Towards A Sustainable Future: Nestlé India Limited - Annual Report - 2021

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

#BusinessAsAForceForGood
The Board of Directors of Nestlé India Limited
Mr. Suresh Narayanan Dr. Swati A. Piramal Mr. R. V. Kanoria

Chairman & Managing Director Non Executive Director Non Executive Director
Ms. Rama Bijapurkar Ms. Roopa Kudva
Non Executive Director Non Executive Director Mr. P. R. Ramesh
Non Executive Director
Mr. David S. McDaniel Executive Mr. Matthias C. Lohner Mr. B. Murli General Counsel and Company
Director – Finance & Control Executive Director - Technical
and CFO
Content
Annual Report
01. Message to Shareholders03. Environmental Sustainability09. Societal Initiatives14. Long Lasting Partnerships17
Annexures to the Board’s Report
94. Annexure 1: Report on Corporate Governance109. Annexure 2: Annual Report on CSR Activities117. Annexure 3: B

Chairman’s Statement
provided cooked meals, grocery kits, healthcare equipm
oximeters, face shields, gloves and sanitisers. Your Com
oxygen plants in select locations. The Company's brands
their Purpose, and this was strengthened further with th
Campaign and Mask Up pledge, reaching out to over 25
follow basic masking protocols amidst the pandemic.
Your Company continued to offer employment opportun
developmental vistas for talent and has welcomed peop
hiring, apprenticeship and internship. Your Company fur
focus on
well-being, increased mental health coverage for employ
vaccination support and stood by the families of colleagu
unfortunately succumbed to the pandemic.
Good governance and transparent relationships have be
your Company. Your Company has been focussed on the
wellness of people and partners in these challenging tim
Dear Shareholders, served employees, customers, communities, and the bro
In the last 24 months we are confronted with an unparalleled pace through critical and strategic interventions, steered by t
of change. The cascading impact of COVID-19 and its ramification Code of Ethics. Your Company ensured that partners rec
on people, society and economy has left us all vulnerable. Despite payments and no MSME or small supplier suffered. Your
the toughest of times, the resolve to shape a better and healthier stepped-up automation and digitalization across the sup
world has only been strengthened with businesses leading from the The consumption story of India will be strengthened mo
front in overcoming challenges sprung forth by the pandemic. I am Aspirations are rapidly converging between urban and ru
proud of the determination of my colleagues, our partners and to an uptick in the consumption of branded goods with h
stakeholders to face the context and continue to be inspired to safety, and nutrition credentials. Organizations that will
grow. As we forge ahead, business continuity will remain rested on of their employees, stakeholders, and society at large w
the evolving equations between People, Purpose, Partnerships, expertise, leadership, trust and strengthen the bond the
Planet and Performance. consumers.
Business is a force for good. This is the philosophy your Company Right from the start of Nestle’s journey, Founder Henri N
has committed to while embarking on a journey towards a milestone in contributing to a healthier future. Henri’s d
sustainable future focusing on environmental sustainability, good ‘Farine Lactee’ gave birth to Nestlé’s commitment to soc
governance, people and societal initiatives. commitment has been carried forward by your Company
Your Company, with a 109-year history of serving consumers in years. Its purpose has been centered around “Unlocking
India, is proud to reach a milestone with its ninth factory or to enhance quality of life for everyone, today and for ge
‘Navaratna’ in Sanand, Gujarat. The factory is a tribute to the come”.
dedication, commitment, and tenacity of its colleagues and As we move into the second decade of the 21 century,
st
partners. It is the most ecologically and digitally advanced and the culture, Purpose, Values and commitment enshrined
aspires to be a paperless and state of the art environment friendly legacy and deeds of Henri Nestlé gives us the inspiration
unit. Not just at the new factory, your Company further build a sustainable future in India with passion and dete
accelerated its sustainability spend by investing in various Suresh Narayanan
commitments across climate change, packaging, sourcing, and Chairman & Managing Director
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
1

Environmental
Societal Initiatives
Sustainability
Long Lasting Partnerships
People Initiatives
2
Environmental Sustainability Societal Initiatives
People
Initiatives Long Lasting Partnerships
Environmental Sustainability
Climate | Packaging | Water | Responsible Sourcing
3
Climate Key Priorities: Manufacturing
Within Nestlé India factories, there are continuous efforts to improve operational
efficiencies, minimizing consumption of natural resources and reducing water, ene
and CO emissions while maximizing production volumes.
2
Reduced Direct GHG Emissions Reduced Energy Usage
(for every ton of production) (for every ton of production)
-5 7% -4
3%
2006 2021 2006 2021
Reduced Water Usage Reduced Waste Water Generation

(for every ton of production) (for every ton of production)
-5 2% -67%
2006 2021 2006 2021

Climate Key Priorities: Logistics
A Focus on Sustainable Operations
Initiated Waterways Lane

2019
2021
Delivery Vehicle Payload

Utilization
90.3%
Increased Usage of Bigger Sized Vehicles
(in Shipments)
Delivery Vehicle Payload 2019 5.90%
Utilization 2021 9.01%
2019 90.3%
2021 92.5%
Increased Usage of Railways (in Cases)
2019 2021
0.2% 6.49%
Climate Key Priorities: Fresh Milk Procurement
Key Interventions
Proposed
ENTERIC FERMENTATION
FEED PRODUCTION Yield Improvement, Mineral
Soil Testing, Mix, Silage, Green Fodder,
Tensiometer, Zero Semen, Harvester, Fan, MANURE MANAGEMENT
Tillage Machine Foggers Anaerobic Digester Manure Separa
ENERGY &
PROCESSING CARBON
Solar Energy, Bio- SEQUESTRATION ACADEMIC PARTNERSHIP
Fuel Moringa Plantation Collaboration with knowledge Partn
Environmental Sustainability: Packaging
Packaging and Plastic Waste Management: The Drivers For A Better World
Nestlé India Continues To

Be Plastic Neutral
Plastic Neutrality Across Brands
EPR of
23,600 MT
in 2021
Environmental Sustainability: Packaging
Plastic Reduced in our Packaging since

8.6%
Annually Eliminating 30 Million Plastic
Straws Under Ready to Drink Portfolio
Mono Material Packaging

Hilldaari - Collaboration and Awareness
Establishing Waste Management

Systems in Tourist Locations
Enabling Digital Monitoring
Divert Waste from

Landfill Waste Worker
Professionalization
Mussoorie Nainital Ponda
Dalhousie Mahabaleshwar Munnar
100% Recyclable or
Our Commitment Reusable Packaging by 2025.
People
9
Societal Initiatives: Serving Society is our Focus
Aligned With National
Priorities
and SDGs*
Focus on Impac t rather than st Providing Relief/easing the suffering of

ju numbers* vulnerable communities
For Individuals
Impact of Key and Families
Encouraging Over
Breastfeeding 8.4 Million
Practices through Beneficiaries (2.7 direct and 5.7 indirec
Community across 8 States/UTs
Action
*Picture taken pre-pandemi

Societal Initiatives: Impact
Helping Adolescents Live Healthier

Over 445,000
Beneficiaries Across
23 States/UTs
Creating Access to Clean

Drinking Water
For Our Around 150,000
Beneficiaries
Communities
Project Serve Safe Sanitation Facilities for Girl Students

Food 25,900 Street Over 240,000
Vendors across Beneficiaries
19 States/UTs
Societal Initiatives: Impact
1500 People in
Rohira Village
Before Intervention Water Chamber School Entrance Classrooms

After Intervention
Around 1300 People in Phase - 2 adoption of villages -
Gabanspur and Naharpur
For the Planet
Creating Awareness about Water Conservation

Nearly 120,000 students
Extending Support to Communities During the Pandemic

Reached out to 28
states/6 UTs
Continue to support
Communities:
Covid-19 Relief
Efforts Oxyg
near en Plants 5 factory
locat
i
COVID-19
Relief Efforts:
Safeguarding the
well-being of
Communities
Around 4.4
million cooke
meals and
124,500
grocery kits
provided d
People
Long Lasting Partnerships

14
Our Suppliers, Our Extended Family
Starting Up Liaising with Authorities

for free movement of milk tankers
Ramp Up
Ensuing Continuous & Safe supply of m
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
Responsible Sourcing
MAGGI Spice Plan: The

Touching lives of over 1300
Sustainable Sourcing Farmers in 39 Villages across 7 States
Programme
People
Planet
Safe living & working
Environmental Profit
conditions Worker
sustainability of Resilient Livelihoods (farm profita
conditions &
farms
child work
Spices: Chilli, Cumin, Coriander, Turmeric

Achieve 100% responsible sourced coffee
by 2025
Sustainable Coffee
Achieve 100% sustainable cocoa

confectionery by 2025 Sustainable
Achieve no deforestation (Palm oil)

by 2022
People
Empowering and Engaging Our People

17
People Initiatives
Workplace Safety During Pandemic
Temperature screening
Hand & Respiratory hygiene
Social distancing
Sanitation of premises
Increase focus on physical and

mental well-being
60% employees covered in
COVID – Medical/ Mental Health awareness
financial support sessions 81% of employees fully vaccinate
People Initiatives
Unleashing passion, competence, commitment for performance and improv

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
Growing percentage of women

recruited as trainees
Inculcate Self Learning
54%
2021
Henri Nestlé Scholarship:

Over 160 employees given scholarships of INR 50,0
person to pursue course of choice
Growing percentage of women

employees (white collar) iLearn: Learning Management
System with over 1000+ courses
24%
2021
NesVidya: Performance Support

solution for Field Force, enables learning
anywhere, anytime
People Initiatives
Our Commitment to ‘Make in India’ Continues
Our 9 factory in India at

th
Sanand,
Gujarat
Digitally the most State of the Art factory reinforcing our
advanced sustainability journey
factory
Over 70% women Part of

workforce at the INR 26 Billion investment planned in India over next
factory few years
NESTLÉ INDIA LIMITED
Corporate Information
MANAGEMENT COMMITTEE
Suresh Narayanan - Chairman & Managing Director David S.
BOARD OF DIRECTORS McDaniel - Finance & Control and CFO
Suresh Narayanan - Chairman & Managing
Director (DIN:07246738)
David S. McDaniel - Executive Director - Finance & Control and CFOC(DIN:08662504)Matthias
Matthias Lohner - C. Lohner
Technical - E
Anurag Patnaik - Human Resources
Ashish Pande - Supply Chain
B. Murli - Legal & Company Secretary Chanda
Consumer Insights, Communications Krishna Guha Roy
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 - 11
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, 1 Floor, North Tower No. 2, Harrington Road, Chet
st
600031
- Tower “A”, 9 Floor, DLF IT Park, 08, Major Arterial Road, Block
th
Rajarhat, Kolkata - 700156

- 1 Floor, ICC Chambers, Near Saki Vihar Telephone Exchange,
st
Powai, Mumbai - 400072

FACTORIES
- Village Maulinguem (North), Bicholim Taluka - 403504 (Goa)
- Plot No. 294, 297, Usgao Industrial Area, Ponda - 403406 (Go
- Unit I & II - Patti Kalyana, Kiwana Road, Samalkha - 132101 D
(Haryana)
- Industrial Area, Tahliwal, District – Una – 174301 (Himachal P
- Industrial Area, Nanjangud - 571301 Mysore District (Karnata
- Ludhiana-Ferozepur Road, Near Kingwah Canal, Moga - 14200
- P.O. Cherambadi - 643205 Dist. Nilgiris (Tamil Nadu)
- Plot No. – 1A, Sector No. -1, Integrated Industrial Estate, SID
263145, Dist. Udhamsingh Nagar (Uttarakhand)
- Plot No. SM - 38, Sanand II, GIDC Industrial Estate, Siyawada
GIDC Office, Tal: Sanand– 382170, Dist: Ahmedabad, (Gujarat)
REGISTRAR & TRANSFER AGENTS
M/s Alankit Assignments Limited 4E/2, Jhandewalan Extension, Ne
Tel No : 011-42541234, 23541234 Fax No : 011-41540064
LISTING OF EQUITY SHARES (Listing Fees paid)
BSE Limited, Mumbai, Phiroze Jeejeebhoy Towers, Dalal Street, M
(Scrip Code: 500790)
63 ANNUAL GENERAL MEETING
RD
Tuesday, 12 April 2022 at 10.00 A.M. IST

th
AGM through Video Conferencing/ Other Audio Visual Means (VC/

[Deemed Venue for meeting : Registered Office: 100/ 101, World Tr
Barakhamba Lane, New Delhi 110001]
FINANCIAL YEAR
1 January to 31 December
st st
21
10 - Year Financial Highlights ` in Millions (except otherw
2021 2020 2019^ 2018 2017 2016 2015* 2014
Results
Sales 146,337 132,902 122,953 112,162 101,351 94,096 81,233 98,063
Profit from Operations 32,548 28,775 25,940 23,509 18,305 16,542 13,338 17,926
as % of Sales 22.2 21.7 21.1 21.0 18.1 17.6 16.4 18.3
Profit after Tax 21,449 20,824 19,684 16,069 12,252 10,014 5,633 11,847
as % of Sales 14.7 15.7 16.0 14.3 12.1 10.6 6.9 12.1
Balance Sheet and

Cash flow statement
Shareholders Fund 20,845 20,193 19,189 36,737 34,206 32,823 28,178 28,372
Return on Average Equity 104.5 105.8 70.4 45.3 36.6 32.8 19.9 45.5
(%)
Operating Cash Flow 22,714 24,545 22,953 20,525 18,178 14,659 10,981 16,440
as % of Sales 15.5 18.5 18.7 18.3 17.9 15.6 13.5 16.8
Capital Expenditure 7,308 4,741 1,522 1,628 1,959 1,133 1,493 4,044
as % of Sales 5.0 3.6 1.2 1.5 1.9 1.2 1.8 4.1
Data per Share

