
-
02
Mr. Rajya Vardhan Kanoria
00003792
13-05-2014
-
03
Mr. Suresh Narayanan
07246738
01-08-2015
-
04
Ms. Rama Bijapurkar
00001835
01-05-2017
-
05
Ms. Roopa Kudva
00001766
01-01-2019
-
06
Mr. David Steven McDaniel
08662504
01-03-2020
-
07
Mr. Prathivadibhayankara 
Rajagopalan Ramesh
01915274
01-07-2020
-
08
Mr. Matthias Christoph Lohner
08934420
01-11-2020
-

107
NESTLÉ INDIA LIMITED
This certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which 
the management has conducted the affairs of the Company.
This Certificate has been issued at the request of the Company to make disclosure in its Corporate Governance Report of the 
Financial Year ended 31st December 2021.
	
For S. N. ANANTHASUBRAMANIAN & Co.
	
Company Secretaries
	
ICSI Unique Code P1991MH040400
	
Peer Review Cert. No.: 606/2019
	
S. N. Ananthasubramanian
Date  : 14th February 2022	
Partner
Place : Thane	
FCS : 4206
	
COP No. : 1774
	
ICSI UDIN : F004206C002575489

108
Independent Auditors’ Certificate on Compliance with the Corporate Governance requirements under SEBI (Listing Obligations and 
Disclosure Requirements) Regulations, 2015
To the Members of Nestlé India Limited
1.	
This certificate is issued in accordance with our engagement letter dated 2nd August 2018 and addendum to the engagement  
	
letter dated 29th January 2020.
2.	
We, B S R & Co. LLP, the Statutory Auditors of Nestlé India Limited have examined the compliance of conditions of Corporate 
Governance by Nestlé India Limited (“the Company”) for the year ended 31st December 2021 as stipulated in Regulations 
17-27, clause (b) to (i) of Regulation 46 (2) and paragraphs C, D and E of Schedule V of the Securities and Exchange Board 
of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”) pursuant to the Listing 
Agreement of the Company with the stock exchange.
Management’s Responsibility for compliance with the conditions of Listing Regulations
3.	
The compliance of conditions of Corporate Governance as stipulated under the listing regulations is the responsibility 
of the Company’s Management including the preparation and maintenance of all the relevant records and documents. 
This responsibility includes the design, implementation and maintenance of internal control and procedures to ensure the 
compliance with the conditions of Corporate Governance stipulated in the Listing Regulations.
Auditors’ Responsibility
4.	
Our examination was limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance 
of the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements 
of the Company.
5.	
Pursuant to the requirements of the Listing Regulations, it is our responsibility to provide a reasonable assurance whether the 
Company has complied with the conditions of Corporate Governance as stipulated in Listing Regulations for the year ended 
31st December 2021.
6.	
We conducted our examination of the above corporate governance compliance by the Company in accordance with the 
Guidance Note on Reports or Certificates for Special Purposes (Revised 2016) and Guidance Note on Certification of 
Corporate Governance both issued by the Institute of the Chartered Accountants of India (the “ICAI”), in so far as applicable 
for the purpose of this certificate. The Guidance Note requires that we comply with the ethical requirements of the Code of 
Ethics issued by the ICAI.
7.	
We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality Control for Firms 
that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements.
Opinion
8.	
In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company 
has complied with the conditions of Corporate Governance as stipulated in the above-mentioned Listing Regulations.
9.	
We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or 
effectiveness with which the management has conducted the affairs of the Company.
Restriction on Use
10.	 The certificate is addressed and provided to the Members of the Company solely for the purpose of enabling the Company to 
comply with the requirement of the Listing Regulations and should not be used by any other person or for any other purpose. 
Accordingly, we do not accept or assume any liability or any duty of care for any other purpose or to any other person to 
whom this certificate is shown or into whose hands it may come without our prior consent in writing.
	
For B S R & Co. LLP
	
Chartered Accountants
	
Firm Registration No.: 101248W/W-100022
	
	 	
Vikram Advani
Place	:	Gurugram	
Partner
Date	 :	17th February 2022	
Membership No.: 091765
	
	 	
UDIN: 22091765ACXLHY3102

109
NESTLÉ INDIA LIMITED
ANNEXURE - 2 TO THE BOARD’S REPORT
ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES 
1.	
Brief outline on CSR Policy of the Company
Driven by the purpose - ‘We unlock the power of food to enhance quality of life for everyone, today and for generations to 
come’, the Company is mindful of the needs of the communities and strives to make a positive difference and create maximum 
value for the society. The Company’s efforts in society are focussed on the three pivotal ambitions of enabling healthier 
and happier lives for individuals and families, on helping develop thriving and resilient communities, and on stewarding the 
planet’s natural resources for future generations. It is firmly rooted in a robust set of principles and values based on respect.
Your Company believes that the biggest opportunity is partnership. It continues to engage with stakeholders including 
communities, academia, civil society, expert organisations and would take up such CSR activities that have been aligned 
with national priorities such as health, education, livelihood, water and sanitation, environment etc.
Your Company’s commitment to the society is sincere and longstanding. The CSR Policy of the Company is available on the 
website (www.nestle.in/investors/policies). While the focus of CSR efforts will be in the areas around Company operations, 
the Company also undertakes projects where societal needs are high or in special situations (such as in the case of natural 
calamities/ disasters including Covid relief, etc.).
Your Company believes that it has an essential role to play during the COVID-19 pandemic and is deeply committed to its 
responsibility to people in this hour of need. On the ground, your Company is mobilizing substantial local relief efforts in the 
communities where it operates and in the areas where relief was most required. Through the key CSR programmes including 
Nestlé Healthy Kids Programme, Project Jagriti, Project Vriddhi and Project Serve Safe Food - social media and phone calls in 
collaboration with NGO partners have been used to educate community members on the precautions to be taken to prevent 
COVID-19 pandemic. The on-going CSR programmes have been transformed, navigating new realties and working tirelessly 
to ease the suffering and ensuring beneficiaries of the societal initiatives are not left behind.
2.	
Composition of CSR Committee:
Sl. No.
Name of Director
Designation/
Nature of Directorship
Number of meetings of 
CSR 
Committee 
held 
during the year
Number of meetings 
of CSR Committee 
attended during the 
year
1
Dr. Swati Ajay Piramal
Chairperson (Independent 
Director)
3
1
2
Mr. Suresh Narayanan
Member (Chairman & Managing 
Director)
3
3
3
Ms. Rama Bijapurkar
Member (Independent Director)
3
2
4
Mr. David Steven McDaniel
Member (Executive Director – 
Finance & Control and CFO)
3
3
3.	
Provide the web-link where Composition of CSR committee, CSR Policy and CSR projects approved by the board are  
	
disclosed on the website of the company.
Keeping with the intent of CSR Policy, the Company has a tradition of executing CSR projects that achieve demonstrable 
outcomes having a significant impact on society. The projects include nutrition, health and breastfeeding awareness 
programmes; plastic waste management awareness; providing access to clean drinking water and sanitation; enhancing the 
livelihood of street food vendors and the initiative of village adoption for integrated and holistic development. Building on 
these efforts, your Company joined hands with credible NGOs, implementing partners and authorities engaged in providing 
relief efforts in the communities impacted by COVID-19 pandemic across various states in India. Recognizing the need for 
oxygen support for COVID-19 patients, Your Company set up oxygen plants near five of its factories in Punjab (Moga), 
Himachal Pradesh (Tahliwal), Uttarakhand (Pantnagar), Gujarat (Sanand) and Karnataka (Nanjangud).

110
The web-links are as follows:
•	
Composition of CSR Committee: https://www.nestle.in/investors/directorsandofficers 
•	
CSR Policy and Projects: https://www.nestle.in/investors/policies
4	
Provide the details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of rule 8 of the Companies  
	
(Corporate Social Responsibility Policy) Rules, 2014, if applicable (attach the report).
The Company in line with sub rule (3) of rule 8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014, shall 
initiate steps to conduct impact assessment of CSR Projects through an independent agency from financial year 2022 for 
applicable projects. There are no projects completed after 22nd January 2021 for which impact assessment is applicable for 
financial year 2021.
5.	
Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies (Corporate Social  
	
Responsibility Policy) Rules, 2014 and amount required for set off for the financial year, if any.
Sl. No.
Financial Year
Amount available for set-off  from preceding 
financial years (in ` Million)
Amount required to be set- off for the financial 
year, if any (in ` Million)
None
6.	
Average net profit of the company as per section 135(5): ` 26,376 million
7.	
a)	
Two percent of average net profit of the company as per section 135(5): ` 527.5 million
	
b)	
Surplus arising out of the CSR projects or programmes or activities of the previous financial years: Nil
	
c)	
Amount required to be set off for the financial year, if any: Nil
	
d)	
Total CSR obligation for the financial year (7a+7b- 7c): ` 527.5 million
8.	
a) 	
CSR amount spent or unspent for the financial year:
Total Amount 
Spent for the 
Financial Year 
(in ` Million)
Amount Unspent (in ` Million)
Total Amount transferred to Unspent 
CSR Account as per section 135(6)
Amount transferred to any fund specified under Schedule VII 
as per second proviso to section 135(5)
Amount
Date of transfer
Name of the Fund
Amount
Date of transfer
534
Not applicable
	
b)	
Details of CSR amount spent against ongoing projects for the financial year:

111
NESTLÉ INDIA LIMITED
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
Sl. 
No.
Name of the 
Project
Item 
from the 
list of 
activities 
in 
Schedule 
VII to 
the Act
Local 
area 
(Yes/
No)
Location of the project
Project 
duration
Amount 
allocated 
for the 
project 
(in ` 
Million)
Amount 
spent 
in the 
current 
financial 
Year 
(in ` 
Million)
Amount 
transferred 
to Unspent 
CSR 
Account 
for the 
project as 
per Section 
135(6) (in 
` Million)
Mode of 
Impleme 
ntation	
- Direct 
(Yes/
No)
Mode of Implementation 
– Through Implementing 
Agency
State
District
Name
CSR 
Registration 
number
1. 
1a)
Project 
Jagriti
i
Yes
Delhi, Rajasthan, 
Uttar Pradesh, 
Maharashtra, 
Himachal Pradesh
West Delhi, 
Lucknow, 
Banda, 
Kaushambi, 
Varanasi, 
Allahabad, Sri 
Ganganagar, 
Churu, Nagpur, 
Mandi, 
Chamba
Duration: 
01/02/2019 
to 
31/01/2022
42.8
42.8
NA
No
MAMTA- 
Health 
Institute for 
Mother and 
Child
CSR000 
01978
1b)
Odisha
Balangir, 
Nuapada
Duration: 
01/02/2020 
to 
31/01/2022
13.1
13.1
2. 
2a)
Nestlé 
Healthy Kids 
Programme
i
Yes
Bihar, Gujarat
Patna, 
Ahmedabad
Duration: 
01/04/2021 
to 
31/03/2022
13.7
13.7
NA
No
Magic 
Bus India 
Foundation
CSR000 
01330
2b)
Punjab, Himachal 
Pradesh, Gujarat, 
Karnataka
Ludhiana 
Kangra 
Ahmedabad 
Mysuru
Duration 
2021 to 
2022
1.0
1.0
NA
No
Punjab 
Agricultural 
University,
CSR000 
04505
CSK 
Himachal 
Pradesh 
Agriculture 
University,
CSR000 
14404
Gujarat 
University,
CSR000 
02281
University 
of 
Agricultural 
Sciences
CSR000 
16598

112
3
Clean 
Drinking 
Water
i
Yes
Haryana; Tamil 
Nadu; Punjab; 
Rajasthan; 
Maharashtra; 
Karnataka; West 
Bengal
Panipat, 
Sonipat, 
Karnal, Jind, 
Gurgaon, 
Nilgiris, 
Barnala, Moga, 
Ferozepur, 
Ludhiana, 
Faridkot,  Tarn 
Taran, Jaipur, 
Chittorgarh, 
Pali, Dholpur, 
Nagaur, 
Alwar, Karauli,  
Bikaner, 
Barmer, Ajmer, 
Thane, Palghar, 
Mysuru, 
Kolkata
Duration: 
2019, 
2020, 
2021, 2022 
for various 
locations
8.5
8.5
NA
No
Enable 
Health 
Society
CSR000 
02965
4
Employee 
Volunteering 
Programme
i, iv
Yes
Delhi, Haryana 
Maharashtra, West 
Bengal, Tamil Nadu
Delhi, Gurgaon, 
Mumbai, 
Kolkata, 
Chennai
Duration: 
15/06/2021 
to 
14/05/2022
0.4
0.4
NA
Yes
Mitra 
Technology 
foundation 
(i-volunteer)
CSR000 
00698
5. 
5a)
Hilldaari
iv
Yes
Uttarakhand
Dehradun
Duration: 
15/11/2019 
to 
31/03/2022
6.7
6.7
NA
No
Stree Mukti 
Sanghatana
CSR000 
01126
5b)
Uttarakhand
Nainital
Duration: 
11/11/2019 
to 
10/11/2022
8.1
8.1
5c)
Himachal Pradesh
Chamba
Duration: 
01/04/2021 
to 
14/01/2022
3.4
3.4
5d)
Goa
South Goa
Duration: 
01/07/2020 
to 
30/06/2023
9.7
9.7
5e)
Maharashtra
Satara
Duration: 
11/11/2020 
to 
10/11/2023
8.9
8.9
5f)
Kerala
Idukki
Duration: 
25/01/2021 
to 
24/01/2022
7.9
7.9
6.
Project 
Serve Safe 
Food
ii
No
Bihar
Gaya
Duration: 
1/10/2021 
to 
31/12/2022
0.2
0.2
NA
No
Nidan
CSR000 
02619
7. 
7a)
Project 
Vriddhi
x
No
Haryana
Nuh
01/04/2019 
to 
31/03/2022
0.7
0.7
NA
No
S.M. Sehgal 
Foundation
CSR000 
00262
7b)
01/06/2021 
to 
31/05/2024
3.0
3.0
Total
128.1
128.1

113
NESTLÉ INDIA LIMITED
	
c)	
Details of CSR amount spent against other than ongoing projects for the financial year:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
Sl. 
No.
Name of the 
Project
Item from 
the list of 
activities 
in 
schedule 
VII to the 
Act
Local  
area 
(Yes/ 
No)
Location of the project
Amount 
spent for 
the project 
(in ` 
Million)
Mode of 
implementation 
-Direct 
(Yes/No)
Mode of implementation – 
Through implementing agency
State
District
Name
CSR 
registration 
number
1. 
1a)
Nestlé 
Healthy Kids 
Programme
i
Yes
Bihar, Gujarat
Patna, Ahmedabad
6.7
No
Magic 
Bus India 
Foundation
CSR00001330
1b)
Andhra Pradesh, 
Assam, Chhattisgarh, 
Delhi, Gujarat, 
Haryana, Jammu 
& Kashmir, 
Jharkhand, Ladakh, 
Karnataka, Kerala, 
Madhya Pradesh, 
Maharashtra, 
Odisha, Punjab, 
Rajasthan, Tamil 
Nadu, Telangana, 
Uttar Pradesh, West 
Bengal, Mizoram
East Delhi, South Delhi, North 
Delhi, Jaipur, Dholpur, Ajmer, 
Karnal, Rohtak, Ludhiana, 
Lucknow, Jammu, Leh, Mysore, 
Raichur, Vishakapatnam, 
Rajahmudry, Hyderabad, 
Ramanathpuram, Chennai, 
Wayanad, Kochi, Kolkata, 
Guwahati, Mamit, Raipur, 
Keonjhar, Ranchi, Mumbai, Pune, 
Gadchiroli, Vidisha, Khandwa, 
Bharuch
98.4
2.
Clean 
Drinking 
Water
i
Yes
Punjab, Himachal 
Pradesh, Goa, 
Karnataka
Moga, Taran Taran, Faridkot, 
Barnala, Firozpur, Ludhiana, 
Bhatinda, Amritsar, Una, North 
Goa and South Goa, Mysuru
18.8 
Yes
3.
Sanitation
i
Yes
Punjab, Haryana, 
Uttarakhand, 
Himachal Pradesh, 
Karnataka, 
Kerala, Rajasthan, 
Maharashtra, 
Goa, Tamil Nadu, 
Telangana, Odisha
Moga, Barnala, Faridkot, Ferozpur, 
Panipat, Udham Singh Nagar, Una, 
Mysuru, Wayanad, Ajmer, Barmer, 
Jhalawar, Jaisalmer, Palghar and 
Kolhapur, South Goa and North 
Goa, Nilgiris, Salem,  Siddipet, 
Sangareddy, Ranga Reddy, Khorda
38.7 
Yes
4.
Park 
Maintenance
iv
Yes
Punjab, Himachal 
Pradesh
Moga, Una
1.0
Yes
5.
Project Serve 
Safe Food
ii
No
Tamil Nadu, Uttar 
Pradesh
Kancheepuram, Chengalpet, 
Salem, Lucknow, Varanasi
6.9
No
Nidan
CSR00002619

114
6.
Disaster 
management 
and Covid-19 
Relief Efforts
i and xii
Yes
Assam, Bihar, 
Chandigarh, Delhi, 
Gujarat, Jharkhand, 
Himachal Pradesh, 
Karnataka, 
Madhya Pradesh, 
Maharashtra, Odisha, 
Punjab, Rajasthan, 
Tamil Nadu, Uttar 
Pradesh, Uttarakhand
Hyderabad, Nellore, Vijayawada, 
Tirupati, Vishakapatnam,  Itanagar, 
Jorhat, Sivasagar, Tinsukia, 
Dibrugarh, Nagaon, Cachar, 
Kamrup, Kamrup Metropolitan, 
Kokrajhar, West Karbi Anglong, 
Jamui, Patna, Muzaffarpur, Gaya, 
Bhagalpur, Vaishali, Durg, North 
Delhi, East Delhi, West Delhi, 
North East Delhi, North Goa, 
Ahmedabad, Surat, Bhavnagar, 
Bhuj, Baroda, Panipat, Solan, Una, 
Dhanbad, Ranchi, Hazaribagh, 
Bokaro, Dumka, Singhbhum, 
Tumkur, Devanahalli, Bangalore, 
Bidar, Gulbarga, Yadagiri, Gadag, 
Bellary, Mandya, Thrissur, 
Ernakulam, Thiruvananthapuram, 
Idduki, Mumbai, Thane, Kolhapur, 
Wardha, Pune, Nagpur, East 
Imphal,West Imphal,  East 
Khasi Hills, South- west Khasi, 
Indore, Jabalpur, Gwalior, 
Bhopal, Ujjain, Kohima, Dimapur, 
Cuttack, Murshidabad, Ganjam, 
Sambalpur, Rayagada, Koraput, 
Malkangiri, Kalahandi, Khordha, 
Puri, Sundergarh, Moga, Barnala, 
Chandigarh(UT), Jaipur, Jodhpur, 
Bikaner, East Sikkim, Malkajgiri, 
Kamareddy, Hyderabad, Chennai, 
Mysore, Nilgiris, Coimbatore, 
Kanyakumari, Puducherry(UT), 
Chengalpatu, Tiruvallur, 
Pudukottai, Mayiladuthurai, 
Tiruchirappalli, Madurai, 
Thanjavur, Dindigul, Tuticorin, 
Ramnathapuram, Krishnagiri, 
Virudhunagar, Sivaganga, West 
Tripura, North Tripura, Dehradun, 
Nainital, Haridwar, Udham Singh 
Nagar, Varanasi, Gautam Budha 
Nagar, Ghaziabad, Mathura, 
Bankura, North 24 Parganas, 
Darjeeling, Jalpaiguri, Howrah, 
Burdwan, South 24 Parganas, 
Hooghly, Nadia 
208.7 
Yes
Akshaya Patra
Charities Aid 
Foundation
 BOSCONET 
NIDAN
INDIAN 
JAYCEES 
CHARITABLE 
TRUST
Save the 
Children India
 
Indian 
Association for 
the Blind
 
Cheshire 
Disability 
Trust
 
Stree Mukti 
Sanghatana
 
CREDIT I
CSR00000286
CSR00001692
CSR00001441
CSR00002619
CSR00007800
 
CSR00000158
CSR00005510
CSR00004844
CSR00001126
CSR00003577
Total
379.2
 
	
(d)	
Amount spent in Administrative Overheads : ` 26.7 Million
	
(e)	
Amount spent on Impact Assessment, if applicable : Not applicable
	
(f)	
Total amount spent for the Financial Year (8b+8c+8d+8e) : ` 534 Million
	
(g)	
Excess amount for set off, if any : Nil

115
NESTLÉ INDIA LIMITED
Sl. No.
Particular
Amount (in ` Million)
(i)
Two percent of average net profit of the company as per section 135(5)
 527.5
(ii)
Total amount spent for the Financial Year
534
(iii)
Excess amount spent for the financial year [(ii)-(i)]
 6.5 
(iv)
Surplus arising out of  the CSR projects or  programmes or activities of the previous 
financial years, if any
 Nil
(v)
Amount available for set off in succeeding financial years [(iii)-(iv)]
 Nil*
*The Company does not wish to carry forward any excess amount spent during the year 2021.
9.	
(a) Details of Unspent CSR amount for the preceding three financial years:	
Sl. No.
Preceding 
Financial Year.
Amount 
transferred to 
Unspent CSR 
Account under 
section 135 (6) 
(in ` Million)
Amount 
spent in the 
reporting 
Financial Year 
(in ` Million).
Amount transferred to any fund specified 
under Schedule VII as per section 135(6), if 
any.
Amount 
remaining to 
be spent in 
succeeding 
financial years. 
(in ` Million)
Name of the 
Fund
Amount 
(in ` Million).
Date of 
transfer.
Not Applicable
	
(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s):
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
Sl. 
No
Project ID.
Name of 
the Project.
Financial 
Year in
which the 
project was 
commenced.
Project 
duration.
Total amount 
allocated for	
the project (in 
` Million).
Amount 
spent on the   
project
in the 
reporting 
Financial Year
(in ` Million).
Cumulative amount 
spent at the end of 
reporting Financial 
Year. (in ` Million)
Status of the 
project -
Completed
/Ongoing.
1a)
CSR/2019/JAG/01
Project 
Jagriti
2019
01/02/2019 
to 
31/01/2022
166.9 
87.5 
154.1 
Ongoing
1b)
CSR/2020/JAG/01
2020
01/02/2020 
to 
31/01/2022
33.3 
20.1 
28.9 
Ongoing
 2)
CSR/2019/CDW/01
Clean 
Drinking 
Water
2019
2019 to 2022
59.7 
15.3 
42.8 
Ongoing
3a)
CSR/2019/HIL/01
Hilldaari
2019
15/11/2019 
to 
31/03/2022
18.0 
10.9 
17.0 
Ongoing
3b)
CSR/2019/HIL/02
2019
11/11/2019 
to 
10/11/2022
29.9 
12.8 
21.0 
Ongoing
3c)
CSR/2020/HIL/01
2020
01/07/2020 
to 
30/06/2023
33.1 
14.4 
17.1  
Ongoing
3d)
CSR/2020/HIL/02
2020
11/11/2020 
to 
10/11/2023
31.7 
11.6 
11.6  
Ongoing
4)
CSR/2019/VRI/01
Project 
Vriddhi
2019
01/04/2019 
to 
31/03/2022
10.7 
2.3  
10 
Ongoing
Total
383.3
174.9
302.5

116
10.	 In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired through CSR  
	
spent in the financial year (asset-wise details): Not Applicable
a)	
Date of creation or acquisition of the capital asset(s): Not Applicable
b)	
Amount of CSR spent for creation or acquisition of capital asset: Not Applicable
c)	
Details of the entity or public authority or beneficiary under whose name such capital asset is registered, 
	
their address etc: Not Applicable
d)	
Provide details of the capital asset(s) created or acquired (including complete address and location of the capital asset): 
	
Not Applicable
11. 	 Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per section 135(5): 
	
Not Applicable
Swati Ajay Piramal 
Chairperson – Corporate Social 
Responsibility Committee
 Place: Mumbai
Suresh Narayanan 
Chairman and Managing Director
Place: Gurugram
On behalf of the Board of Directors
Date: 17th February 2022

117
NESTLÉ INDIA LIMITED
ANNEXURE – 3 TO THE BOARD’S REPORT
BUSINESS RESPONSIBILITY REPORT
SECTION A: GENERAL INFORMATION ABOUT THE COMPANY
Sr. No.
Particulars
Details
1.
Corporate Identity Number (CIN) of the Company
L15202DL1959PLC003786
2.
Name of the Company
NESTLÉ INDIA LIMITED
3.
Registered address
100 / 101, World Trade Centre, Barakhamba Lane, 
New Delhi – 110001
4.
Website
www.nestle.in
5.
E-mail id
investor@in.nestle.com
6.
Financial Year reported
31-12-2021
7.
Sector(s) that the Company is engaged in (industrial 
activity code-wise)
Food Processing Industry (covered under various codes as specified 
under NIC 1987 covering food products)
8.
List three key products/services that the Company 
manufactures/ provides (as in balance sheet)
Product
ITC Code
1.	
Milk Products and Nutrition
0402, 1901 
2.	
Prepared Dishes and Cooking Aids
1902, 2103
3.	
Beverages
2101
9.
Total number of locations where business activity is 
undertaken by the Company
Please also refer to the Corporate Information page of the Annual 
Report 2021
(a)	
Number of International Locations (Provide 
details of major 5)
Exports to Bangladesh, Canada, USA, UK and UAE
(b)	
Number of National Locations
9 manufacturing locations, 4 sales branches, Head office and nation-
wide sales and distribution network
10.
Markets served by the Company: Local/ State/ 
National/ International
All India and 30 international markets
SECTION B: FINANCIAL DETAILS OF THE COMPANY
Sr. No.
Particulars
Details
1.
Paid up Capital (INR)
` 964.2 Million
2.
Total Turnover (INR)
` 146,337.2 Million
3.
Total profit after taxes (INR)
` 21,448.6 Million 
4.
Total Spending on Corporate Social Responsibility 
(CSR) as percentage of profit after tax (%)
Total spending on CSR is 2% of the average profit after tax of the 
past 3 years. This is detailed in the Annual Report of CSR Activities, 
ANNEXURE – 2 to the Board’s Report.
5.
List of activities in which expenditure in 4 above 
has been incurred
List of CSR activities are detailed in the Annual Report of CSR Activities, 
ANNEXURE – 2 to the Board’s Report.
SECTION C: OTHER DETAILS
Sr. No.
Particulars
Details
1.
Does the Company have any Subsidiary Company/ 
Companies?
No
2.
Do the Subsidiary Company/Companies participate 
in the BR Initiatives of the parent Company? If 
yes, then indicate the number of such subsidiary 
Company(s).
Not Applicable
3.
Do any other entity/entities (e.g. suppliers, 
distributors etc.) that the Company does business 
with, participate in the BR initiatives of the 
Company? If yes, then indicate the percentage of 
such entity/entities? 
[Less than 30%, 30-60%, More than 60%].
The other entity/entities including stakeholders such as suppliers,
distributors, farmers participate in the BR initiatives of the Company 
under various programmes initiated by the Company. With numerous 
stakeholders working across the Company’s different locations and 
operations, it is difficult to estimate the percentage of such initiatives.