Earnings per share (`) 222.5 216.0 204.2 166.7 127.1 103.9 58.4 122.9
Dividend per share (`) #
200.0 200.0 342.0 115.0 86.0 63.0 48.5 63.0
Market capitalisation, end 1,899,925 1,773,312 1,425,983 1,070,913 756,381 581,367 561,535 615,113
December
Number of employees 7,910 7,747 7,649 7,604 7,527 7,588 7,495 7,228
Figures from 2016 onwards are as per Ind AS. Effective 1 July 2017, Sales are not comparable due to change in structure of Indirect taxes.
st
*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
Operating Profit Margin (%) (Profit From Operations / Sale of Products) 21.7
Net Profit Margin (%) (Profit After Tax / Sale of Products) 15.7
Return on Net Worth (%) (Profit After Tax / Average Equity) 105.8
Current Ratio (Current Assets / Current liabilities) 1.7
Inventory Turnover Ratio (Sale of Products / Average Inventories) 9.8
Debtors Turnover Ratio (Sale of Products / Average Trade Receivables) 91.9
*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 d
Nestlé India Limited | Annual Report - 2021 22
Your Company has created a contingency p

Board’s Report - 2021 ` 905.8 million (previous year ` 1,088.9 million)
Dear Members, contingencies resulting mainly from matters, wh
Your Directors are pleased to present their report litigation / related to disputes and other unce
and SALES
financial statements for the year ended 31 December
st
2021.
Financial Results and State of Company’s 175,0
Affairs 00
150,0
00
(` in Million) 125,0
00
Particulars 2021 2020 100,0
00
Sale of products 146,337.2 132,901.6 75,00
0
Add : Other operating revenues 756.9 598.7 50,00
0
Add : Other Income 1,201.1 1,458.5
25,00
Total Income 148,295.2 134,958.8 0
0
Less : Total Expense 117,092.5 106,830.9 2017 2018 2019 2020
Sales from 2017 onwards are impacted due to implementation of Goods
Profit before exceptional items and tax 31,202.7 28,127.9 and Service tax
Exceptional items 2,365.0

requiring management judgement. Your Co
-
also reversed, utilized / settled contingency pr
Profit before tax 28,837.7 28,127.9
749.8 million (previous year ` 580.2 million) d
Tax expense 7,389.1 7,303.6 settlement of certain litigations and settlemen
Profit after tax 21,448.6 20,824.3 for which provision is no longer required.
Add : Other Comprehensive Income (1,514.1) (922.1) Exceptional item comprises the aggregate
Total Comprehensive Income 19,934.5 19,902.2 service cost, settlement cost and incidental ex
Opening balance in Retained 11,175.2 10,173.7
incurred for the implementation of the ‘Future
Earnings effective 1 December 2021, for certain catego
st
Amount available for appropriation 31,108.2 30,072.7

employees. ‘Future Ready Plan’ is a combination
Interim dividends paid during 2021: Defined Benefit Pension Scheme for past period of se
` 135.00 per share 13,016.1
-13,016.1 Defined Contribution Scheme for future service. F
2020: ` 135.00 per share -
please refer Note No. 3 of the Financial Statem
Final dividends paid during 2021: `
65.00 per share
2020: ` 61.00 per share
6,267.0
-5,881.4
-
Final dividends paid during 2021: `
65.00 per share
2020: ` 61.00 per share
6,267.0
-5,881.4
-
Closing balance in Retained 11,825.1 11,175.2

Earnings
Key ratios:
Earnings per share (`) 222.5 216.0 EARN
INGS
Dividend per share (`) Interim 24,0
00
Dividends Proposed - Final Dividend 135.00 135 22,0
65.00 65.00 00
20,0
00
Additional Information: 18,0
Profit from operations 32,547.5 28,775.4 00
16,0
00
14,0
00
12,0
Total Sales and Domestic Sales for the year 00
10,0
increased by 10.1% and 10.7% respectively. 00
8,00 2017 2018 2019*# 2020 2021^
Domestic Sales growth is
largely driven by volume and mix and is broad 0
6,00
Profit after Earnings Dividend
based. Export Sales were lower by 1.2% mainly 0
Tax per Share per Share
4,00
due to
and lowerincoffee
change exports
product mix. # Includes
0 special interim dividend of `180 per share paid in 2019
accumulated
2,00 profits of previous years
Other Income decreased due to lower average *Figures0have been reinstated in accordance with implementation of Ind AS 116
Leases.0
liquidities following transition to “Future Ready ^Comparable Profit After Tax without the impact of Exceptional Item (Transition
Plan” as explained below, partly offset by higher cost of Pension Plan)
yields.
23
SOURCES AND UTILISATION OF CASH FIXED ASSETS

40,000 20 40,000 6
36,000 16 5
32,000 12 30,000
28,000 8 4
4 20,000 3
24,000 0 2
20,000 10,000
16,000
12,000
2017 2018 2019 2020 2021^ 1
0 0
8,000
4,000
0
Debt: Equity 1: 1:99 3:97 2:98 1:99

99
2017 2018 2019* 2020 2021
Operating Cash Flow Capatil Expenditure Fixed Assets includes Property, Plant and Equipments and Capital work-in-progress.
Investment in Insurance Plan (Reimbursement
Rights)
Divident and Tax thereon
Op. Cash Flow as a % of Sales
Ratios in terms of sales from 2017 onwards are impacted due to implementation of
Comparable Op. Cash Flow as a % of Sales Goods and Service tax
Ratios in % of sales from 2017 onwards are impacted due to implementation of *Figures have been reinstated in accordance with implementation of Ind AS 116 Leases.
Goods and Service tax EMPLOYEE BASE
# Includes special interim dividend of `180 per share paid in 2019 out of 8000
16
20
accumulated 6000
12
profits of previous years 4000
*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)
SHAREHOLDERS FUNDS
40,000 120
35,000 105
30,000 90
25,000 75
20,000 60 2000
0
2017 2018 2019*# 2020

15,000 No. of Employees Net Sales per
45 Employee
10,000 30 Ratios in terms of sales from 2017 onwards are impacted due to implementation
5,000 15 Goods and Service tax
0 0
2021 Dividends
2019*#
2017 2018 2020
Reserve & Surplus Return on Average Equity (%)
The Board of Directors have recommended a final
Share Capital
# Reserves & Surplus impacted by payment of Special interim dividend of

`180 per of ` 65/- per equity share amounting to ` 6,
share in 2019 out of accumulated profits of previous years
*Figures have been reinstated in accordance with implementation of Ind AS 116 for the year 2021 for approval of the membe
Leases. Annual General Meeting of the Company
MARKET CAPITALSATION The total dividend for 2021 aggregates t
equity share which includes interim dividend
` 110/- per equity share paid on 19 Ma th
2,0
00
50
0 The
16dividend
th recommendation
November is in accordance with t
2021, respectively.
1,9 40
00 0
1,8 30
00 0
1,7 20
00 0
1,6 10
00 0
1,5 0
00
1,4
00
1,3
00
1,2
00
1,1
00
1,0
00
900
800
700
600
500
400
300
2017 2018 2019 2020 2021
200
100
Market Capitalsation (in Billion)
Market Capitalisation is based on year end closing share price quoted on
0
Your Directors do not propose to transfer any
the Bombay Stock Exchange.
reserves.

Exports data and technology, deepened its engagem
During 2021 exports of your Company remained stable with an towns and villages. Your Company progressed firml
overall drop of 1.2% mainly due to lower coffee exports and on its RURBAN journey that was accelerated
change in product mix. using a healthy mix of customized portfolio a
MAGGI Noodles and Sauces witnessed growth in UK, Canada, deep consumer connect. Your Company d
Australia and New Zealand, while EVERYDAY in Nepal and strong rural growth performance in addition
Bhutan faced a challenging year as a result of supply chain growth in smaller town classes and urban ag
disruptions because of COVID-19. E-commerce showed strong acceleration. Gr
Strengthening the confectionery export portfolio with the fueled by new emerging formats such as qui
launch of POLO in the Middle East helped to establish your and click and mortar, leading to lower delive
Company as a key exporter in the category. Your Company improved shopper experience. Organized tra
expanded Crunch Wafers in ASEAN markets, such as resurgence and good revenue growth, despi
Indonesia and Philippines. wave of the pandemic.
Your Company’s continuous focus on the development of Your Company continued to leverage the str
new markets such as Indonesia and Mauritius, channel portfolio and aligned its products with the ‘n
expansion with the mainstream thrust in Australia and New brands have further strengthened their equit
Zealand and launch of range extensions like MAGGI Sauces to ahead.
Oceania facilitated growth for MAGGI Noodles and Sauces Strengthening its commitment to ‘Make in In
and KITKAT. augmentation of manufacturing facilities, you
Your Company continues to explore new markets for new state-of-the-art manufacturing factory i
categories such as prepared dishes and cooking aids, Gujarat for the MAGGI portfolio, became full
chocolates and confectionery in the Middle East. in 2021. Your Company also commissioned a
ENABLED CONTRIBUTION TO EXCHEQUER line in its Ponda factory in Goa in 2021.
40000
35000
25
30
Innovation continues to be an engine of grow
30000
20
25000
Innovation and Renovation pipeline of produ
20000
15000
10
15
to be a thrust area, across categories such a
10000
5
5000
Dishes and Cooking Aids, Chocolates and Co
0 0
Milk Products and Nutrition. Your Company h
2017 2018 2019 2020 2021
more than 90 products since 2016 and anoth
are in the pipeline.
Transforming with digital analytics
Digitalization is a growth accelerator for
Company and will continue to be so in the fu
Leveraging the
Contributio Contribution as % of
n Sales power of data and analytics is your Compa
Ratios from 2017 onwards are impacted due to implementation of Goods and
Service tax
strategy. It has a multi-intelligent data ana
that sources internal and external data to
Contribution to the Exchequer
Your Company over the years has been enabling significant insights that triggers swift and decisive busine
contribution to various taxes. During the year 2021, Diverse and inclusive workforce with respect at
the Company through its business, enabled tax the core
collections at Central and State level close to ` 38.1 Diversity is an integral part of Nestlé India, wh
billion, in aggregate. of new ideas and thoughts, diverse skills and e
Business Development fuels innovation and growth. Your Company ha
As the pandemic raged on, your Company was multigenerational workforce, where 72% are m
determined to keep strong as it stood the test of Equal opportunity, respect and dignity are anc
resilience. It delivered double-digit growth pivoted pillars of ‘Purpose and Values’ of Nestlé India.
on volume and mix performance despite a comprised 43% of its new hires in 2021. In the
challenging and highly volatile economic factory in Gujarat 70% of the workforce are w
environment. To better penetrate the market, your
Company through the granular cluster-based
approach, powered by
25
Sustainability initiatives at the core of Noodles has been carefully crafted by culinary
‘Business a force for good’ the choicest selection of 19 herbs and spices fr
Your Company is committed to environmentally India.
sustainable business practices across its value chain With an increase in snacking among consu
making the right choices to protect the future by Company launched two new variants of MAGG
integrating environmental considerations into its Sauce – ‘Sriracha’ and ‘Extra Hot’.
business planning. Preserving the planet is MAGGI Masala-ae-Magic expanded its presen
weaved into the Purpose of your Company - “We India with the launch of a new variant MAGGI
unlock the power of food to enhance quality of life Magic, a unique spice mix tailormade for South
for everyone, today and for generations to come”. that elevates taste, aroma and flavor of everyday m
Your Company has accelerated the sustainability Your Company strengthened consumer trust w
journey by working across 4 commitments related counterfeit campaign in 2021, creating awaren
to climate, packaging, sourcing and water. Its consumers to stay vigilant and purchase the a
efforts encompass the entire value chain, where it MAGGI noodles packed with the goodness of ir
actively engages with farmers, suppliers, employees Your Company also launched the QR Code Ant
and consumers to increase awareness about the Solution, which enables consumers, retailers a
planet. to assess the authenticity of MAGGI Masala-ae
Through the NESCAFÉ Plan, MAGGI Spice Plan and a minute.
partnering with the dairy farmers, your Company Your Company concluded ‘MAGGI Desh ke Liye
collaborates with the farmers on environmental - Apna Food Business’ initiative, which rec
sustainability programmes. entries, where winners were supported with fu
All your Company’s brands continue to be plastic equipment and training to start their own food
neutral, which means the quantum of plastic that is With the surge in consumers searching how
being used in the packaging is compensated by what everyday meals, MAGGI’s website carryin
is collected and managed. attracted
Amidst critical times like the pandemic, your 1.5 million users. The brand forged strong par
Company’s strong values and purpose ensured that top home chefs to help
it never lost sight of the well-being of the society consumers simplify everyday cooking and beca
and continued walking the path of being a in the kitchen.
‘Force for Good. Programmes such as Project Accelerating its commitment to sustainability,
Vriddhi, Project Jagriti, Nestlé Healthy Kids through the MAGGI Spice Plan that sources se
Programme, creating access to clean drinking water from 39 villages of India, continued to partner
and providing sanitation facilities to girl students are and suppliers, adopted sustainable agricultural
important steps that your Company continues to focusing on soil health, water usage and biodiv
take every year. enhancement. At the same time, your Com
committed to resilient livelihood and farm profitab
Prepared Dishes and Cooking Aids Portfolio
The Prepared Dishes and Cooking Aids business
Strengthening Breakfast Cereals
offers convenience, taste, and quality to consumers. Your Company launched Nestlé GOLD Corn and
It strengthened its place as an ally to consumers by which is a differentiated proposition in
bringing in a dash of excitement to everyday the cereals category. Nestlé GOLD Corn and Oa
cooking. In 2021, the continuing momentum and fortified with immunonutrients such as zinc, iron
improved availability helped MAGGI Noodles and selenium. KOKO KRUNCH was renovated wi
MAGGI Masala-ae-Magic achieve double digit taste and increase in whole grains.
growth, while MAGGI Sauces continued to grow profitably Your Company also launched KOKO
by focusing on premiumisation. KRUNCH Kookie cereal further strengthening t
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.
and continued walking the path of being a
‘Force for Good. Programmes such as Project Accelerating its commitment to sustainability,
Vriddhi, Project Jagriti, Nestlé Healthy Kids through the MAGGI Spice Plan that sources se
Programme, creating access to clean drinking water from 39 villages of India, continued to partner
and providing sanitation facilities to girl students are and suppliers, adopted sustainable agricultural
important steps that your Company continues to focusing on soil health, water usage and biodiv
take every year. enhancement. At the same time, your Com
committed to resilient livelihood and farm profitab
Prepared Dishes and Cooking Aids Portfolio
The Prepared Dishes and Cooking Aids business
Strengthening Breakfast Cereals
offers convenience, taste, and quality to consumers. Your Company launched Nestlé GOLD Corn and
It strengthened its place as an ally to consumers by which is a differentiated proposition in
bringing in a dash of excitement to everyday the cereals category. Nestlé GOLD Corn and Oa
cooking. In 2021, the continuing momentum and fortified with immunonutrients such as zinc, iron
improved availability helped MAGGI Noodles and selenium. KOKO KRUNCH was renovated wi
MAGGI Masala-ae-Magic achieve double digit taste and increase in whole grains.
growth, while MAGGI Sauces continued to grow profitably Your Company also launched KOKO
by focusing on premiumisation. KRUNCH Kookie cereal further strengthening t
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