118
SECTION D: BR INFORMATION
Sr. No.
Particulars
Details
1.
Details of Director/Directors responsible for BR
(a)
Details of the Director/Director responsible for implementation of 
the BR policy/policies
DIN
08662504
Name
Mr. David Steven McDaniel  
Designation
Executive Director-Finance & Control 
and CFO
(b)
Details of the BR head
DIN Number 
(if applicable)
Not Applicable
Name
Mr. Sanjay Khajuria
Designation
Director- Corporate Affairs
Telephone number +91-124-3940000
e-mail id
creatingsharedvalue.in@in.nestle.com
2.
Principle-wise (as per NVGs) BR Policy/policies  
(a)
Details of Compliances (Reply in Y/N)
No.
Questions
P1 
P2
P3
P4
P5
P6
P7
P8
P9
1.
Do you have a policy/ policies for…
Y
Y
Y
Y
Y
Y
Y
Y
Y
2.
Has the policy being formulated in consultation with the relevant 
stakeholders?
Y
Y
Y
Y
Y
Y
Y
Y
Y
3.
Does the policy conform to any national/ international standards? 
If yes, specify?@
Y
Y
Y
Y
Y
Y
Y
Y
Y
4.
Has the policy being approved by the Board? 
Y
Y
Y
Y
Y
Y
Y
Y
Y
5.
If yes, has it been signed by MD/owner/CEO/appropriate Board 
Director?
Y
Y
Y
Y
Y
Y
Y
Y
Y
6.
Does the Company have a specified committee of the Board/ 
Director/ Official to oversee the implementation of the policy?
Y
Y
Y
Y
Y
Y
Y
Y
Y
7.
Indicate the link for the policy to be viewed online?
Y
Y
Y
Y
Y
Y
Y
Y
Y
8.
Has the policy been formally communicated to all relevant 
internal and external stakeholders?
Y
Y
Y
Y
Y
Y
Y
Y
Y
9.
Does the Company have an in-house structure to implement the 
policy/ policies?
Y
Y
Y
Y
Y
Y
Y
Y
Y
10.
Does the Company have a grievance redressal mechanism related 
to the policy/ policies to address stakeholders’ grievances related 
to the policy/ policies?
N
N
N
N
N
N
N
N
N
(b)
If answer to the question at serial number 1 against any principle, is ‘No’, please explain why: (Tick up 
to 2 options)
Not Applicable
3.
Governance related to BR
(a)
Indicate the frequency with which the Board of Directors, 
Committee of the Board or CEO to assess the BR performance 
of the Company.
The Board/Committee usually assess the BR performance 
at least annually.
(b)
Does the Company publish a BR or a Sustainability Report? What 
is the hyperlink for viewing this report? How frequently it is 
published? 
Yes, the BRR 2021 is part of the Annual Report, which is 
available on the website of the Company.
It is available at:
https://www.nestle.in/investors/stockandfinancials/
annualreports and is published annually.
@The policies have been derived and adopted from the Nestlé Global Policies and are aligned as per local requirements to safeguard the interests 
of all its stakeholders.

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NESTLÉ INDIA LIMITED
SECTION E: PRINCIPLE-WISE PERFORMANCE 
Principle 1: Ethics, Transparency and Accountability
1.	
Does the policy relating to ethics, bribery and corruption cover only the Company? Yes/ No. Does it extend to the Group/
Joint Ventures/ Suppliers/Contractors/NGOs /Others?
The Nestlé India Code of Business Conduct includes the Company’s policy on ethics, bribery and corruption covering the 
Company and all its vendors. Other significant documents from the Nestlé Group, which define the standard of behaviour 
of the Company, are Nestlé Corporate Business Principles, Nestlé Purpose and Values and Nestlé Responsible Sourcing 
Standard.
2.	
How many stakeholder complaints have been received in the past financial year and what percentage was satisfactorily 
resolved by the management? If so, provide details thereof, in about 50 words or so.
During the year, two complaints were received from the external stakeholders on the allegations of bribery and corruption. 
Both the complaints were investigated and consequential action taken. No stakeholder complaint was pending at the end 
of the year 2021.
Principle 2: Product Life Cycle Sustainability
1.	
List up to 3 of your products or services whose design has incorporated social or environmental concerns, risks and/or 
opportunities
The Company has a legacy of providing consumers with high quality products under four major categories - Milk Products 
and Nutrition, Beverages, Prepared Dishes and Cooking Aids, Chocolates and Confectionary. The Company has a range of 
Popularly Positioned Products (PPP) fortified with micronutrients which provide nutritional value at an affordable cost. These 
include the following among others:
•	
MAGGI Masala Noodles is fortified with the goodness of Iron. Each serve (60g & 70g) meets 17% Iron RDA* for adults 
and 15% Iron RDA* for 16-17 year old teenagers (ICMR, 2020). MAGGI Masala Noodles (serve size-75g) provides 
18% Iron RDA* for adults and 16% Iron RDA* for teenagers. (*Recommended Dietary Allowances for Indians, 
ICMR, 2020).
•	
MAGGI Masala-ae-Magic Seasoning mix and Masala-vin-Magic is designed to help increase the consumption of 
nutrients like vitamin A, iron & iodine in an easy and tasty way. The product is an economically viable option that 
can be used at household level to help in home fortification of daily consumed foods like vegetables, dal and non-
vegetarian preparations. Its easy to use format helps (per serve of 2g) provide 15% of the daily requirement* of 
Vitamin A, Iron and Iodine (*Recommended Dietary Allowances for Adult Sedentary Male as per Nutrient requirement 
and recommended daily allowance for Indians, ICMR, 2010). 
•	
Nestlé a+ Nourish Milk fortified with vitamin A & D. This milk undergoes 61 quality checks and is passed through a 
unique flash heat treatment that makes the milk germ-free and preserves its nutrients. 1 glass (180 ml) helps meet 8% 
RDA* of Vitamin A & 9% RDA* of Vitamin D. (*Recommended Dietary Allowances for Adult Sedentary Male as per 
Nutrient requirement and recommended daily allowance for Indians, ICMR, 2010).
2.	
For each such product, provide the following details in respect of resource use (energy, water, raw material etc.) per unit of 
product (optional):
(a)	
Reduction during sourcing/production/ distribution achieved since the previous year throughout the value chain? and 
(b) Reduction during usage by consumers (energy, water) has been achieved since the previous year?
	
The Company follows a series of Environmental Performance Indicators to monitor its efforts for sustainable use of 
natural resources in manufacturing. The Company is committed to conservation and optimal utilisation of all resources, 
reducing waste to zero and full recovery of unavoidable by-products. 
	
During the period from 2006 to 2021, for every ton of production, the Company has reduced the usage of energy by 
around 43%, water usage by around 52%, generation of waste water by around 67%, reduction in specific direct 
greenhouse gas emissions by 57%.

120
3.	
Does the Company have procedures in place for sustainable sourcing (including transportation)? If yes, what percentage of 
your inputs was sourced sustainably? Also, provide details thereof, in about 50 words or so.
The Company chooses its suppliers through strictly laid out procedures and engages with them according to the non-
negotiable standards described in the Nestlé Responsible Sourcing Standard. The requirements of Business Integrity, 
Human Rights (labour standards), Health and Safety and Sustainable environmental standards in their business activities, 
production processes, services provision and their own purchasing procedures, as enshrined in the Nestlé Responsible 
Sourcing Standard, apply to all suppliers.
4.	
Has the Company taken any steps to procure goods and services from local and small producers, including communities 
surrounding their place of work? If yes, what steps have been taken to improve their capacity and capability of local and 
small vendors?
The Company works with farming communities to ensure sustainable production in the long-term. The Company touches 
the lives of over 200,000 farmers and practices a strong preference for local procurement of raw materials. In addition 
to collecting milk and implementing the Nestlé milk district model successfully to ensure a stable livelihood for local dairy 
farmers, the Company supports the development of milk farmers by assisting them to improve milk productivity and quality 
through technical assistance, providing veterinary services, medicines at no profit basis and promotion of sustainable 
agricultural practices. During the challenging time of COVID-19, the Company continued to procure milk which was offered 
for sale by dairy farmers even during the lockdown. Social distancing and precautionary measures are followed during milk 
collection. The Company engaged with over 150 milk tank drivers for creating awareness on:
•	
Maintaining social distancing at collection centers and while delivering milk inside the factory.
•	
Wearing masks while driving, at collection centers and while emptying tankers at factory premises.
•	
Washing hands before handling milk.
As part of The NESCAFÉ Plan, the Company trains coffee farmers to develop their agricultural practices in terms of quality, 
productivity and sustainability while supporting them in obtaining 4C (Common Code for the Coffee Community) certification 
for better coffee prices. The NESCAFÉ Plan sets out to bring about  a positive and sustained change in: 
•	
The livelihood of coffee farmers and their families. 
•	
The sustainable management of landscapes linked to the value chain. 
•	
Enhanced biodiversity in coffee farms with intercropping. 
The NESCAFÉ Plan has three platforms, connecting to farmers, connecting to communities and connecting to the planet, 
with the objective of ensuring the future of high quality coffee, to remain available and affordable today and in the future. 
During the COVID-19 pandemic, farmer engagements were continued virtually where on-line soil fertility trainings were 
conducted by Nestlé agronomists. The Company in collaboration with the Indian Institute of Spices Research (IISR) and 
Agricultural Universities conducted virtual trainings on intercropping and composting using Coffee Husk. Till 2021, the 
Company reached out to around 4,400 farmers through trainings, technical assistance, medical camp, soil test activities. 
As a part of The MAGGI Spice Plan, the Company is now sourcing 8 key spices from suppliers with “Backward Integration 
Programs” (BIP) in place (farmer monitoring, focused on practices to ensure MRL compliance-food safety). Supplier BIP 
includes field extension support for integrated pest management (IPM) programmes of participating farmers e.g., daily/
weekly visits to farmer fields and data gathering. This provides a good foundation for effective action. The Company 
suppliers are key partners in developing responsibly sourced supply chains of spices. 
The Company has a dedicated supplier development team that works through the Nestlé – Farmer – Supplier model to create 
sustainable local sourcing. The team’s objectives include less reliance on imports, supporting sustainable quality and creating 
a wider, more flexible supply base. In 2021, the Company supported more than 60 suppliers through technical assistance, 
added 19 new suppliers/ supplier locations and localized 8 more raw materials. The team also works on developing local 
vendors through technical assistance to meet the desired quality/ regulatory norms for supply to other Nestlé markets.
5.	
Does the Company have a mechanism to recycle products and waste? If yes what is the percentage of recycling of products 
and waste (separately as <5%, 5-10%, >10%)?  Also, provide details thereof, in about 50 words or so.
As a responsible manufacturer of food products, the Company has initiated post-consumer waste management projects

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NESTLÉ INDIA LIMITED
with waste management service providers as a part of Extended Producer Responsibility (EPR) to collect, segregate and 
recycle/recover waste in a sustainable way. This initiative not only ensures compliance to “Plastic Waste Management 
Rules’ 2016”, as amended in 2018 but also facilitates reinforcement of positive attitude and behaviour towards responsible 
waste disposal through consumer awareness. All the packaging carries anti-litter logo for consumer awareness. For easy 
segregation and recycling, packaging identification logo is placed on the plastic based packaging material.   
The Company follows 3R’s principles i.e. ‘Reduce’, ‘Recycle’ and Recover to be environmentally sustainable:
1.	
REDUCE: The Company ensures continuous optimization of packaging by source reduction, ecodesign and value 
engineering. The Company launched RTD tetrapaks with paper straw replacing plastic straw for the first time in the 
market. 
2.	
RECYCLE: The Company encourages the use of recycled material wherever applicable e.g., 100% recycled paper 
in shippers.  The Company successfully expanded the monomaterial journey in flexible packaging for Noodles and 
Chocolates.
3.	
RECOVER: The Company supports initiatives to recover used packaging. This year the Company responsibly managed 
approximate 23,600 Metric tonnes of post-consumer plastic packaging waste as a part of our commitment as Extended 
Producers’ Responsibility.
Principle 3: Employee Wellbeing
Sr. No.
Particulars
Details
1.
Please indicate the Total number of employees
7,910
2.
Please indicate the Total number of employees hired on 
temporary/contractual/casual basis
8,878
3.
Please indicate the Number of permanent women employees 1,141
4.
Please indicate the Number of permanent employees with 
disabilities
5 
5.
Do you have an employee association that is recognised by 
management
The Company has 12 Unions in 8 factories in India
6.
What percentages of your permanent employees are 
members of this recognised employee association?
55% of the total strength of permanent employees are 
unionized.
7.
Please indicate the Number of complaints relating to child 
labour, forced labour, involuntary labour, sexual harassment 
in the last financial year and pending, as on the end of the 
financial year. 
No complaints relating to child labour, forced labour, 
involuntary labour and sexual harassment are pending 
as of end of the year 2021
8.
What percentage of your under mentioned employees were 
given safety and skill up-gradation training in the last year?
(a)
Permanent Employees
99%
(b)
Permanent Women Employees
99%
(c)
Casual/Temporary/Contractual Employees
100% receive training as part of their induction
(d)
Employees with Disabilities
100%
Principle 4: Stakeholder Engagement
1.	
Has the Company mapped its internal and external stakeholders?
Yes, as a result of regular and extensive stakeholder engagement over many years, the Company’s business operations 
have evolved, balancing business priorities and responsibility towards economic, environmental and social sustainability. 
The Company builds trust through productive relationships, fosters working partnerships and considers stakeholders both 
internal and external as integral to its business.

122
2.	
Out of the above, has the Company identified the disadvantaged, vulnerable & marginalized stakeholders?
Yes.
3.	
Are there any special initiatives taken by the Company to engage with the disadvantaged, vulnerable and marginalized 
stakeholders?
The Company engages with milk and coffee farmers, among others, through farmer trainings to increase efficiency in 
productivity and quality, optimise costs and improve social and environmental impact thereby ensuring agriculture remains 
an attractive place to live, work and invest in, for generations to come. Over the years, the Company has reached out to over 
70,000 women farmers engaged in dairy farming to improve milk quality and productivity by providing technical assistance 
and training on breeding, feeding, hygiene, quality and veterinary services.
The Company stepped up to help those in need during the pandemic, with initiatives that focused on safeguarding the 
wellbeing of community. Primary beneficiaries of the relief efforts include vulnerable communities such as street vendors, 
Mumbai dabbawallas, migrant laborers, daily wagers, people with disabilities, waste professionals, slum dwellers etc. The 
Company is making conscious efforts to reduce the impact of the COVID-19 pandemic on the food security of migrant 
workers and daily wagers by distributing cooked meals, grocery kits.
Feeding Meals: Your Company committed funds towards feeding programs for less privileged sections of society through 
participation with NGOs engaged in this along with distribution of essential groceries to the needy. Till end 2021, the 
Company has contributed to Akshaya Patra’s COVID-19 relief operations, which has helped serve over 4.4 million cooked 
meals. 
Distribution of dry rations: Your Company is providing dry rations in communities where required. The Company engaged 
with the Indian Association for the Blind, Save the Children India, Bosconet, Indian Jaycees Charitable Trust, Stree Mukti 
Sanghatana and Cheshire Disability Trust for providing ration kits to the needy. We also collaborated with NIDAN to provide 
ration kits to distressed street vendors. Through our Project Hilldaari and in collaboration with local stakeholders we have 
reached out to waste professionals in the select towns and enabled them to face the crisis by providing essentials, creating 
awareness and equipping them with safety gears. Till 2021, about 124,500 grocery kits have been provided. 
Additional initiatives are detailed further in ANNEXURE – 2 to the Board’s Report.
Principle 5: Human Rights
1.	
Does the policy of the Company on human rights cover only the Company or extend to the Group/Joint Ventures/Suppliers/
Contractors/NGOs/Others?
The Policy covers the Company and extends to all suppliers, contractors and associates.
2.	
How many stakeholder complaints have been received in the past financial year and what percent was satisfactorily resolved 
by the management?
During the year 2021, the Company did not receive any complaints with regard to human rights.
Principle 6: Environment
1.	
Does the policy related to Principle 6 cover only the Company or extends to the Group/Joint Ventures/Suppliers/Contractors/
NGOs/others? 
The Policy covers the Company and extends to all its vendors, contractors and associates.
2.	
Does the Company have strategies/ initiatives to address global environmental issues such as climate change, global 
warming, etc? Y/N. If yes, please give hyperlink for webpage etc.
Yes. https://www.nestle.com/csv/impact/climate-change
3.	
Does the Company identify and assess potential environmental risks?
Yes. https://www.nestle.com/csv/impact/environment
4.	
Does the Company have any project related to Clean Development Mechanism? If so, provide details thereof, in about 50