portfolio. KOKO KRUNCH Kookie cereal has choco chips Company continued to accelerate growth thr
embedded in the cereal and tastes like a cookie. channel engagement, building its presence in
E-commerce grew with speed and delivered growth for science through products such as RESOURCE
your Company’s breakfast cereals business. Single PROTEIN, RESOURCE DIABETIC and OPTIFA
serve SKUs drove penetration among consumers. to
Milk Products and Nutrition Portfolio meet consumer needs, your Company renov
The Milk Product and Nutrition business continued RESOURCE HIGH PROTEIN with immunonutr
to deliver good performance despite challenges Company’s Medical Nutrition portfolio witnes
linked to commodity prices, that were mitigated by performance, with its flagship product PEPTA
cost optimisation and efficiencies across the value chain. patients in critical care.
Your Company displayed resilience as it navigated Coffee and Beverages Portfolio
through the second wave of COVID-19. E-commerce Your Company continued to focus on growin
contributed towards driving the performance of Milk and Beverages business by remaining consis
Products and Nutrition category. Your Company successful strategy of building coffee consum
leveraged its in-depth knowledge of nutrition and through the year. NESCAFÉ registered yet an
quality as it continued to adapt to the new normal. double-digit volume-led growth, based on signific
With consumers spending more time at home in household penetration and increase in ma
adopting creative pursuits such as baking and Your Company continued its thrust on innova
experimenting with new recipes, MILKMAID increased addressing the different needs of consumers
its engagement through its digital platform ‘milkmaid.in’ launch of NESCAFÉ ALL in
by providing dessert recipe solutions for baking 1 – a convenient coffee premix affordably pr
enthusiasts. Over 300,000 consumers visited the and NESCAFÉ Black Roast – an intense cup f
website every month, which increased in-home usage of coffee lovers.
MILKMAID and fueled growth. Your Company accelerated its premiumiza
Your Company’s Ready-to-Drink beverage portfolio delivering coffee at its best with NESCAF
of NESCAFÉ and MILO saw accelerated growth as a innovative product and packaging solutions,
result of increase in home consumption that was continued in its journey to delight consumer
supported by an increase in distribution that like experience at home, resulting in strong
mitigated the impact of declining out-of-home Your Company moved ahead in its journ
consumption. a differentiated brand in the southern part o
Sustainability is embedded in the way your Company launch of a renovated recipe for NESCAFÉ SU
does business. Nestlé MILO and Royal Challengers offering superior taste and aroma, in its dist
Bangalore joined hands during the Indian Premier format. Your Company also expanded its por
League season to launch of NESCAFÉ SUNRISE Liquid Decoctio
bat for the planet, with the launch of paper straws for ‘ready-to- use’ coffee decoction for consumers de
the MILO beverage packs. Your Company coffee experience.
responsibly sourced paper straws from renewable Along with brand building initiatives, your Co
sources and certified by the Forest Stewardship Council distributed coffee to the frontline COVID war
(FSC). This transition into paper straws has extended support during the testing times.
also been made for NESCAFÉ. Your Company continued to remain committ
Your Company believes that breastmilk provides the respecting the environment and supporting t
best nutrition for babies, and every child should be farmers with its sustainability initiatives. Thr
exclusively breastfed for six months, followed by NESCAFÉ Plan, your Company trained and su
introduction of age-appropriate complementary coffee farmers to adopt agricultural practices
feeding and continued breastfeeding until two years farm yield and farmer’s income.
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
27
Chocolates and Confectionery Portfolio and more aromatic coffee-chicory blend was in
Despite a challenging year, your Company’s South India.
Chocolates and Confectionery portfolio continued its With the rise of food delivery and the increase
strong performance with healthy growth and market standardized and operator friendly solutions, y
share gains. Your Company also commissioned a continued to invest into differentiated solutions
new KITKAT line in its Ponda factory in Goa in 2021. the requirements of the new age food service
In times when consumers are looking for “good for saw the inclusion of easy step solutions to help
me” dishes like biryani and manchurian sauce, that
ingredients in their food, your Company launched introduced in the menu. In addition to product
Nestlé MUNCH FRUIT O NUTS, a unique Company continued to focus on service suppor
combination of flavor and 135+ recipes to help customers build a strong
texture, where crunchy almonds combined with the minimal steps, minimal pantry usage and easy
fruity taste of pomegranate are wrapped around a Your Company continued to grow and invest in
crunchy wafer center. MUNCH FRUIT O NUTS is a business through “Entrepreneurship for Youth”
category first innovation, leveraging your Company’s create livelihood and job opportunities for
strong R&D capabilities and extensive consumer Your Company now has 600+ franchise operat
research insights on the taste preferences of India across channels, generating sustainable bus
that is diverse. entrepreneurs. To further unlock scalability, ne
Through MUNCH and its full pack range, your models like express and trolley plus were also
Company continued to grow its footprint in rural to encourage more entrepreneurs to participat
India by associating with festivals of India, that was growing business opportunity with lower inves
further augmented through its association with formats.
Disney Marvel, that is popular in towns across the Awards and Recognitions
country. Your Company’s performance and commitmen
In order to meet the needs of the consumers, your recognized by leading industry forums for its w
Company launched a limited edition of KITKAT areas of corporate management, marketing an
Kookie & Crème flavor, across all channels. KITKAT • Business Today recognized Mr. Suresh Naray
Kookie & Crème flavor is a fusion of the familiar India’s Best CEO, FMCG
taste of KITKAT with Cookie & Crème flavour. • CNBC TV18 India Business Leader Awards (I
Nestlé Professional - Out-of-Home Business recognized Nestlé India as the “Outstanding Co
Your Company’s Out-Of-Home (OOH) business is year”
on a recovery path with gradual opening of hotels, • Mr. Suresh Narayanan, Chairman and Manag
restaurants, offices and malls. There are signs of a Nestle India, was honored as the Entrepreneur
return to pre- pandemic levels of business in some Entrepreneur of The Year 2020
geographies such as Tier 1 and Tier 2 towns. • Mr. Suresh Narayanan honoured amongst th
In 2021, there was significant portfolio expansion with Male Gender Equality Champions Globally
product launches across Prepared Dishes and • MAGGI featured in Kantar BrandZ India’s Mo
Cooking Aids and Coffee and Beverages portfolio FMCG Brand List
that supported the OOH business to be future ready. • MAGGI and NESCAFÉ India awarded the mos
Launch of NESCAFÉ Roasted Whole Beans, NESCAFÉ brands of 2021 by Marksmen Daily and Zee Bu
Sunrise Strong and Seasonings from MAGGI for • NESCAFÉ recognised for its best-in-class mar
OOH, are noteworthy innovations. effectiveness and advertising communication a
In 2021, your Company continued to focus on silver metals and 1 bronze metal at the EFFIES
premiumizing the beverage portfolio, through the • Ask Nestlé awarded gold at the Brand Equity
scale up of NESCAFÉ Roasted Whole Bean coffee strategy awards
and bean-to-cup solution. The coffee solution • KITKAT Musical Breaks won gold in ET SPOTT
displayed strong customer acceptance, despite the in the category ‘Brand promotions on audio or
challenges thrown by the lockdown in the second streaming apps’
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
Nestlé Professional - Out-of-Home Business recognized Nestlé India as the “Outstanding Co
Your Company’s Out-Of-Home (OOH) business is year”
on a recovery path with gradual opening of hotels, • Mr. Suresh Narayanan, Chairman and Manag
restaurants, offices and malls. There are signs of a Nestle India, was honored as the Entrepreneur
return to pre- pandemic levels of business in some Entrepreneur of The Year 2020
geographies such as Tier 1 and Tier 2 towns. • Mr. Suresh Narayanan honoured amongst th
In 2021, there was significant portfolio expansion with Male Gender Equality Champions Globally
product launches across Prepared Dishes and • MAGGI featured in Kantar BrandZ India’s Mo
Cooking Aids and Coffee and Beverages portfolio FMCG Brand List
that supported the OOH business to be future ready. • MAGGI and NESCAFÉ India awarded the mos
Launch of NESCAFÉ Roasted Whole Beans, NESCAFÉ brands of 2021 by Marksmen Daily and Zee Bu
Sunrise Strong and Seasonings from MAGGI for • NESCAFÉ recognised for its best-in-class mar
OOH, are noteworthy innovations. effectiveness and advertising communication a
In 2021, your Company continued to focus on silver metals and 1 bronze metal at the EFFIES
premiumizing the beverage portfolio, through the • Ask Nestlé awarded gold at the Brand Equity
scale up of NESCAFÉ Roasted Whole Bean coffee strategy awards
and bean-to-cup solution. The coffee solution • KITKAT Musical Breaks won gold in ET SPOTT
displayed strong customer acceptance, despite the in the category ‘Brand promotions on audio or
challenges thrown by the lockdown in the second streaming apps’
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

People Focus partners. Through this model of training of lev
Your Company has always considered safety, network of internal subject matter experts, cus
security and well-being of people at its core and content and global expertise, the sales teams
continued with virtual engagements, virtual employeed to learn and improve performance.
trainings, mental health initiatives and check-in Around 150 Nestlé volunteers participated in th
programmes for its employees. Employee Volunteering Programme’. Over 250
Your Company rolled-out ‘NestAid’, an ecosystem of conducted on nutrition, environment, health an
care, that has initiatives for the security of Nestlé volunteers that positively impacting the lives o
employees and their families. Organized under three beneficiaries such as adolescents, women and waste
pillars, the initiatives provide meaningful and Sales
impactful support. Your Company’s organized trade witnessed a r
‘Plan for the Unforeseen’, the financial support pillar good revenue growth and it continued on its p
addresses the emergency needs and NesSHIELD- focuses and sustained growth in large metros, and also
on financial needs and health related expenses in an towns despite the impact of the second COVID
unfortunate event that a colleague passes away. Your Company set out firmly and resolutely
‘Care when you need it’ the medical support pillar RURBAN journey by using a healthy mix of a c
which ensures timely medical help through tie-ups portfolio, direct distribution and enhanced d
with reputed hospitals, tele consultations and infrastructure, deployment of resources, reg
supply of oxygen concentrators and other medical localized communication, enhanced visibility
facilities. in village haats and building consumer connect
‘Healthy Mind Healthy Life’ the wellbeing pillar Project RURBAN, your Company reached out to
focuses on employee’s mental and physical with population less than 100,000 and large vi
wellbeing, especially during the pandemic, through a population greater than 2,000, that offer long-
tie-up with a leading employee assistance provider opportunities.
for counselling and self-help, nutrition support, E-commerce channel showed strong acceler
sessions with medical experts and yoga growth was fuelled by new emerging form
practitioners. quick commerce and Click & Mortar, leadin
Your Company continued its commitment to the delivery times and improved shopper exper
youth via Nesternship, a virtual internship programme Company’s effort to ensure last mile access we
for final year graduates and post-graduates across hyperlocal - quick commerce channels. E-comm
disciplines. The programme focused on upskilling your Company’s products accessible at point o
1,000 interns, providing them with a depth of providing differentiated offerings to consum
experience and a wealth of knowledge to thrive in special and innovative product propositions thr
workplaces. Each student was provided a monthly digital communication for brands such as MAG
stipend and interned with an expert from different KITKAT, CEREGROW, NANGROW, MILKMAID, R
functions of your Company. HIGH PROTEIN. Lockdown relaxation after the
Your Company continued its focus on upskilling paved the way for channel stabilization and sh
their employees through various learning initiatives increased across offline channels.
such as, Henri Nestlé Scholarship: An empowered Supply Chain
learning solution that gives an opportunity to Your Company developed a resilient supply
employees to pursue any learning of their choice. supported business growth despite adversities
The organization reimbursed ` 50,000 per second wave of COVID-19. Staying agile it con
participant and had covered over 160 employees sourcing raw materials from over 400 supplier
with the expectation that each scholar teaches 100,000 farmers, while ensuring the safety of
other employees, covering over 200 employees. and customers.
Your Company also introduced ‘Ascent’ a nine- Price outlook for key categories like edible
month blended learning journey, designed to wheat, fuel remained firm to bullish while costs of pa
support employees transitioning to first time people materials continued to increase amid suppl
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
29
rising fuel and transportation costs. Input prices are in many emerging markets and developing eco
expected to be on bullish trend both globally and to World Economic Outlook 2021).
some extent locally. Fresh milk prices are expected to Advanced economies and many middle-income
remain firm with continued increase in demand and rise attained substantial vaccination rates, and sizable fisc
in feed costs to farmers. In an environment of raw helped cushion some of the adverse economic
and packaging material inflation, the Company pandemic. However multidimensional challeng
continues to keenly look for opportunities for cost the global economy such as subdued employm
optimization and efficiencies. Your Company is accelerating and rising debt levels.
its commitment towards sustainability by increasing Commodity prices soared in 2021 following the
purchase of sustainable oils, coffee, cocoa etc decline in 2020, with prices of several commod
To address short-term disruptions, it augmented all-time highs. Global energy prices surged in
co-manufacturing strategy, to enable speed to half of 2021, particularly for natural gas and co
market and accelerated the paperless invoicing recovering demand and constrained supply. N
platform. Your Company shifted to shorter planning commodity prices stabilized.
horizon, focusing on priority SKU’s and channel-wise Global inflation increased to 5.2% in 2021, beca
planning and upscaled transport control tower to persistent supply chain bottlenecks and rising
enhance stock and transit visibility. across the globe impacting global productio
Automation and digitalization across the supply pushing up prices of essential goods. Food pric
chain enhanced efficiency in processes and speed to 22% in 2021, reaching their highest levels in a
market providing transparency to suppliers, farmers, sharp increases in vegetable oils, cereals and d
customers and consumers. (FAO, 2021).
A simple, yet innovative example of this was the The surge in Covid infections in 2021 sapped c
timely implementation of a ‘telecaller model’ to take demand, but to a much more limited degree th
orders across trade channels. The front-line sales waves (World Bank Report 2022), though eme
colleagues stood tall to overcome serious logistical variants could further impair market confidence and d
obstacles and ensure availability. The efforts to recoveries.
ensure last mile access were aided by e- The pace of global economic recovery is expec
commerce and in particular hyperlocal channels. The in the near term as recurring pandemic waves
8,000 SMEs your Company worked with were economic activity. The recovery is also at risk
provided support by training, equipping them with persistent supply disruptions, inflationary pressures,
orders and advance payments. and climate-related issues. As the world confro
Quality, safety and compliance continues to pandemic, climate emergency its economic im
remain the backbone of supply chain operations gaining sharper focus.
team. Your Company enhanced quality in Indian Economy
distribution that helped deliver fresher products on The recovery that has been underway in the In
shelf and reduce carbon footprint in operations. with the ebbing of the second wave of th
In order to ensure sustainable logistics across the encountered headwinds from a rapid surge
value chain, your Company focused on alternative in a third wave marked by the rapid transmiss
mode of transportation such as railways/ waterways Omicron variant.
and optimizing vehicle fill rate. It introduced 4 waterways Accelerated rates of vaccination and substantia
in 2021 to strengthen sustainable logistics. Your mobility restrictions have improved consumer con
Company increased usage of bigger size vehicles (Deloitte Insights). Vaccination is importan
from 5.9% in 2019 to 9.8% in 2021, increased of the economy, and India delivered 157 crore
usage of railways from 0% in 2019 to 8.2% in 2021 covered 91 crore people with at least one dose
and increased vehicle payload utilization from with both doses (Economic Survey 2021-2022
90.3% in 2019 to 92.5% in 2021. India’s economy rebounded in the July–Septem
Management Analysis FY 2021–22. GDP grew at 8.4% year on year (
Global Economy FY2021–22, growth was driven by strong e
The global economy surged to an estimated 5.5% because of global economic recovery, and dom
growth in 2021 after contracting 3.4 % in 2020 investment as businesses ramped up productio
(United Nations World Economic Situation and festive demand (Deloitte Insights, 2022). In S
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
provided support by training, equipping them with persistent supply disruptions, inflationary pressures,
orders and advance payments. and climate-related issues. As the world confro
Quality, safety and compliance continues to pandemic, climate emergency its economic im
remain the backbone of supply chain operations gaining sharper focus.
team. Your Company enhanced quality in Indian Economy
distribution that helped deliver fresher products on The recovery that has been underway in the In
shelf and reduce carbon footprint in operations. with the ebbing of the second wave of th
In order to ensure sustainable logistics across the encountered headwinds from a rapid surge
value chain, your Company focused on alternative in a third wave marked by the rapid transmiss
mode of transportation such as railways/ waterways Omicron variant.
and optimizing vehicle fill rate. It introduced 4 waterways Accelerated rates of vaccination and substantia
in 2021 to strengthen sustainable logistics. Your mobility restrictions have improved consumer con
Company increased usage of bigger size vehicles (Deloitte Insights). Vaccination is importan
from 5.9% in 2019 to 9.8% in 2021, increased of the economy, and India delivered 157 crore
usage of railways from 0% in 2019 to 8.2% in 2021 covered 91 crore people with at least one dose
and increased vehicle payload utilization from with both doses (Economic Survey 2021-2022
90.3% in 2019 to 92.5% in 2021. India’s economy rebounded in the July–Septem
Management Analysis FY 2021–22. GDP grew at 8.4% year on year (
Global Economy FY2021–22, growth was driven by strong e
The global economy surged to an estimated 5.5% because of global economic recovery, and dom
growth in 2021 after contracting 3.4 % in 2020 investment as businesses ramped up productio
(United Nations World Economic Situation and festive demand (Deloitte Insights, 2022). In S
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