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NESTLÉ INDIA LIMITED
words or so. Also, if yes, whether any environmental compliance report is filed?
Every year the Company is undertaking various initiatives to reduce Green House Gas (GHG) emissions. In the year 2021, 
total 12 Energy reduction projects were initiated in Nestlé India factories that will result in annualized savings of 19,244 GJ 
(saving of 0.51% of total annual Energy consumption) & shall be fully realized by the coming year. 
 Yes, the Company files environment compliance reports as per Pollution Control Board requirements.
5.	
Has the Company undertaken any other initiatives on – clean technology, energy efficiency, renewable energy, etc. Y/N. If 
yes, please give hyperlink for web page etc.
Yes. https://www.nestle.com/csv/impact/climate-change
As in the past, the Company continued to stress upon measures for the conservation and optimal utilisation of energy 
in all the areas of operations, including those for energy generation and effective usage of sources / equipment used 
for generation. Within the Company, there are continuous efforts towards improving operational efficiencies, minimizing 
consumption of natural resources and reducing water, energy & CO2 emissions while maximizing production volumes.
During the year 2021, approximately twelve energy reduction projects were undertaken by factories of the Company which 
will result in substantial annualized savings of 19,244 GJ (saving of 0.51% of total annual energy consumption) & shall be 
fully realized by the coming years. Some of the projects undertaken are:
•	
Steam optimization in evaporators and vacuum ovens at Moga Factory
•	
Electricity optimization in compressed air operations 
•	
Electricity optimization in HVAC operations at Bicholim
6.	
Are the Emissions/Waste generated by the Company within the permissible limits given by CPCB/SPCB for the financial year 
being reported?
Yes
7.	
Number of show cause/ legal notices received from CPCB/SPCB which are pending (i.e. not resolved to satisfaction) as on 
end of Financial Year.
During the year 2021, the Company did not receive any show cause/ legal notices from CPCB/SPCB, which are pending as 
on end of year 2021.
Principle 7: Policy Advocacy
1.	
Is your Company a member of any trade and chamber or association? If Yes, Name only those major ones that your business 
deals with:
a.	
Federation of Indian Chambers of Commerce and Industry (FICCI)
b.	
Confederation of Indian Industry (CII)
c.	
All India Food Processors Association (AIFPA)
d.	
The Associated Chambers of Commerce and Industry of India (ASSOCHAM)   
e.	
PHD Chamber of Commerce and Industry (PHDCCI)
2.	
Have you advocated/lobbied through above associations for the advancement or improvement of public good? Yes/No; if 
yes specify the broad areas (drop box: Governance and Administration, Economic Reforms, Inclusive Development Policies, 
Energy security, Water, Food Security, Sustainable Business Principles, Others): 
Yes. Your Company engages with government, regulatory authorities and relevant public bodies for the development of 
public policies in keeping with the Company’s business and its work in society, sustainability and compliance commitments. 
These include Food Regulations, Environment, Plastic Packaging and Waste Management, among others. Your Company 
engages with Government and Food Authorities to establish science-based regulations for protecting the health of consumers 
and development of other best practices in areas of food processing.

124
Principle 8: Inclusive Growth
1.	
Does the Company have specified programmes/initiatives/projects in pursuit of the policy related to Principle 8? If yes details 
thereof.
Yes. Your Company works in the areas of nutrition awareness, rural development initiatives and dissemination of scientific 
and nutrition knowledge. Further details available: https://www.nestle.in/csv
2.	
Are the programmes/projects undertaken through in-house team/own foundation/external NGO/government structures/any 
other organization?
Projects are undertaken through in-house expert teams and in partnership with like-minded expert partner organisations that 
share your Company’s ambition towards creating inclusive growth.
3.	
Have you done any impact assessment of your initiative?
Yes. Voluntary impact assessment done for the Company’s key societal projects.
4.	
What is your Company’s direct contribution to community development projects- Amount in INR and the details of the 
projects undertaken?
These are detailed in ANNEXURE – 2 to the Board’s Report.
5.	
Have you taken steps to ensure that this community development initiative is successfully adopted by the community? 
Please explain in 50 words, or so. 
These are detailed in ANNEXURE – 2 to the Board’s Report.
Principle 9: Customer/ Consumer Value
1.	
What percentage of customer complaints/consumer cases are pending as on the end of financial year?
As on end of year 2021, the Company has no pending customer complaints.
2.	
Does the Company display product information on the product label, over and above what is mandated as per local laws? 
Yes/No/N.A./Remarks(additional information)
Yes, over and above compliance with applicable product packaging and labelling requirements including declaration of 
appropriate method of preparation of products for safe and proper consumption, the Nestlé Nutritional Compass’ on the 
product pack provides transparent and easy to understand nutritional information that guides the consumer in making the 
right food choices. The Company also provides consumers with nutrition information through Guideline Daily Amounts 
(GDA) based labels icons on front of pack too.
3.	
Is there any case filed by any stakeholder against the Company regarding unfair trade practices, irresponsible advertising 
and/or anti-competitive behaviour during the last five years and pending as on end of financial year? If so, provide details 
thereof, in about 50 words or so. 
The Company does not have any stakeholder complaints with regard to unfair trade practices, irresponsible advertising and/
or anti-competitive behaviour, which are pending as at the end of year 2021.
4.	
Did your Company carry out any consumer survey/ consumer satisfaction trends?
The Company continuously carries out consumer surveys to understand consumer feedback, product satisfaction and 
preference while measuring consumer response and satisfaction regularly through the Company’s continuous and periodic 
tracking studies, covering close to 79,000 consumers during the year 2021 through a random sampling approach among 
target consumers.

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NESTLÉ INDIA LIMITED
Notes 1 to 9 corresponding to Principles 1 to 9 
Principle 1 
1.	
http://www.nestle.in/investors
2.	
http://www.nestle.com/asset-library/documents/library/documents/corporate_governance/corporate-business-principles-en.pdf 
3.	
https://www.nestle.com/csv/what-is-csv/ethical-business
Principle 2 
1.	
http://www.nestle.com/aboutus/suppliers 
2.	
https://www.nestle.in/csv/planet/supplier-engagement
3.	
https://www.nestle.in/csv/communities/responsible-sourcing
4.	
http://www.nestle.com/aboutus/quality-and-safety 
5.	
http://www.nestle.com/ask-nestle/environment/answers/nestle-climate-change 
6.	
https://www.nestle.in/csv/planet/natural-capital
7.	
https://www.nestle.in/csv/communities/coffee
Principle 3
1.	
http://www.nestle.com/asset-library/documents/library/documents/about_us/policy-on-safety-and-health-at-work.pdf 
2.	
http://www.nestle.com/Asset-Library/Documents/Library/Documents/People/Employee-relations-policy-EN.pdf 
3.	
http://www.nestle.com/asset-library/documents/library/documents/people/nestle-policy-maternity-protection.pdf 
4.	
https://www.nestle.in/csv/communities/training
Principle 4
1.	
http://www.nestle.com/csv/what-is-csv/stakeholder-engagement
Principle 5
1.	
https://www.nestle.in/csv/communities/human-rights-impacts
2.	
http://www.nestle.com/asset-library/documents/library/documents/corporate_social_responsibility/nestle-commitment-land-
rights-agriculture.pdf
3.	
http://www.nestle.com/asset-library/documents/library/documents/corporate_social_responsibility/nestle-hria-white-paper.
pdf 
4.	
http://www.nestle.com/asset-library/documents/library/documents/corporate_social_responsibility/nestle-commitment-
child-labour.pdf
Principle 6
1.	
https://www.nestle.com/csv/global-initiatives/zero-environmental-impact/climate-change-net-zero-roadmap
2.	
https://www.nestle.in/csv/planet
3.	
http://www.nestle.com/asset-library/documents/library/documents/corporate_social_responsibility/commitment-on-climate-
change-2013.pdf 
4.	
http://www.nestle.com/asset-library/documents/library/documents/corporate_social_responsibility/commitment-on-
biofuels-2013.pdf
5.	
http://www.nestle.com/asset-library/documents/library/documents/corporate_social_responsibility/nestle-commitment-
water-stewardship.pdf 
6.	
http://www.nestle.com/asset-library/documents/library/documents/corporate_social_responsibility/commitment-on-natural-
capital-2013.pdf 
7.	
http://www.nestle.com/asset-library/documents/library/documents/corporate_social_responsibility/natural-capital_soil-
soilhealth.pdf 	
8.	
http://www.nestle.com/asset-library/documents/library/documents/corporate_social_responsibility/commitment-on-
deforestation-2013.pdf

126
Principle 7
1.	
https://www.nestle.com/asset-library/documents/library/documents/corporate_governance/nestle-policy-transparent-
interactions-with-public-authorities.pdf
2.	
http://www.nestle.com/aboutus/businessprinciples/report-your-concerns
3.	
https://www.nestle.com/csv/what-is-csv/stakeholder-engagement/partnerships-alliances
Principle 8
1.	
https://www.nestle.com/csv/impact/rural-livelihoods/farmer-needs
2.	
http://www.nestle.com/asset-library/documents/library/documents/corporate_social_responsibility/nestle-commitment-
rural-development.pdf 
3.	
https://www.nestle.in/csv/planet/supplier-engagement 
4.	
https://www.nestle.in/csv/planet/access-conservation
Principle 9
1.	
http://www.nestle.com/asset-library/documents/library/documents/about_us/communication-principles.pdf 
2.	
http://www.nestle.com/asset-library/documents/library/documents/corporate_social_responsibility/nestle-marketing-
communication-children-policy.pdf 
3.	
https://www.nestle.in/nhw/understanding-food-labels 
4.	
https://www.nestle.in/nhw/understanding-food-labels/the-nestle-nutritional-compass 
5.	
http://www.nestle.com/asset-library/documents/library/documents/about_us/nestle-policy-salt.pdf
6.	
http://www.nestle.com/asset-library/documents/library/documents/about_us/nestle-policy-sugars.pdf
7.	
http://www.nestle.com/asset-library/documents/library/documents/about_us/nestle-policy-saturated-fat.pdf
8.	
http://www.nestle.com/asset-library/documents/library/documents/corporate_social_responsibility/nestle-policy-
micronutrient-fortification-foods-beverages.pdf
9.	
https://www.nestle.in/csv/individuals-families/healthy-diet
10.	 https://www.nestle.in/csv/individuals-families/nutrition-education
11.	 https://www.nestle.in/csv/individuals-families/marketing-children
	