rural consumption in the FMCG sector increased growth potential. The COVID-19 pandemic led
58.2% YoY, twice as high as the increase in urban acceptance for processed food (KPMG 2021).
consumption of 27.7% (IBEF, 2021). and Tier 2 and 3 cities are expected to continu
India’s Consumer Price Index inflation stood at 5.6% YoY in demand for processed food.
December 2021. RBI’s consumer confidence survey on Investing in Innovation
both the present situation and future expectations Food companies need to continue to leverage t
suggests sustained uptick in consumer sentiment. knowledge of food habits, nutrition, quality and
Private consumption is poised to see stronger in order to innovate and renovate, and adapt t
recovery with rapid coverage in vaccination and normal. They must respond to new demands, reset d
faster normalisation of economic activity. relationships with consumers and reconsider th
India has taken an important step by committing to portfolio in the post-COVID era to make produ
reaching net-zero emissions by 2070 and reducing and allow consumers to make informed choice
the carbon intensity of the economy by 45 % by Buttressing E-commerce to fuel growth
2030 (PIB, November 2021) E-commerce had an increasing impact on the F
Opportunities and Risks globally during the pandemic as consumers inc
With the environment, economy, technology and online shopping. As COVID-19 changed consum
society undergoing radical shifts, their impacts FMCG firms saw a surge in the contribution of e-com
continue to challenge businesses and create risks overall sales during Covid waves, and stabiliza
and tensions, and opportunities for change and levels as waves receded.
Enhancing digital first with a human touch
renewal.
Consumers have become more digitally active.
Risks McKinsey, the COVID-19 pandemic has fundam
Supply chain challenges changed the pace of business, and the co
The worldwide supply chain continues to be affected superior technology capabilities had significant adv
by challenges relating to the COVID-19 meet new demands, companies are making dig
pandemic, including delays and disruption. technology investments, across the business m
Organizations need to reimagine and manage their enhance digital experience of the future and en
supply chains differently to ensure business blend with the physical experience, businesses
continuity and growth for the future and provide focus on making consumer experience more au
new solutions for customers to access products and human. This would mean bringing elements o
services. experience (touch, see, feel, smell, taste) as w
Digital vulnerabilities digital interactions more authentic by including
There has been a growing dependency on digital capabilities for wider customer reach and acce
systems which has been intensified during COVID19, with Accelerating sustainability and committing to p
increased usage of digital tools and digital Addressing climate change will require a multi-
payments, adoption of platforms and devices approach to collaborate and monitor progress,
that allow sensitive data to be shared with third foundation for a better world. This includes reg
parties - cloud service providers, data agriculture practices, a transition to 100% ren
aggregators, application programming interfaces electricity, as well as reformulating products to
and other technology-related intermediaries. more sustainable. There is a need for accelera
Additionally, there has been an increase in towards reducing greenhouse gas emissions, c
cybersecurity threats such as malware and recyclable or reusable packaging products.
ransomware attacks, misinformation and frauds
Quality and Safety
creating cyber risks for the business.
Your Company across all its factories introduce
Climate change continues
rules. Safety is a priority for your Company an
The economic crisis created by the COVID-19
taken into account right from design stage to e
pandemic could further delay efforts to tackle
class equipment, to ensure a safe workplace. B
climate change. Complete climate inaction could
ring-lock scaffolding has been deployed which
lead to losses projected at 18% of global GDP, with
ensured quick turnaround time but also taken
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
31
civil construction several levels higher. Across all differ materially from those either expressed o
operating sites, “Line of risk” training has been the statement depending on the circumstances
deployed to increase people awareness to prevent Directors’ Responsibility Statement
any body parts in line of any energy, which can The Directors state that:
cause harm in any way. a) in the preparation of the annual accounts fo
Environment Sustainability ended 31 December 2021, the applicable acco
st
Reduction in Energy water usage, wastewater and direct standards have been followed and no material
Green House Gas Emissions have been made from the same;
Your Company has sustainability as part of its DNA. b) they have selected such accounting policies
The focus continued on improving operational them consistently and made judgments and
efficiencies by reducing consumption of natural that are reasonable and prudent so as to give
resources and reduction in energy and GHG view of the state of affairs of the Compan
emissions. December 2021 and of the profits of the Company fo
From 2006 to 2021, for every ton of c) they have taken proper and sufficient care fo
production, your Company reduced the usage of maintenance of adequate accounting records in
energy by around 43%, water usage by around with the provisions of the Act for safeguarding
52%, generation of wastewater by around 67% and the Company and for preventing and detecting
specific direct GHG emissions by 57%. other irregularities;
Investing in Renewable Energy d) they have prepared the annual accounts on
Your Company’s key renewable energy projects concern
contributed to GHG savings. This was implemented basis;
through the higher purchase of solar power for the e) they have laid down internal financial controls
Choladi factory and Nanjangud factory and by the Company and that such internal financial cont
replacement of fossil fuel with clean fuel for steam and were operating effectively; and
generation at the Bicholim factory. f) they have devised proper systems to ensure
Packaging and Plastic Waste Management with the provisions of all applicable laws and th
Your Company will be annually eliminating 30 million systems were adequate and operating effectiv
plastic straws. These paper straws are responsibly
Directors and Key Managerial Personne
sourced from renewable sources and certified by the
Mr. Matthias Christoph Lohner (DIN: 08934420
Forest Stewardship Council (FSC). This transition has
Director of the Company, retires by rotation at
also been incorporated for the packs of NESCAFÉ
and being eligible, has offered himself for re-a
range of cold coffees.
resolution seeking approval of the member
EPR (Extended Producer Responsibility) Initiative
appointment, forms part of the Notice of the 6
Your Company engaged with various waste
the terms of his appointment, his re-appointm
agencies, for end- to-end management of plastic
AGM as a director retiring by rotation would no
waste. In 2021, your Company achieved EPR of
break in his appointment as a Whole-time Dire
23,600 MT tonnes through plastic waste
designated as “Executive Director – Technical”
management.
Based on the recommendation of the Nom
Nestlé a+ brand collaborated with Tetra Pak to
Remuneration Committee, the Board of Directo
launch Cartons to Classroom, an initiative to
Company, has recommended appointment of M
increase awareness about recycling in India by
Bansal as an Independent Non-Executive Direc
converting used beverage cartons to create
Company for a consecutive term of five years from
classroom furniture for schools for less-privileged
to the members for their approval by way of a
children.
resolution at the 63 AGM. Ms. Anjali Bansal fulfils
rd
Sustainable Logistics
provided in the Nomination and Remuneration P
Your Company is one of the pioneers to transport
Company including her expertise, experience, profic
consumer goods through railways and has initiated
integrity.
4 inland waterways for strengthening sustainable
Brief resume, nature of expertise in specific func
logistics.
areas, disclosure of relationships between dire
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
Mr. Matthias Christoph Lohner (DIN: 08934420
Forest Stewardship Council (FSC). This transition has
Director of the Company, retires by rotation at
also been incorporated for the packs of NESCAFÉ
and being eligible, has offered himself for re-a
range of cold coffees.
resolution seeking approval of the member
EPR (Extended Producer Responsibility) Initiative
appointment, forms part of the Notice of the 6
Your Company engaged with various waste
the terms of his appointment, his re-appointm
agencies, for end- to-end management of plastic
AGM as a director retiring by rotation would no
waste. In 2021, your Company achieved EPR of
break in his appointment as a Whole-time Dire
23,600 MT tonnes through plastic waste
designated as “Executive Director – Technical”
management.
Based on the recommendation of the Nom
Nestlé a+ brand collaborated with Tetra Pak to
Remuneration Committee, the Board of Directo
launch Cartons to Classroom, an initiative to
Company, has recommended appointment of M
increase awareness about recycling in India by
Bansal as an Independent Non-Executive Direc
converting used beverage cartons to create
Company for a consecutive term of five years from
classroom furniture for schools for less-privileged
to the members for their approval by way of a
children.
resolution at the 63 AGM. Ms. Anjali Bansal fulfils
rd
Sustainable Logistics
provided in the Nomination and Remuneration P
Your Company is one of the pioneers to transport
Company including her expertise, experience, profic
consumer goods through railways and has initiated
integrity.
4 inland waterways for strengthening sustainable
Brief resume, nature of expertise in specific func
logistics.
areas, disclosure of relationships between dire
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

details of directorship held in other companies, membership of committees
Your
of the
Company
Board along
haswith
alsolisted
formulated
entities from
a CSR
whichPolicy
she re
33
implications of COVID-19 and its precautionary awareness about anti-littering and segregation
measures, your Company in collaboration with its Given the pandemic situation, as a part of Hilld
NGO partner held virtual training sessions for the Company along with its partners organized vir
beneficiaries. for waste workers in Mussoorie, Nainital, Maha
Project Jagriti Ponda and Dalhousie to help them adapt to the
Project Jagriti continued to focus on creating an the new normal, equipping them with safer wo
enabling environment for the best health outcomes, conditions. They were provided with PPE kits a
involving the health care system and stakeholders and trained how to use it. Training was also pr
from the community. Your Company had launched collect waste with minimum contact, ensure pr
this project in partnership with Mamta Health sanitation and safety before meeting other peo
Institute for Mother and Child as part of its respective homes. News ways of collecting and
commitment to inspire people to lead healthier lives. waste were introduced, such as establishing
As a result of COVID-19, beneficiaries of Project Jagriti were segregation (dry waste, wet waste, domestic
trained virtually about the preventive measures of waste and hazardous waste) for collection and
COVID-19. In 2021, 1.9 million beneficiaries (0.5 direct disposal of waste. Waste workers were trained
and 1.4 million indirect) were reached. smartphones and digital monitoring apps req
Till 2021, the programme has reached out to 8.4 monitoring the collection and segregation of w
million beneficiaries (2.7 direct and 5.7 indirect) across 8 waste workers were also trained in availing rel
States/ UTs, strengthening the continuum of care. government schemes.
Project Serve Safe Food Business Responsibility Report
Your Company launched Project ‘Serve Safe Food’ in Creating Shared Value is fundamental to how y
2016 with National Association of Street Vendors of does business. Your Company believes that it c
India (NASVI), to provide training to the street food successful in the long term by creating value b
vendors and enable them to voluntarily adopt the shareholders and for society. Your Company is
hygienic practices that improve the food quality. The needs of the communities and works to make
behaviour-change that this initiative has brought has difference and create maximum value for the s
benefitted 25,900 street food vendors across 19 been conducting business in a way that deliver
States/UTs till 2021. shareholder value and benefits society.
As a result of COVID-19, street food vendors were As stipulated under the Listing Regulations, the
anxious about impact of the pandemic on their Responsibility Report describing the initiatives
livelihoods. Along with its NGO partner, Nidan your Company from an environmental, social an
Company organized training sessions on food safety, perspective is annexed as Annexure 3 and form
hygiene, COVID-19 precautionary measures and part of the Annual Report.
digital payments. Your Company distributed over Statutory Auditors and Auditors’ Repor
36,900 grocery kits across various locations to As per Section 139 of the Companies Act,
provide relief to the street vendors whose with the Companies (Audit and Auditors) Rules
livelihoods had been severely impacted by COVID- term of M/s. B S R and Co. LLP, Chartered Acc
19. Registration No.: 101248W/W-100022) (“M/s.
Plastic Waste Management Awareness Statutory Auditors of the Company, expires at
Plastics play a key role in delivering a safe food of 63 AGM of the Company.
rd
supply from farm to fork and also helps in The Report given by M/s. BSR on the financial statem
preventing food wastage. However, plastic waste has Company for the year 2021 is part of the Annu
become a significant environment challenge. Your Notes on financial statement referred to in the Audit
Company is creating awareness about anti- littering self-explanatory and do not call for any further
and waste segregation at source which is a key to The Auditor’s Report does not contain any quali
establish sustainable waste management systems. reservation, adverse remark or disclaimer. During th
Your Company has worked towards creating an review, the Auditors had not reported any mat
integrated plastic waste management model Section 143 (12) of the Act, therefore no detai
through its project titled “HILLDAARI” in be disclosed under Section 134 (3) (ca) of the
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
As a result of COVID-19, street food vendors were
anxious about impact of the pandemic on their Responsibility Report describing the initiatives
livelihoods. Along with its NGO partner, Nidan your Company from an environmental, social an
Company organized training sessions on food safety, perspective is annexed as Annexure 3 and form
hygiene, COVID-19 precautionary measures and part of the Annual Report.
digital payments. Your Company distributed over Statutory Auditors and Auditors’ Repor
36,900 grocery kits across various locations to As per Section 139 of the Companies Act,
provide relief to the street vendors whose with the Companies (Audit and Auditors) Rules
livelihoods had been severely impacted by COVID- term of M/s. B S R and Co. LLP, Chartered Acc
19. Registration No.: 101248W/W-100022) (“M/s.
Plastic Waste Management Awareness Statutory Auditors of the Company, expires at
Plastics play a key role in delivering a safe food of 63 AGM of the Company.
rd
supply from farm to fork and also helps in The Report given by M/s. BSR on the financial statem
preventing food wastage. However, plastic waste has Company for the year 2021 is part of the Annu
become a significant environment challenge. Your Notes on financial statement referred to in the Audit
Company is creating awareness about anti- littering self-explanatory and do not call for any further
and waste segregation at source which is a key to The Auditor’s Report does not contain any quali
establish sustainable waste management systems. reservation, adverse remark or disclaimer. During th
Your Company has worked towards creating an review, the Auditors had not reported any mat
integrated plastic waste management model Section 143 (12) of the Act, therefore no detai
through its project titled “HILLDAARI” in be disclosed under Section 134 (3) (ca) of the
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

The Board of Directors of the Company at their Secretarial Auditors and Secretarial StandardsThe Secreta
meeting held on 11 November 2021, on the
th
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 63 AGM of the Company for a term of
rd
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 63 rd
AGM till the conclusion of 68 AGM of the Company

th
pursuant to Section 139 of the Act, forms part of the

Notice of the 63 AGM of the Company. The
rd
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 31 December
st
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 31 December 2022.
st
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 63 rd
AGM of your Company.

35
Related Party TransactionsYour Company has formulated a policy onAsrelated
on 31st
partyDecember
transactions
2021,
which
theis RMC
also available
comprised
on the
of

MAGGI Noodles in the past, your Company has indulged in unfair trade Code,
practice,
under
soldwhich
defective
employees
goods to
canthe
report
public
Infant
and Code
sold goods
viola
37
at the Workplace (Prevention, Prohibition and General
Redressal) Act, 2013 (“POSH”), your Company has a During the year, there were no transaction
robust mechanism in place to redress complaints disclosure or reporting in respect of matte
reported under it. The Company has complied with (a) details relating to deposits covered under C
provisions relating to the constitution of Internal the Act; (b) issue of equity shares with differential ri
Committee under POSH. The Internal Committee dividend, voting or otherwise; (c) issue of shares (inc
(IC) comprises of internal members and external equity shares) to employees of the Company u
member who has extensive experience in the field. In scheme; (d) raising of funds through preferential allo
2021, one case of sexual harassment was reported, qualified institutions placement; (e) significant or ma
which was investigated and resolved as per the passed by the Regulators or Courts or Tribuna
provisions of the POSH. During the course of 2021, impact the going concern status and Company
initiatives were undertaken to demonstrate the in future; (f) pendency of any proceeding under the
Company’s zero tolerance philosophy against Bankruptcy Code, 2016; and (g) instance of one-time
discrimination and sexual harassment, which any bank or financial institution.
included creation of comprehensive and easy to Trade Relations
understand training and communication material The Company maintained healthy, cordial and
which are also made easily accessible. In addition, industrial relations at all levels. Despite severe
online workshops were also run for the employees the enthusiasm and unstinting efforts of th
to enhance awareness and knowledge of other have enabled the Company to remain at the fo
biases that may influence thinking and actions by Industry.
running the unconscious bias session. Your Company continued to receive co-ope
Statement on Investor Education and unstinted support from the distributors, retaile
Protection Fund suppliers and others associated with the Comp
Pursuant to the provisions of Section 124 of the Act, trading partners. The Directors wish to place o
Investor Education and Protection Fund Authority appreciation for the same and your Company w
(Accounting, Audit, Transfer and Refund) Rules, its endeavor to build and nurture strong links w
2016 (“IEPF Rules”) read with the relevant circulars based on mutuality, respect and co-operation
and amendments thereto, the amount of dividend other and consistent with consumer interest.
remaining unpaid or unclaimed for a period of seven Appreciation
years from the due date is required to be Your Company has been able to operate efficiently be
transferred to the Investor Education and Protection culture of professionalism, creativity, integrity
Fund (“IEPF”), constituted by the Central continuous improvement in all functions and a
Government. The Company had, accordingly, the efficient utilization of the Company’s resources fo
transferred ` 4,365,900/- and ` 5,114,640/-, profitable growth.
being the unpaid and unclaimed dividend amount The Directors hereby wish to place on record t
pertaining to Final dividend 2013 & Interim Dividend appreciation of the efficient and loyal services rend
2014; and Second Interim 2014, respectively, during every employee, without whose whole-hearted
the year 2021, to the IEPF. overall satisfactory performance would not hav
Pursuant to the provisions of IEPF Rules, all shares possible. Your Directors look forward to the long-te
in respect of which dividend has not been paid or confidence.
claimed for seven consecutive years shall be On behalf of the Board of Directors
transferred by the Company to the designated Date : 17 February 2022
th
Suresh Na
Demat Account of the IEPF Authority (“IEPF Place : Gurugram Chairman and Manag
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
remaining unpaid or unclaimed for a period of seven Appreciation
years from the due date is required to be Your Company has been able to operate efficiently be
transferred to the Investor Education and Protection culture of professionalism, creativity, integrity
Fund (“IEPF”), constituted by the Central continuous improvement in all functions and a
Government. The Company had, accordingly, the efficient utilization of the Company’s resources fo
transferred ` 4,365,900/- and ` 5,114,640/-, profitable growth.
being the unpaid and unclaimed dividend amount The Directors hereby wish to place on record t
pertaining to Final dividend 2013 & Interim Dividend appreciation of the efficient and loyal services rend
2014; and Second Interim 2014, respectively, during every employee, without whose whole-hearted
the year 2021, to the IEPF. overall satisfactory performance would not hav
Pursuant to the provisions of IEPF Rules, all shares possible. Your Directors look forward to the long-te
in respect of which dividend has not been paid or confidence.
claimed for seven consecutive years shall be On behalf of the Board of Directors
transferred by the Company to the designated Date : 17 February 2022
th
Suresh Na
Demat Account of the IEPF Authority (“IEPF Place : Gurugram Chairman and Manag
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.

INDEPENDENT AUDITOR’S Report on the Audit of the Financial Statements
We have audited the financial statements of Nestlé In
REPORT TO THE MEMBERS OF Company”), which comprise the balance sheet as at 31 D
and the statement of profit and loss (including other c
NESTLÉ INDIA LIMITED income), statement of changes in equity and statement o
the year then ended, and notes to the financial statements
summary of the significant accounting policies and oth
information.
In our opinion and to the best of our information
to the explanations given to us, the aforesaid financial
the information required by the Companies Act, 2013 (“A
manner so required and give a true and fair view in con
accounting principles generally accepted in India, of the st
the Company as at 31 December 2021, and profit and othe
income, changes in equity and its cash flows for the year e
Basis for Opinion
We conducted our audit in accordance with the Standards
(SAs) specified under section 143(10) of the Act. Ou
under those SAs are further described in the Auditor’s
for the Audit of the Financial Statements section of ou
independent of the Company in accordance with the Code
by the Institute of Chartered Accountants of India togethe
ethical requirements that are relevant to our audit of
statements under the provisions of the Act and the Ru
and we have fulfilled our other ethical responsibilities in a
these requirements and the Code of Ethics. We believe tha
evidence we have obtained is sufficient and appropriate
basis for our opinion on the financial statements.
Key Audit Matters
Key audit matters are those matters that, in our profession
were of most significance in our audit of the financial
the current period. These matters were addressed in th
audit of the financial statements as a whole, and in for
thereon, and we do not provide a separate opinion on thes
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 Our audit procedures included:
control has been transferred to the customer and is measured • We assessed the appropriateness of the rev
net of trade discounts, rebates and pricing allowances to recognition accounting policies by comparing with
customers (collectively ‘trade spends’). applicable accounting standards.
There is a risk that revenue may be overstated because of • We evaluated the design, tested the implementation
fraud, resulting from the pressure local management may feel to operating effectiveness of key internal controls including g
achieve performance targets. Revenue is also an important IT controls and key IT application controls over recogni
element of how the company measures its performance, upon revenue.
which management is incentivized. The Company focuses on • We performed substantive testing by selecting sampl
revenue as a key performance measure, which could create an revenue transactions recorded during the year by testing t
incentive for revenue to be recognized before control has been underlying documents which included invoices, good dispa
transferred. notes, customer acceptances and shipping documents
applicable).
• We carried out analytical procedures on rev
recognised during the year to identify unusual variances.
• We tested, on a sample basis, specific rev
transactions recorded before and after the financial year e
date to determine whether the revenue had been reco
in the appropriate financial period.
• We tested manual journal entries posted to reven
identify unusual items.
Provision for Contingencies

See note 2, 22, 26 and 38 to the financial statements
The management is required to make judgements and estimates in Our audit procedures included:
relation to the issues and exposures arising from a range of • We tested the design, implementation and ope
matters relating to direct tax, indirect tax, claims, general legal effectiveness of key internal controls around the
proceedings and other eventualities arising in the regular course of recognition and measurement of provisions.
business. The Company is also subject to complexities arising from • We inquired the status in respect of significant provis
uncertain tax positions on deductibility of expenses. with the Company’s internal tax and legal team.
The key judgement lies in determining the likelihood and • We involved our subject matter experts, where
magnitude of an unfavorable outcome and interpretations of required, to assess the value of provisions in light of t
the legal aspects, tax legislations and judgements previously nature of the exposures, applicable regulations and rela
made by authorities. By nature, these are complex and include correspondence with the authorities.
many variables. • We challenged the assumptions and critical judgem
made by the Company which impacted their estimate of pr
required, considering judgements previously made by
authorities in the relevant jurisdictions or any relevant opi
given by the Company’s advisors and assessing whether
was an indication of management bias.
• We verified the computation of provision on a test ch
basis.