On behalf of the Board of Directors
Date	 :	17th February 2022	
	
 Suresh Narayanan
Place	:	Gurugram	
	
 Chairman and Managing Director

127
NESTLÉ INDIA LIMITED
ANNEXURE - 4 TO THE BOARD’S REPORT
FORM NO. MR – 3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31ST DECEMBER 2021
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies 
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
To,
The Members,
Nestlé India Limited
CIN: L15202DL1959PLC003786
100/101, World Trade Centre, Barakhamba Lane, New Delhi - 110001
We have conducted Secretarial Audit of compliance with the applicable statutory provisions and adherence to good corporate 
practices by Nestlé India Limited (hereinafter called ‘the Company’) for the Financial Year ended 31st December 2021. Secretarial 
Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts / statutory compliances 
and expressing our opinion thereon. 
Based on our verification of the Company’s books and papers, minute books, forms and returns filed and other records maintained 
by the Company and also the information provided by the Company, its officers, agents and authorized representatives during the 
conduct of Secretarial Audit, we hereby report that in our opinion, the Company has, during the audit period covering the Financial 
Year ended 31st December 2021 complied with statutory provisions listed hereunder and also, that the Company has proper 
Board-processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:
We have examined the books and papers, minute books, forms and returns filed and other records maintained by the Company 
for the Financial Year ended 31st December 2021 according to the provisions of:
(i)	
The Companies Act, 2013 (‘the Act’) and the rules made thereunder; 
(ii)	
The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder;
(iii)	 The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
(iv)	 Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct 
Investment, Overseas Direct Investment and External Commercial Borrowings – Not applicable to the extent of Overseas Direct 
Investment and External Commercial Borrowings as there were no reportable events during the financial year under review. 
(v)	
The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’):
a)	
The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011; 
b)	
The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015; 
c)	
The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 – Not 
applicable as the Company has not issued any shares during the year under review;
d) 	
The Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 (up to 
12th August 2021) and The Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) 
Regulations, 2021 (with effect from 13th August 2021) – Not applicable as the Company has not issued any shares/ 
options to directors/ employees under the said guidelines/regulations during the year under review;
e)	
The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 (up to 
16th August 2021) – Not applicable as the Company has not issued any debt securities during the year under review;
f)	
The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 
regarding the Companies Act and dealing with client; – Not applicable as the Company is not registered as Registrar 
to an Issue and Share Transfer Agent during the year under review;
g)	
The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009 (up to 9th June 2021) and The 
Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021 (with effect from 10th June 2021) 
– Not applicable as the Company has not delisted/ proposed to delist its equity shares during the year under review;

128
h)	
The Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018 – Not applicable as the 
Company has not bought back/ proposed to buy-back any of its securities during the year under review; and
i)	
The Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021 (with 
effect from 16th August 2021)- Not Applicable as the Company has not issued and listed Non-convertible securities 
during the financial year under review
(vi)	 The management has identified and confirmed the following laws as being specifically applicable to the Company:
a.	
Food Safety and Standards Act, 2006, rules and regulations thereunder;
b.	
Legal Metrology Act, 2009, rules and regulations thereunder; 
c.	
Infant Milk Substitutes, Feeding Bottles and Infant Foods (Regulation of Production, Supply and Distribution) Act, 1992 
and rules thereunder (Local Infant Code);
d.	
Bureau of Indian Standards (BIS) Act, 2016;
We have also examined compliance with the applicable clauses/ regulations of the following:
(i)	
Secretarial Standards with respect to Meetings of Board of Directors (SS-1) and General Meetings (SS-2) issued by the 
Institute of Company Secretaries of India;
(ii)	
The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the 
Listing Agreement entered into with the BSE Limited.
During the period under review, the Company has complied with provisions of the Act, Rules, applicable Regulations, Guidelines, 
Standards etc. mentioned above.
We report that:
	
The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive 
Directors, Independent Directors including Women Directors. There were no changes in the composition of the Board of 
Directors during the period under review; 
	
Adequate notice is given to all Directors to schedule Board Meetings; agenda and detailed notes on agenda were sent at 
least seven days in advance before the meeting, and a system exists for seeking and obtaining further information and 
clarifications on the agenda items before the meeting and for meaningful participation at the meeting;
	
All the decisions of the Board and Committees thereof were carried through with requisite majority.
We further report that based on review of compliance mechanism established by the Company and on the basis of the Compliance 
Certificate(s) issued by the Company Secretary and taken on record by the Board of Directors at their meeting(s), we are of the 
opinion that the management has adequate systems and processes commensurate with its size and operations, to monitor and 
ensure compliance with all applicable laws, rules, regulations and guidelines. 
We further report that during the review period, no major action having a bearing on the Company’s affairs in pursuance of the 
above referred laws, rules, regulations, guidelines, standards, etc. above have taken place.
This Report is to be read with our letter of even date which is annexed as Annexure A and forms an integral part of this report.
	
For S. N. ANANTHASUBRAMANIAN & Co.
	
Company Secretaries
	
ICSI Unique Code: P1991MH040400
	
Peer Review Cert. No.: 606/2019
	
S. N. Ananthasubramanian
Date  : 14th February 2022	
Partner
Place : Thane	
FCS: 4206 | COP No.: 1774
	
ICSI UDIN : F004206C002575051

129
NESTLÉ INDIA LIMITED
‘Annexure A’
To,
The Members,
Nestlé India Limited
CIN: L15202DL1959PLC003786
100/101, World Trade Centre,
Barakhamba Lane, New Delhi -110001
Our Secretarial Audit Report for the financial year ended 31st December 2021 of even date is to be read along with this letter.
Management’s Responsibility:
1.	
It is the responsibility of management of the Company to maintain secretarial records, devise proper systems to ensure 
compliance with the provisions of all applicable laws and regulations and to ensure that the systems are adequate and 
operate effectively.
Auditor’s Responsibility:
2.	
Our responsibility is to express an opinion on these secretarial records, standards and procedures followed by the Company 
with respect to secretarial compliances.
3.	
We believe that audit evidence and information obtained from the Company’s management is adequate and appropriate for 
us to provide a basis for our opinion.
4.	
Wherever required, we have obtained the management’s representation about the compliance of laws, rules and regulations 
and happening of events etc.
Disclaimer:
5.	
We have conducted our Audit remotely, based on the records and information made available to us through electronic 
platform by the Company, due to Covid 19 pandemic induced lockdown and restrictions/ work from home policy of the 
Company in place, for the purpose of issuing this report.
6.	
The Secretarial Audit Report is neither an assurance as to future viability of the Company nor of the efficacy or effectiveness 
with which the management has conducted affairs of the Company.
7.	
We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.
	
For S. N. ANANTHASUBRAMANIAN & Co.
	
Company Secretaries
	
ICSI Unique Code: P1991MH040400
	
Peer Review Cert. No.: 606/2019
	
S. N. Ananthasubramanian
Date  : 14th February 2022	
Partner
Place : Thane	
FCS: 4206 | COP No.: 1774
	
ICSI UDIN : F004206C002575051

130
ANNEXURE - 5 TO THE BOARD’S REPORT
Information as required under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) 
Rules, 2014 forming part of the Board’s Report for the year ended 31st December 2021
A	
CONSERVATION OF ENERGY
(a)	
Steps taken or impact on conservation of energy
Environmental sustainability is embedded in Nestlé Policy on Environmental Sustainability. As part of long-term sustainability, 
your Company ensures that the products, packaging and operations are safe for employees, consumers and the environment. 
Your Company ensures this with a focus on technologies, processes and improvements that matter for the environment. At 
Nestlé, sustainability inspires and guides everything the Company does. Moreover, the Company gives highest priority to 
ensure environmental friendly practices at all factories and offices. These include reduction in power consumption, optimal 
water consumption, eliminating excess use of paper and using eco-friendly products.
As in the past, the Company continued to stress upon measures for the conservation and optimal utilisation of energy in all 
the areas of operations, including those for energy generation and effective usage of sources/ equipment used for generation. 
Within the Company, there are continuous efforts towards improving operational efficiencies, minimizing consumption of 
natural resources and reducing water, energy & CO2 emissions while maximizing production volumes.
During the year, twelve energy reduction projects were undertaken by factories of the Company which will result in 
substantial annualized savings of approximately 19,244 Gigajoules (saving of 0.51% of total annual energy consumption) 
and should be realized in next two to three years. Some of the projects undertaken at different factory locations include 
steam optimization in evaporators and vacuum ovens; electricity optimization in compressed air operations; and electricity 
optimization in heating, ventilation, and air conditioning operations. 
During the year, water reduction projects were initiated in different factories locations. This, inter-alia, resulted in reduction 
in water consumption and reuse of recycled water in a more efficient manner. The projects undertaken will result in savings 
of approximately 65,100 m3 (saving of 2.30 % of total annual water consumption) and shall be realized in the next two to 
three years. One of the key initiatives contributing to water savings in 2021 was increasing the utilization of treated effluent 
after polishing through high technology Reverse Osmosis (RO) plant.
Further, your Company have also initiated projects, leading to reduction of pollution and protection of the environment. 
The reduction is driven at the material usage level and measured in value terms as well. Below were the Key Performance 
Indicators (‘KPI’) which reflected reduction in the food loss and wastage, across value chain: 
•	
Zero Loss Material Variance: Excess usage/ wastage of materials in the production beyond the product manufacturing 
norms reflect the wastage/ in-efficiencies in the production process. 
•	
Obsolescence: The KPI’s with regard to material, which could not be used in the production, rendered products unfit 
for further use or expired before usage, were tracked to ensure minimal food wastage and monetary loss. 
•	
Bad Goods: The KPI’s with regard to finished goods, which reach end of life, due to various reasons including mismatch 
of demand and supply, were tracked to ensure that there is least amount of bad goods. 
•	
Zero Waste to Landfill: All  factories are “zero waste to landfill”, which implies that all generated waste is either reused, 
recycled or co-processed.
(b)	
Additional Investment
Following are the additional proposals, which are initiated for implementation during 2022 at different factory locations:
•	
Use of biomass for steam generation;
•	
Investments in improving plant efficiencies for generation as well as usage;
•	
Investments in the solar energy by entering into Solar Power Purchase Agreement (PPA);
•	
Installation of Reverse Osmosis (RO) plant for recycling of treated waste water; and
•	
Investment in other renewable energy sources.