Provision for defined benefit pension plan
See note 3 and 36 to the financial statements
During the year, the defined benefit pension scheme for certain Our audit procedures included:
category of employees was modified and replaced by ‘Future ready • We tested design & implementation and opera
plan’. effectiveness of key internal controls over completeness an
The defined benefit obligation for past period of service as per the accuracy of data and assumptions used in valuation of defi
‘Future Ready Plan’ has been determined based on actuarial benefit obligation.
valuation carried out by an independent actuary using the • We evaluated and challenged the key assumption
employee data, methods and assumptions as per the modified valuation of defined benefit obligation.
plan. • We tested the data used in valuation of defined
The aforesaid valuation involves voluminous employee data, obligation on a test check basis.
subjectivity and judgement in determination of key assumptions • We assessed the appropriateness of the accou
used in valuation of the defined benefit obligation. treatment and disclosures in the financial statements i
Considering this is a significant non-recurring transaction and respect of defined benefit pension scheme and change
subjectivity and judgements involved, there is a risk of data scheme/plan during the year in accordance with Ind AS 19
and assumptions being inappropriate resulting in an inaccurate Employee Benefits.
valuation of defined benefit obligation.
Other Information
The Company’s management and Board of Directors are
responsible for the other information. The other information with the provisions of the Act for safeguarding of the as
comprises the information included in the Company’s annual Company and for preventing and detecting frauds and o
report, but does not include the financial statements and our irregularities; selection and application of appropriat
auditors’ report thereon. policies; making judgments and estimates that are re
Our opinion on the financial statements does not cover the prudent; and design, implementation and maintenance
other information and we do not express any form of assurance internal financial controls that were operating effective
conclusion thereon. accuracy and completeness of the accounting records
In connection with our audit of the financial statements, our preparation and presentation of the financial statemen
responsibility is to read the other information and, in doing so, and fair view and are free from material misstateme
consider whether the other information is materially inconsistent to fraud or error.
with the financial statements or our knowledge obtained in In preparing the financial statements, the Manag
the audit or otherwise appears to be materially misstated. If, of Directors are responsible for assessing the Compa
based on the work we have performed, we conclude that there continue as a going concern, disclosing, as applicable, m
is a material misstatement of this other information, we are to going concern and using the going concern basis
required to report that fact. We have nothing to report in this unless the Board of Directors either intends to liquida
regard. to cease operations, or has no realistic alternative but to
Management’s and Board of Directors’ Responsibility The Board of Directors is also responsible for overseeing
for the financial reporting process.
Financial Statements Auditor’s Responsibilities for the Audit of
The Company’s Management and Board of Directors are Statements
responsible for the matters stated in section 134(5) of Our objectives are to obtain reasonable assurance a
the Act with respect to the preparation of these financial financial statements as a whole are free from mate
statements that give a true and fair view of the state of whether due to fraud or error, and to issue an auditor’s
affairs, profit/loss and other comprehensive income, changes in includes our opinion. Reasonable assurance is a high lev
equity and cash flows of the Company in accordance with but is not a guarantee that an audit conducted in accord
the accounting principles generally accepted in India, always detect a material misstatement when it exists. M
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
can arise from fraud or error and are considered material if, any significant deficiencies in internal control that we iden
individually or in the aggregate, they could reasonably be audit.
expected to influence the economic decisions of users taken on We also provide those charged with governance with
the basis of these financial statements. we have complied with relevant ethical requiremen
As part of an audit in accordance with SAs, we exercise independence, and to communicate with them all re
professional judgment and maintain professional skepticism other matters that may reasonably be thought to be
throughout the audit. We also: independence, and where applicable, related safeguards
• Identify and assess the risks of material misstatement of the From the matters communicated with those charged
financial statements, whether due to fraud or error, design and we determine those matters that were of most significanc
perform audit procedures responsive to those risks, and obtain the financial statements of the current period and ar
audit evidence that is sufficient and appropriate to provide a key audit matters. We describe these matters in our a
basis for our opinion. The risk of not detecting a material unless law or regulation precludes public disclosure ab
misstatement resulting from fraud is higher than for one or when, in extremely rare circumstances, we determi
resulting from error, as fraud may involve collusion, forgery, should not be communicated in our report because the a
intentional omissions, misrepresentations, or the override of consequences of doing so would reasonably be expected
internal control. public interest benefits of such communication.
• Obtain an understanding of internal control relevant to Report on Other Legal and Regulatory Require
the audit in order to design audit procedures that are 1. As required by the Companies (Auditors’ Report) Ord
appropriate in the circumstances. Under section 143(3) Order”) issued by the Central Government in terms of
(i) of the Act, we are also responsible for expressing our the Act, we give in the “Annexure A” a statement on th
opinion on whether the company has adequate internal specified in paragraphs 3 and 4 of the Order, to the exten
financial controls with reference to financial statements in (A) As required by Section 143(3) of the Act, we rep
place and the operating effectiveness of such controls. a) We have sought and obtained all the informatio
• Evaluate the appropriateness of accounting policies explanations which to the best of our knowledge
used and the reasonableness of accounting estimates and necessary for the purposes of our audit.
related disclosures in the financial statements made by the b) In our opinion, proper books of account as required
Management and Board of Directors. kept by the Company so far as it appears from our examin
• Conclude on the appropriateness of the Management books.
and Board of Directors use of the going concern basis of c) The balance sheet, the statement of profit and lo
accounting and, based on the audit evidence obtained, whether other comprehensive income), the statement of change
a material uncertainty exists related to events or conditions statement of cash flows dealt with by this report are
that may cast significant doubt on the Company’s ability to with the books of account.
continue as a going concern. If we conclude that a material d) In our opinion, the aforesaid financial statement
uncertainty exists, we are required to draw attention in our Ind AS specified under section 133 of the Act.
auditor’s report to the related disclosures in the financial e) On the basis of the written representations received
statements or, if such disclosures are inadequate, to modify directors as on 31 December 2021 taken on record by th
our opinion. Our conclusions are based on the audit Directors, none of the directors is disqualified as on 31 D
evidence obtained up to the date of our auditor’s report. from being appointed as a director in terms of Sectio
However, future events or conditions may cause the Company to Act.
cease to continue as a going concern. f) With respect to the adequacy of the internal
• Evaluate the overall presentation, structure and content of with reference to financial
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
statements or, if such disclosures are inadequate, to modify directors as on 31 December 2021 taken on record by th
our opinion. Our conclusions are based on the audit Directors, none of the directors is disqualified as on 31 D
evidence obtained up to the date of our auditor’s report. from being appointed as a director in terms of Sectio
However, future events or conditions may cause the Company to Act.
cease to continue as a going concern. f) With respect to the adequacy of the internal
• Evaluate the overall presentation, structure and content of with reference to financial
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

statements of the Company and the operating iv. The disclosures in the financial statements regarding h
effectiveness of such controls, refer to our separate as dealings in specified bank notes during the period from 8 N
Report in “Annexure B”. 30 December 2016 have not been made in these financial state
(B) With respect to the other matters to be included in do not pertain to the financial year ended 31 December 2021.
the Auditors’ Report in accordance with Rule 11 of the (C) With respect to the matter to be included in the Auditors’
Companies (Audit and Auditors) Rules, 2014, in our section 197(16):
opinion and to the best of our information and In our opinion and according to the information and explan
according to the explanations given to us: us, the remuneration paid by the company to its directors
i. The Company has disclosed the impact of current year is in accordance with the provisions of Section 197
pending litigations as at 31 December 2021 on its remuneration paid to any director is not in excess of the limit la
financial position in its financial statements - Refer Note Section 197 of the Act. The Ministry of Corporate Affairs ha
38 and 44 to the financial statements; other details under Section 197(16) which are required to b
ii. The Company did not have any long-term contracts upon by us.
including derivate contracts for which there were any For B S R & Co. LLP
material foreseeable losses.
iii. There has been no delay in transferring Chartered Accountants
Firm’s Registration No. 101248W/W-100022
amounts, required to be transferred, to the Investor
Education and Protection Fund by the Company. Place: Delhi Vikram Advani
Date: 17 February 2022 Partner
Membership No. 091765
UDIN: 22091765ACXFTN7243
Annexure - A to the Independent Auditors’ Report of us, the Company has not accepted any deposits covered u
even to 76 or any other relevant provisions of the Companies A
rules framed there under. Accordingly, clause 3(v) of th
date on the financial statements of Nestlé India applicable.
Limited (vi) We have broadly reviewed the records maintaine
(i) (a) The Company has maintained proper records Company pursuant to the rules prescribed by Central Gov
showing full particulars, including quantitative details and maintenance of cost records under sub section (1) of Se
situation of fixed assets. Act and are of the opinion that prima facie, the presc
(b) The Company has a regular programme of physical and records have been made and maintained. However, w
verification of its fixed assets by which all fixed assets are a detailed examination of the records.
verified in a phased manner over a period of two years. In our (vii) (a) According to the information and explana
opinion, the periodicity of physical verification is reasonable and on the basis of our examination of the records of th
having regard to the size of the Company and the nature of amounts deducted/ accrued in the books of account i
its assets. In accordance with the programme, certain assets undisputed statutory dues including Provident Fund,
were physically verified by the management during the current Insurance, Income-tax, Duty of Customs, Goods and S
year. As informed to us and based on records examined by and other material statutory dues have been regul
us, no material discrepancies were noticed on such verification. during the year by the Company with the appropriate aut
(c) According to the information and explanations given According to the information and explanations given
to us and based on the examination of the registered sale the basis of our examination of the records of the Co
deed / transfer deed / conveyance deed provided to us, we undisputed amounts payable in respect of Provident F
report that, the title deeds, comprising all the immovable State Insurance, Income-tax, Duty of customs, Goods
properties of land and buildings which are freehold, are held in Tax, Cess and other material statutory dues were in arre
the name of the Company as at the balance sheet date. In December 2021 for a period of more than six months from
respect of immovable properties of land and buildings that became payable.
have been taken on lease and disclosed as fixed asset in the (b) According to the information and explanations
financial statements, the lease agreements are in the name of on the basis of our examination of the records of the
the Company, where the Company is the lessee in the except as stated in Appendix 1, there are no dues of
agreement. Goods and Services tax, Sales tax, Service tax, Duty of
(ii) The inventory, except goods in transit and stock of excise or Value added tax which have not been depo
lying with third parties, has been physically verified by the of any dispute.
management during the year. In our opinion, the frequency (viii) According to the information and explanations given
of such verification is reasonable. Confirmations have the basis of our examination of the records of the Co
been obtained for stock lying with third parties at the Company has not defaulted in repayment of dues to
year end. According to the information and explanations given Company did not have any dues payable to any financial
to us and based on records examined by us, the discrepancies government or debentures holders during the year.
noticed on physical verification of inventory as compared to (ix) The Company has not raised any money by
book records were not material and have been properly dealt public offer, further public offer (including debt instru
with in the books of account. term loans during the year. Accordingly, the provision
(iii) According to the information and explanations given to us of the Order are not applicable to the Company.
and on the basis of our examination of the records of the (x) According to the information and explanations given
Company, the Company has not granted any loans, secured or material fraud by the Company or no material fraud o
unsecured, to companies, firms, Limited Liability Partnerships its officers or employees, has been noticed or reported du
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
noticed on physical verification of inventory as compared to (ix) The Company has not raised any money by
book records were not material and have been properly dealt public offer, further public offer (including debt instru
with in the books of account. term loans during the year. Accordingly, the provision
(iii) According to the information and explanations given to us of the Order are not applicable to the Company.
and on the basis of our examination of the records of the (x) According to the information and explanations given
Company, the Company has not granted any loans, secured or material fraud by the Company or no material fraud o
unsecured, to companies, firms, Limited Liability Partnerships its officers or employees, has been noticed or reported du
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

(xi) According to the information and explanations given to allotment or private placement of shares or fully or
us and based on our examination of the records, the debentures during the year. Accordingly, clause 3(xiv)
Company has paid or provided for managerial
remuneration in accordance with the requisite approvals (xv) According to the information and explanations given
mandated by the provisions of section 197 read with on our examination of the records of the Company, the C
Schedule V to the Act. entered into non- cash transactions with directors or p
(xii) In our opinion and according to the information and with him. Accordingly, clause 3(xv) of the Orde
explanations given to us, the Company is not a Nidhi (xvi) According to the information and explanations given to
Company. Accordingly, clause 3(xii) of the Order is not not required to be registered under section 45-IA of the Re
applicable.
(xiii) According to the information and explanations given to us For
and based on our examinations of the records of the Company, Charter
transactions with the related parties are in compliance with Firm’s registration no.: 10
sections 177 and 188 of the Act, where applicable. The details of
such related party transactions have been disclosed in the Place: Delhi
financial statements as required by applicable accounting Date: 17 February 2022
standards. Membership No.: 091765 UDIN: 2209
(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
Appendix 1 to the statement on the matters specified in paragraph vii(b) of the Companies Auditors Rep
Name of the Statute Nature of Amount Amount Period to which Forum where c
Dues Paid amount relates is pending
under
Central excise Act, 1944 Duty of Excise 49.4 protest
43.8 September 1996 - December 2000, Supreme Court
July 2001 to August 2001
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 731.5 - Nov-17 to Jun-18 National Anti-Profiteering
Services Tax 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- High Court
2009, 2014-2015
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 Boa
Central Sales Tax/ Value Added Tax Sales Tax/ VAT 7.5 1.9 2005- 2007, 2008-2009, 2011- Commissioner (Appeals)
2012, 2014-2015
Central Sales Tax/ Value Added Tax Sales Tax/ VAT 198.3 1.5 2004- 2005, 2010-2012, 2013- Commissioner
2014, 2015-2017
Central Sales Tax/ Value Added Tax Sales Tax/ VAT 201.5 1.0 2010-11,2014-16 Joint Commissioner (Appea
Central Sales Tax/ Value Added Tax Sales Tax/ VAT 201.0 5.2 2008-10, 2011-2012, 2013-16, Joint Commissioner
2017-2018
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 authorit
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 Tribu
Annexure B to the Independent Auditors’ report with reference to financial statements and their operating
on the financial statements of Nestlé India Limited audit of internal financial controls with reference to fina
included obtaining an understanding of such internal
for the year ended 31 December 2021 assessing the risk that a material weakness exists, and testi
Report on the internal financial controls with the design and operating effectiveness of internal control bas
reference to the aforesaid financial statements risk. The procedures selected depend on the auditor’s judgem
under Clause (i) of Sub-section 3 of Section 143 of assessment of the risks of material misstatement
statements, whether du
the Companies Act, 2013 (“the Act”)
We believe that the audit evidence we have obtained
(Referred to in paragraph 1(A)(f) under ‘Report on appropriate to provide a basis for our audit opinion o
Other Legal and Regulatory Requirements’ section of internal financial controls with reference to fin
our report of even date) Meaning of Internal Financial controls with
Opinion Financ
We have audited the internal financial controls with reference to A company’s internal financial controls with refe
financial statements of Nestlé India Limited (“the Company”) as statements is a process designed to provide reasonable ass
of 31 December 2021 in conjunction with our audit of the the reliability of financial reporting and the prepar
financial statements of the Company for the year ended on that statements for external purposes in accordance with g
date. accounting principles. A company’s internal fina
In our opinion, the Company has, in all material respects, reference to financial statements include those policies and
adequate internal financial controls with reference to financial (1) pertain to the maintenance of records that, in r
statements and such internal financial controls were operating accurately and fairly reflect the transactions and dispositions o
effectively as at company; (2) provide reasonable assurance that transaction
31 December 2021, based on the internal financial controls necessary to permit preparation of financial statements
with reference to financial statements criteria established by generally accepted accounting principles, and that receipts a
the Company considering the essential components of internal the company are being made only in accordance with
control stated in the Guidance Note on Audit of Internal management and directors of the company; and (3) p
Financial Controls Over Financial Reporting issued by the assurance regarding prevention or timely detection
Institute of Chartered Accountants of India (the “Guidance acquisition, use, or disposition of the company’s asset
Note”). material effect on the fin
Management’s Responsibility for Internal Financial Inherent Limitations of Internal Financia
Controls Reference to Financ
The Company’s management and the Board of Directors are Because of the inherent limitations of internal finan
responsible for establishing and maintaining internal financial reference to financial statements, including the possib
controls based on the internal financial controls with reference improper management override of controls, material misst
to financial statements criteria established by the Company error or fraud may occur and not be detected. Also, p
considering the essential components of internal control evaluation of the internal financial controls with ref
stated in the Guidance Note. These responsibilities include the statements to future periods are subject to the risk that th
design, implementation and maintenance of adequate internal controls with reference to financial statements may be
financial controls that were operating effectively for ensuring the because of changes in conditions, or that the degree of co
orderly and efficient conduct of its business, including policies or procedure
adherence to company’s policies, the safeguarding of its For
assets, the prevention and detection of frauds and errors,
the accuracy and completeness of the accounting records, Charter
and the timely preparation of reliable financial information, as Firm’s Registration No. 10
required under the Companies Act, 2013. Place: Delhi
Auditor’s Responsibility Date: 17 February 2022
Our responsibility is to express an opinion on the Company’s Membership No. 091765 UDIN: 2209
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
to financial statements criteria established by the Company error or fraud may occur and not be detected. Also, p
considering the essential components of internal control evaluation of the internal financial controls with ref
stated in the Guidance Note. These responsibilities include the statements to future periods are subject to the risk that th
design, implementation and maintenance of adequate internal controls with reference to financial statements may be
financial controls that were operating effectively for ensuring the because of changes in conditions, or that the degree of co
orderly and efficient conduct of its business, including policies or procedure
adherence to company’s policies, the safeguarding of its For
assets, the prevention and detection of frauds and errors,
the accuracy and completeness of the accounting records, Charter
and the timely preparation of reliable financial information, as Firm’s Registration No. 10
required under the Companies Act, 2013. Place: Delhi
Auditor’s Responsibility Date: 17 February 2022
Our responsibility is to express an opinion on the Company’s Membership No. 091765 UDIN: 2209
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
BALANCE SHEET AS AT 31 DECEMBER 2021

NOTES As at
31 December 2021
(` in million)
ASSETS
Non-current assets
Property, Plant and Equipment 4 26,529.4
Capital work-in-progress 2,462.3
Right of Use Assets 5 3,410.3
Financial Assets Investments
6 7,107.0
Loans 7 490.9
Deferred Tax Assets (net) 8 258.4
Other non-current assets 9 14,453.4
54,711.7
Current assets
Inventories 10 15,802.2
Financial Assets
Investments 11 632.8
Trade receivables 12 1,652.7
Cash and cash equivalents 13 7,185.3
Bank Balances other than cash and cash equivalents 14 168.8
Loans 15 118.5
Other financial assets 16 494.0
Current tax assets 292.9
Other current assets 17 851.6
Asset held for sale 18 188.8
27,387.6
Total Assets 82,099.3
EQUITY AND LIABILITIES

EQUITY
Equity Share Capital 19 964.2
Other Equity 20 19,880.6
20,844.8
LIABILITIES
Non-current liabilities
Financial Liabilities Borrowings
21 274.7
Lease liabilities 1,902.3
Provisions 22 32,845.4
Other non-current liabilities 23 199.7
35,222.1
NOTES As at
31 December 2021
(` in million)
Current liabilities
Financial Liabilities Borrowings
24 65.9
Trade payables
Total outstanding dues of micro enterprises and small enterprises 47 2,598.1
Total outstanding dues of creditors other than micro enterprises and small 14,750.4
enterprises 415.3
Lease Liabilities
Payables for capital expenditure

Total outstanding dues of micro enterprises and small enterprises 47 210.6
Total outstanding dues of creditors other than micro enterprises and small 1,337.5
enterprises 3,586.3
Other financial liabilities 25
Provisions 26 1,385.4
Current tax liabilities -
Other current liabilities 27 1,682.9
26,032.4
Total Equity and liabilities 82,099.3
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 Coun
Membership No. - 091765 (DIN-07246738) Finance & Control and CFO (DIN- Company Secr
08662504)
17 February 2022 New Delhi 17 February 2022 Gurugram
STATEMENT OF PROFIT AND LOSS

FOR THE YEAR ENDED 31 DECEMBER 2021
NOTES Year ended Year ended 31

31 December 2021 December 2020
(` in million) (` 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
Other operating revenues 28 756.9
Revenue from operations 147,094.1
Other Income 29 1,201.1
Total Income 148,295.2
B EXPENSES
i Cost of materials consumed 30 61,541.0
ii Purchases of stock-in-trade 2,275.2
iii Changes in inventories of finished goods, work-in- 31 (627.0)
progress and stock-in-trade
iv Employee benefits expense 32 15,213.0

v Finance costs (including interest cost on employee 33 2,011.9
benefit plans)
vi Depreciation and Amortisation 4,5 3,901.9
vii Other expenses 34 32,482.0
viii Impairment loss on property, plant and equipment 4 12.2
ix Net provision for contingencies (251.7)
x Corporate social responsibility expense 39 534.0
Total Expenses 117,092.5
C PROFIT BEFORE EXCEPTIONAL ITEMS AND 31,202.7
TAX
(A-B)
Exceptional items 3,36
D 2,365.0
E PROFIT BEFORE TAX (C-D) 28,837.7
F Tax expense
Current tax 40 7,443.9 7,634.2
Deferred tax 40 (54.8) 7,389.1 (330.6)
G PROFIT AFTER TAX (E-F) 21,448.6

NOTES
Year ended
H OTHER COMPREHENSIVE INCOME
31 December 2021
(a) (i) Items that will not be reclassified to profit or loss
Re-measurement of retiral defined benefit plans 36 (` in million)
(ii) Income taxes relating to Items that will not be reclassified (2,025.3)
to profit or loss 509.7
(b) (i) Items that will be reclassified to profit or loss (1,515.6)
Changes in fair value of cash flow hedges 2.0
(ii) Income taxes relating to Items that will be reclassified (0.5)
to profit or loss 1.5
TOTAL OTHER COMPREHENSIVE INCOME (a+b) (1,514.1)
19,934.5
96,415,716
222.46
32,547.5
I TOTAL COMPREHENSIVE INCOME (G+H)
Weighted average number of equity shares outstanding
Nos. Basic and Diluted Earnings Per Share (Face value ` 10) `
ADDITIONAL INFORMATION (Refer Note 2):
PROFIT FROM OPERATIONS
[C - A(ii)+B(v)+B(x)]
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

Partner Chairman and Managing Director Executive Director - Finance & General Coun
Membership No. - 091765 (DIN-07246738) Control and CFO (DIN-08662504) Company Sec

STATEMENT OF CASH FLOWS
A CASH FLOWS FROM OPERATING ACTIVITIES
Profit Before Tax Adjustments for :
Depreciation and Amortisation
Impairment loss on property, plant and equipment
Deficit/ (Surplus) on property, plant and equipment sold/scrapped/written off (net) Other
income
Interest on bank overdraft
Interest on Investments in Insurance plan Interest on lease liabilities
Allowance for impairment on financial assets Unrealised exchange differences
Operating profit before working capital changes Adjustments for
working capital changes: Decrease/(increase) in trade receivables
Decrease/(increase) in inventories
Decrease/(increase) in loans, other financial assets & other assets Increase/(decrease) in
trade payable
Increase/(decrease) in other financial liabilities & other liabilities Increase/(decrease) in
provision for contingencies Increase/(decrease) in provision for employee benefits
Cash generated from operations
Income taxes paid (net of refunds)
Net cash generated from operating activities
B CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment Sale of property, plant and equipment
Investment in Insurance plan (Reimbursement Rights) Amount received from Insurance
plan Decrease/(increase) in loans to employees
Income from mutual funds Loans given to related parties Loans repaid by related parties
Interest received on bank deposits, investments, tax free bonds, employee loans etc.
Net cash generated from/(used in) investing activities
STATEMENT OF CASH FLOWS
A CASH FLOWS FROM OPERATING ACTIVITIES
Profit Before Tax Adjustments for :
Depreciation and Amortisation
Impairment loss on property, plant and equipment Year ended
Deficit/ (Surplus) on property, plant and equipment sold/scrapped/written off (net) Other 31 December
income 2021
Interest on bank overdraft
Interest on Investments in Insurance plan Interest on lease liabilities (` in million)
Allowance for impairment on financial assets Unrealised exchange differences 28,837.7
Operating profit before working capital changes Adjustments for 3,901.9
working capital changes: Decrease/(increase) in trade receivables 12.2
Decrease/(increase) in inventories (39.7)
Decrease/(increase) in loans, other financial assets & other assets Increase/(decrease) in (1,201.1)
trade payable 6.2
Increase/(decrease) in other financial liabilities & other liabilities Increase/(decrease) in
provision for contingencies Increase/(decrease) in provision for employee benefits (92.7)
Cash generated from operations 83.5
Income taxes paid (net of refunds) 9.6
Net cash generated from operating activities 4.5
B CASH FLOWS FROM INVESTING ACTIVITIES 31,522.1
Purchase of property, plant and equipment Sale of property, plant and equipment (13.4)
Investment in Insurance plan (Reimbursement Rights) Amount received from Insurance (1,637.4)
plan Decrease/(increase) in loans to employees (370.3)
Income from mutual funds Loans given to related parties Loans repaid by related parties
Interest received on bank deposits, investments, tax free bonds, employee loans etc. 2,223.7
Net cash generated from/(used in) investing activities 62.8
C CASH FLOWS FROM FINANCING ACTIVITIES (95.0)
Payment of deferred VAT liabilities under state government schemes Interest on bank (1,692.8)
overdraft 29,999.7
Interest on lease liabilities (7,286.0)
Prinicipal payment of lease liabilities Dividends paid
22,713.7
Net cash used in financing activities
(7,348.2)
NET INCREASE IN CASH AND CASH EQUIVALENTS (A+B+C)
40.0
(13,787.8)
266.3
13.9
-
-
-
1,245.4
(19,570.4)
(34.1)
(6.2)
(83.5)
(779.4)
(19,283.1)
(20,186.3)
(17,043.0)
Cash and cash equivalents (Refer note 13) 17,548.0

Current investments (Refer note 11) 7,229.4
Total cash and cash equivalents at the beginning of the year (as per 24,777.4
Ind AS
Cash and7)cash equivalents (Refer note 13) 7,185.3
Current investments (Refer note 11) 549.1
Total cash and cash equivalents at the end of the year (as per Ind AS 7,734.4
7)
NET INCREASE/ (DECREASE) IN CASH AND CASH EQUIVALENTS (17,043.0)
Disclosure of non-cash transactions as per Ind AS 7 :
Year ended
31 December
2021
(` in million)
340.6
199.7
2,317.6
2,857.9
Non cash Transaction from Financing Year ended Non- cash
Cash flow changes changes
activities is as under : 31 December 2020
Deferred VAT liabilities 348.4 (34.1) 26.3

Deferred Government Grants 220.9 - (21.2)
Lease liabilities 1,126.5 (862.9) 2,054.0
1,695.8 (897.0) 2,059.1
(` in million)
Non cash Transaction from Year ended 31 Non- cash Yea
December 2019 Cash flow changes changes
Financing 31 Decemb
activities is as under :
(` in million)
Deferred VAT liabilities 531.4 30.8 (213.8)
Deferred Government Grants 4.3 - 216.6
Lease liabilities 1,358.0 (686.8) 455.3
1,893.7 (656.0) 458.1
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

Partner Chairman and Managing Director Executive Director - Finance & General Coun
Membership No. - 091765 (DIN-07246738) Control and CFO (DIN-08662504) Company Secr
STATEMENT OF CHANGES IN EQUITY

(` in million)
A) EQUITY SHARE CAPITAL
Balance as at 31 December 2019 964.2
Movement during the year -
B) OTHER EQUITY (1)
Reserves and Surplus Items of Other Comprehensive

General Retained Income
Equity Instrument Effective
Reserve Earnings through Other portion of
Comprehensive Cash Flow
Income Hedges
Balance as at 31 December 2019 8,374.3 (330.0) 6.5
10,173.7
Profit after tax - 20,824.3 - -
Other comprehensive income - (925.3) -3.2
Total comprehensive income - 19,899.0 -3.2
Dividend (Refer note 48) - (18,897.5) - -
Total appropriations - (18,897.5) - -
11,175.2
Profit after tax - 21,448.6 - -
Other comprehensive income - (1,515.6) -1.5
Total comprehensive income - 19,933.0 - 1.5
Dividend (Refer note 48) - (19,283.1) - -
Total appropriations - (19,283.1) - -
11,825.1of purpose of each reserve within Other Equity has been disclosed under Note 20.
(1) Description
VIKRAM ADVANI SURESH NARAYANAN DAVID McDANIEL

Partner Chairman and Managing Director Executive Director - Finance & Control and
CFO
Membership No. - 091765 (DIN-07246738) (DIN-08662504)
17 February 2022 Gurugram 17 February 2022 Gurugram
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
1. CORPORATE INFORMATION
Nestlé India Limited (“the Company”) is a company domiciled in India, with its registered office situated at 100/101, World Trade
Barakhamba Lane, New Delhi – 110 001. The Company has been incorporated under the provisions of Indian Companies Act and
shares are listed on the BSE Limited in India. The Company is primarily involved in Food business which incorporates prod
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
Accounting Standards (Ind AS) as notified under Section 133 of the Companies Act, 2013 and the relevant provisions of the Act, a
Basis of measurement
The financial statements have been prepared on accrual and going concern basis under the historical cost convention except for
financial assets/ liabilities, share based payments and net liability for defined benefit plans that are measured at fair value
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
financial statements under the provisions of Section 2(41) of the Companies Act, 2013, which the Company Law Board has allowe
Functional and Presentation Currency
The financial statements have been prepared and presented in Indian Rupees (`), which is also the Company’s functional currenc
Rounding off
All amounts in the financial statement and accompanying notes are presented in ` million and have been rounded-off to one dec
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 an
based on the nature of products and the time between acquisition of assets for processing and their realisation in cash and cash
Measurement of Profit from Operations
For better understanding of the financial performance, the Company has chosen to present Profit from Operations as an addition
the Statement of Profit and Loss. Profit from Operations is derived from Profit before Exceptional Items & Tax less Other Incom
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 a
reported amounts of revenue, expenses, assets and liabilities. These estimates and assumptions are based on historical experienc
other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. These e
underlying assumptions are reviewed on a periodic basis. Revisions
reported amounts of revenue, expenses, assets and liabilities. These estimates and assumptions are based on historical experienc
other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. These e
underlying assumptions are reviewed on a periodic basis. Revisions