131
NESTLÉ INDIA LIMITED
(c)	
Impact of the measures at (a) and (b) above for reduction of energy consumption and consequent impact on the cost of 
production of goods
During the years, at the factories there have been continuous efforts to improve operational efficiencies, minimizing 
consumption of natural resources and reducing water, energy and CO2 emissions while maximizing production volumes.
As a result, during the period from 2006 to 2021, for every ton of production, the Company has reduced, the usage 
of energy by around 43%, water usage by around 52%, generation of waste water by around 67% and specific direct 
greenhouse gas emissions by around 57%.
(d)	
Projects planned or initiated for further improvement in energy and water consumption are:
	
Energy initiatives at different factory locations:
•	
Use of biomass for steam generation;
•	
Plant efficiency improvement for generation as well as usage; and
•	
Additional Solar Power Purchase Agreement (PPA).
Water Initiatives at different factory locations:
•	
Increase recycling of treated waste water through Effluent Treatment RO plant; and
•	
Additional RO plant for recycling of Effluent Treatment RO plant.
Initiatives to reduce Green House Gases (GHG) emissions at different factory locations:
The Company plans to reduce around 5,600 Tons of GHG in next two to three years. Some of the key renewable energy 
projects that contributed to reduction in GHG emissions are:
•	
Replacing heavy oil with cleaner fuel (Natural Gas);
•	
Contribution by improving energy generation efficiency; and
•	
Addition of solar energy capacities and usage of green fuel (bio mass) in the existing boilers.
B.	
TECHNOLOGY ABSORPTION
Efforts made in technology absorption are furnished below:
Research and Development (R&D)
1.	
Specific areas in which R&D carried out by the Company
Your Company, as a part of Nestlé Group and under the General Licence Agreement, has access to and advantage 
of drawing from the extensive central R&D efforts and activities of the Nestlé Group. Nestlé Group spends enormous 
amounts and efforts in R&D and in gaining industrial experiences. It has therefore been possible for your Company to 
focus its efforts on testing and modification of products for local conditions. Improving and maintaining the quality of 
certain key raw materials also continued to receive close attention.
2.	
Benefits derived as a result of the above R&D
The ability to leverage the R&D expertise and knowledge of Nestlé Group, has helped your Company to innovate and 
renovate, manufacture high quality and safe products, improve yields, input substitution and achieve more efficient 
operations. Consequently, the consumers perceive the products of your Company as a high value for their money.
3.	
Future plan of action
Steps are continuously being taken for innovation and renovation of products including new product development, 
faster introduction of new products in the market, improvement of packaging and enhancement of product quality/ 
profile, to offer better products at relatively affordable prices to the consumers.

132
4.	
Expenditure on R&D
Your Company benefits from the extensive centralised R&D activity and expenditure of the Nestlé Group, at an 
annual outlay of around 1.6 billion Swiss Francs. The local expenditure of the Company in the nature of Research and 
Development are primarily those incurred for testing and modifying of products for local conditions and are as under:
 (` in million)
a)
Capital
108.8
b)
Recurring
265.6
c)
Total
374.4
d)
Total as a percentage of total turnover
 0.26%
Technology absorption
1.	
Efforts, in brief, made towards technology absorption
As a result of the Company’s ongoing access to the international technology from Nestlé Group, Switzerland, the 
Company absorbs and adapts the technologies on a continuous basis to meet its specific needs from time to time.
2.	
Benefits derived as a result of the above efforts
Product innovation and renovation, improvement in yield, product quality, input substitution, cost effectiveness and 
energy conservation are the major benefits.
3.	
Imported Technology
All the food products manufactured and/ or sold by the Company are by virtue of the imported technology received on 
an ongoing basis from the collaborators. Technology transfer has to be an ongoing process and not a one-time exercise, 
for the Company to remain competitive and offer high quality and value for money products to the consumers. This 
has been secured by the Company under the General Licence Agreement with the collaborators and provides access 
for licence to use the technology and improvements thereof, for the product categories, manufactured/ sold by the 
Company, on a continuous basis.
C.	
FOREIGN EXCHANGE EARNINGS AND OUTGO
(a)	
Activities relating to exports; initiatives taken to improve the exports; development of new export market for products 
and export plans:
Members are requested to refer to the Board’s Report under the paragraph of “Exports”, for this information.
(b)	
Total foreign exchange used and earned:
During the year under review, your Company had earnings from exports of ` 6,395.7 million comprising foreign 
exchange earnings of ` 3,997.5 million and export to Nepal and Bhutan in Rupees amounting to ` 2,398.2 million.
Foreign exchange outgo of ` 24,600.4 million: on account of imports, expenditure on traveling, general license fees, 
etc. and remittances made to non-resident shareholders on account of dividend
	
On behalf of the Board of Directors
Date	 :	17th February 2022	
	
 Suresh Narayanan
Place	:	Gurugram	
	
 Chairman and Managing Director

133
NESTLÉ INDIA LIMITED
ANNEXURE - 6 TO THE BOARD’S REPORT
Statement of Disclosure of Remuneration under Section 197 of Companies Act, 2013 and Rule 5(1) of Companies (Appointment 
and Remuneration of Managerial Personnel) Rules, 2014.
i.	
The ratio of the remuneration of each director# to the median remuneration of the employees of the Company for the 
financial year:
Name of Director
Designation
Ratio to median remuneration 
of the employees*
Mr. Suresh Narayanan
Chairman and Managing Director
135 : 1
Mr. David Steven McDaniel
Executive Director - Finance & Control and CFO
58 : 1
Mr. Matthias Christoph Lohner
Executive Director - Technica
52 : 1
*Employees for the above purpose includes all employees excluding employees governed under collective bargaining.
#Since Independent Non-Executive Directors received no remuneration, except sitting fees for attending Board/ Committee meetings and commission, the 
required details are not applicable.
ii.	
The % increase in remuneration of each director#, Chief Financial Officer, Chief Executive Officer, Company Secretary or 
Manager, if any, in the financial year:
Name of Employee
Designation
% increase in remuneration
Mr. Suresh Narayanan
Chairman and Managing Director
9.4
Mr. David Steven McDanielA
Executive Director – Finance & Control and CFO
Not Comparable
Mr. Matthias Christoph LohnerB
Executive Director – Technical
Not Comparable
Mr. B. Murlic
General Counsel and Company Secretary
-4.7
#Since Independent Non-Executive Directors received no remuneration, except sitting fees for attending Board/ Committee meetings and commission, the 
required details are not applicable.
AAppointed as Executive Director – Finance & Control and CFO with effect from 1st March 2020.
BAppointed as Executive Director – Technical with effect from 1st November 2020.
CDecrease in remuneration is on account of lower value of long-term incentives.
iii.	
The % increase in the median remuneration of employees in the financial year: 10.8%.
iv.	
The number of permanent employees on the rolls of the Company: 7,910.
v.	
Average percentile increase already made in the salaries of employees other than the managerial personnel in the last 
financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and 
point out if there are any exceptional circumstances for increase in the managerial remuneration: The median percentage 
increase made in the salaries of employees other than the managerial personnel was 10.8%, while the increase in the 
remuneration of managerial personnel was 2.4%. These increases are a function of the Company’s market competitiveness 
within its comparator group as ascertained through the detailed salary benchmarking survey the Company undertakes 
annually. The increase during the year reflects the Company’s reward philosophy as well as the results of the benchmarking 
exercise.
vi.	
The key parameters for any variable component of remuneration availed by the directors: Variable Component is a critical 
element of Total Rewards and delivers value for employees who deliver tangible results for the business, against agreed targets. 
Employees including Key Managerial Personnel, Annual short-term Bonus is linked to both Company and Individual Performance.
vii.	 It is hereby affirmed that the remuneration is as per the Remuneration Policy of the Company.
	
On behalf of the Board of Directors
Date	 :	17th February 2022	
	
 Suresh Narayanan
Place	:	Gurugram	
	
 Chairman and Managing Director

134
NOTES

135
NESTLÉ INDIA LIMITED
NOTES