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 (R
measurement of lease liabilities and right of use assets (Refer note 5), measurement of defined benefit obligations (Refe
recognition and measurement of provisions and contingencies (Refer note 38) and recognition of deferred tax assets/liabilities (R
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
and are recorded net of returns (if any), trade discounts, rebates, other pricing allowances to trade/ consumer, when it is probab
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 custo
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 re
assurance that they will be received and the Company will comply with the conditions associated with the grant. These are recog
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
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 u
attached conditions.
INVENTORIES
Inventories are stated at cost or net realisable value, whichever is lower. However, raw materials, packing materials and other su
in the production of inventories are not written down below cost if the finished goods in which they will be included are expec
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) :
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 e
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 ca
independent actuary as at the year-end. As these liabilities are relatively long term in nature, the actuarial assumptions take
requirements of the relevant Ind AS coupled with a long-term view of the underlying
variables / trends, wherever required.
Liability for funded defined benefit pension plan (Future ready plan) has been determined based on actuarial valuation c
independent actuary for past period of services and frozen. The obligation so determined is invested in an appropriate investmen
Insurance company and is recognized as having ‘reimbursement rights’ as per Ind AS 19 Employee Benefits. This investment will e
the corresponding defined benefit liability will be increased with this interest amount. The amount recoverable from the investm
be utilized for payment of the defined benefits payable under the Future Ready plan. Also refer to Note 3 of the financial stateme
Service cost and net interest cost on the defined benefit liabilities/assets are recognized in the statement of profit and
benefit expense and finance costs respectively. Gains and losses on remeasurement of defined benefits liabilities/plan assets aris
in actuarial assumptions and experience adjustments are recognised in the other comprehensive income and are included in reta
the balance sheet.
Long term employee benefits such as compensated absences and long service awards are charged to statement of profit and loss
actuarial valuation carried out by an independent actuary as at the year-end. Actuarial gains and losses are recognised in full in th
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 undis
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 r
Nestlé S.A. shares or cash equivalent are granted to certain employees of the Company. Liability under the plan is initially measur
value and charged to statement of profit and loss over the vesting period. The Company remeasures the outstanding units at eac
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
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 an
of freight, duties, taxes or levies (net of recoverable taxes) and any directly attributable cost of bringing the assets to their workin
intended use.
Property, plant and equipment which are not ready for intended use as on the date of Balance Sheet are disclosed as “Capital wo
Profit or loss on disposal/ scrapping/ write off/ retirement from active use of an item of property, plant and equipment is recogni
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,
depreciation has been computed on useful lives based on technical evaluation of relevant class of assets including components th
lives and residual values are reviewed annually. Depreciation is provided as per the straight line method computed basis useful li
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.
depreciation has been computed on useful lives based on technical evaluation of relevant class of assets including components th
lives and residual values are reviewed annually. Depreciation is provided as per the straight line method computed basis useful li
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.

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 o
the purpose of assessing impairment, assets are grouped at the levels for which there are separately identifiable cash flows (cash
If any impairment indicator exists, estimate of the recoverable amount of the property, plant and equipment /cash generating un
asset belongs is made. An impairment loss is recognised whenever the carrying amount of an asset/ cash generating unit exceeds
amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated f
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 reco
asset/cash generating unit no longer exist or have decreased. However, the increase in carrying amount of an asset due to revers
impairment loss is recognised to the extent it does not exceed the carrying amount that would have been determined (net of dep
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 a
on ‘Financial Instruments’.
LEASES
The company’s leases mainly comprises of land, buildings, plant & machinery and vehicles. The company leases land and building
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
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 liabi
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 lea
made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subseque
cost less accumulated depreciation and impairment losses, if any. Right-of- use assets are depreciated from the commencement
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 usin
implicit in the lease or, if not readily determinable, using the incremental borrowing rates. The lease liability is subsequently reme
increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payment
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 us
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 fina
The company recognizes lease payments as operating expense on a straight line basis over the period of lease for certain short –
equal to two months) or low value arrangements.
FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are initially recorded in the functional currency i.e. Indian Rupees (`) using the exchange rate at
transaction.
Monetary items (i.e. receivables, payables, loans etc.) denominated in foreign currency are reported using the closing ex
each balance sheet date.
The exchange difference arising on the settlement or reporting of monetary items at rates different from rates at which these we
recorded / reported in previous financial statements, are recognised in the statement of profit and loss in the period in which th
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 matt
line with Ind AS 37 on Provisions, Contingent Liabilities and Contingent Assets and Ind AS 12 on Income Tax. Provisions are recogn
Company has a present obligation (legal/constructive) and on management judgement as a result of a past event, for which it is p
cash outflow will be required and a reliable estimate can be made of the amount of the obligation. As the timing of outflow of res
uncertain, being dependent upon the outcome of the future proceedings, these provisions are not discounted to their present va
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but
require an outflow of resources. When there is a possible obligation or a present obligation in respect of which likelihood of outfl
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 neve
realised.
BORROWING COSTS
Borrowing costs directly attributable to acquisition or construction of items of property, plant and equipment which take substan
time to get ready for their intended use are capitalised as part of the cost of that asset. All other borrowing costs are c
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 instr
financial assets and liabilities are measured at fair value on initial recognition. Transaction costs in relation to financial assets and
liabilities, other than those carried at fair value through profit or loss (FVTPL), are added to the fair value on initial recognition. Tr
relation to financial assets and financial liabilities which are carried at fair value through profit or loss (FVTPL), are charged to the
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
contractual cash flows that are solely payments of principal and interest are subsequently measured at amortised cost less
any. Interest income calculated using effective interest rate (EIR) method and impairment loss, if any are recognised in the statem
loss.
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
contractual cash flows that are solely payments of principal and interest are subsequently measured at amortised cost less
any. Interest income calculated using effective interest rate (EIR) method and impairment loss, if any are recognised in the statem
loss.

Fair value through other comprehensive income (FVOCI) - Financial assets that are held within a business model wh
achieved by both holding the asset in order to collect contractual cash flows that are solely payments of principal and interest an
financial assets, are subsequently measured at fair value through other comprehensive income. Changes in fair value are recogni
comprehensive income (OCI) and on derecognition, cumulative gain or loss previously recognised in OCI is reclassified to the state
and loss. Interest income calculated using EIR method and impairment loss, if any are recognised in the statement of profit and lo
Fair value through profit or loss (FVTPL) - A financial asset which is not classified in any of the above categories are sub
measured at fair valued through profit or loss. Changes in fair value and income on these assets are recognised in the statement
ii) Equity Instruments
The Company has made investment in equity instruments that are initially measured at fair value. The company has elected irrev
measure such investments at FVOCI. The Company makes such election on an instrument-by-instrument basis. Pursuant to such i
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 calculate
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 d
on initial recognition. Changes in fair value and interest expense on these liabilities are recognised in the statement of profit and
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 tra
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 asses
impairments basis expected credit losses taking into account the past history of recovery, risk of default of the counterparty, exis
conditions etc. The impairment methodology applied depends on whether there has been a significant increase in credit risk sinc
recognition.
For Trade receivables, the Company provides for expected credit losses based on a simplified approach as per Ind AS 10
Instruments. Under this approach, expected credit losses are computed basis the probability of defaults over the lifetime of the
f) Derivatives and hedge accounting
Derivative instruments used by the company include forward contracts. The Company formally establishes a hedge relationship b
forward contracts (‘hedging instrument’) and recognized financial asset/liabilities (‘hedged item’) through a formal documentatio
of the hedge. Forward contracts are designated as hedging instruments against changes in fair value of recognised assets an
value hedges) and against highly
probable forecast transactions (cash flow hedges). The effectiveness of hedge instruments is assessed at the inception and on an
Derivatives instruments such as forward contracts are initially measured at fair value. When a forward contract is design
flow hedge, the effective portion of change in the fair value of the contract is recognised in the other comprehensive income and
other equity under “effective portion of cash flow hedges”. Amount recognised in other equity is subsequently reclassified to
of profit and loss upon occurrence of the related forecasted transaction. Any ineffective portion of the change in the fair v
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 fa
reliably determinable, the company determines the fair value using valuation techniques that are appropriate in the circumstanc
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 lo
relates to items recognised in the other comprehensive income or items recognised directly in the equity. In such cases, the incom
also recognised in the other comprehensive income or directly in the equity as applicable. The current income tax charge is calcu
of the tax laws enacted or substantively enacted at the end of the reporting period. Management periodically evaluates pos
the tax returns with respect to situations in which applicable tax regulations are subject to interpretation or under dispute wit
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 (Asses
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 carr
assets and liabilities in the Balance Sheet and its corresponding tax base, that originate in one period and are capable of reversal
subsequent periods. Deferred tax assets are recognised only to the extent it is probable that future taxable profits will be availab
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 weigh
number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profi
attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted
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 d
banks where the original maturity is three months or less and other short term highly liquid investments that are readily conver
and which are subject to an insignificant risk of changes in value. Bank overdrafts are included as a component of cash an
for the purpose of Statement of Cash flows.
Cash and cash equivalents include bank balances, cheques and drafts on hand including remittances in transit, demand d
banks where the original maturity is three months or less and other short term highly liquid investments that are readily conver
and which are subject to an insignificant risk of changes in value. Bank overdrafts are included as a component of cash an
for the purpose of Statement of Cash flows.

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 Direc
February 2022, have been considered, disclosed and adjusted, wherever applicable, as per the requirements of Ind AS 10 - Event
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 Compani
enhance the disclosure requirements in financial statements. The amended schedule is applicable to the company from th
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
on the rules/interpretations are still awaited, as a consequence, the impact of the same will be assessed and accounted for post
relevant provisions. The Company has been taking cognizance of the changes and salary structures have been suitably designed t
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
Plan’ which is a combination of amended Defined Benefit Pension Scheme for past period of service and a Defined Contribution S
service. The defined benefit obligation for past period of service as per the ‘Future Ready Plan’ has been determined based on ac
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
product of an Insurance company. The accumulated investment balance shall be in future utilized to purchase pension annuities
Insurance company for the employees as per the `Future Ready Plan’. The investment so made is recognized as having ‘reimburse
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 comp
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
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
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 ST

4 - Property, Plant
GROSS CARRYING VALUE DEPRECIATION/ AMORTISATION
Cost as at Addition Deletions / Cost as at As at 31 For Impairme On As at 31

31 s Adjustments 31 December the nt deletions Decemb
December December 2020 year loss / er
2020 2021 Adjustment 2021
s
Freehold land 174.1 1.1 - 175.2 - - - - -
Buildings 9,273.6 2,132.8 39.0 11,367.4 1,947.4 416.7 - 38.1 2,326.0
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
Furniture and fixtures 693.7 17.4 59.7 651.4 661.2 21.0 - 59.2 623.0
Office equipment 202.9 50.4 22.5 230.8 138.3 30.0 - 22.4 145.9
IT equipment 892.8 167.0 85.9 973.9 592.7 165.0 - 85.7 672.0
Vehicles 24.0 1.0 - 25.0 21.0 2.5 - - 23.5
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
Cost as at Addition Deletions / Cost as at As at 31 For Impairme On As at 31

31 s adjustmen 31 December the nt deletions Decemb
December ts December 2019 year loss / er
2019 2020 adjustment 2020
s
Freehold land 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
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
Furniture and fixtures 696.2 5.1 7.6 693.7 640.0 28.7 - 7.5 661.2
Office equipment 180.8 22.8 0.7 202.9 106.8 32.2 - 0.7 138.3
IT equipment 782.7 123.6 13.5 892.8 451.2 154.9 - 13.4 592.7
Vehicles 25.5 - 1.5 24.0 18.8 3.7 - 1.5 21.0
Total 34,860.9 1,707.0 113.1 36,454.8 13,772.8 3,111.1 - 109.1 16,774.8
NOTES FORMING PART OF THE FINANCIAL ST

5 - Righ
Balance as at Addition Deletions / As at Balance as For On Deletions As at

31 December s Adjustments 31 December at the / 31
2020 2021 31 year Adjustments December
December 2021
Leasehold land 1,240.5 - - 1,240.5 66.6 13.2 - 79.8
2020
Buildings 2,129.3 1,824.8 482.3 3,471.8 1,264.5 638.5 397.3 1,505.7
Plant and Machinery - 211.1 - 211.1 - 7.0 - 7.0
Vehicles 158.1 45.7 39.9 163.9 82.7 39.5 37.7 84.5
Total 3,527.9 2,081.6 522.2 5,087.3 1,413.8 698.2 435.0 1,677.0
(`

Balance as at Addition Deletions / As at Balance as For On Deletions As at
31 December s Adjustments 31 December at the / 31
2019 2020 31 year Adjustments December
December 2020
Leasehold land 1,240.5 - - 1,240.5 53.4 13.2 - 66.6
2019
Buildings 2,371.4 435.8 677.9 2,129.3 1,335.7 539.1 610.3 1,264.5
Vehicles 179.0 12.2 33.1 158.1 75.4 40.4 33.1 82.7
Total 3,790.9 448.0 711.0 3,527.9 1,464.5 592.7 643.4 1,413.8
(1) The Company incurred ` 4.3 million (2020: ` 12.2 million) for the year ended 31 December 2021 towards expenses related t
leases, leases of low value assets & variable leases.

As at As at 31 Decemb
31 December 2021 (` in
(` in million)
6 - NON-CURRENT INVESTMENTS
At amortised cost
Quoted
Tax free Bonds 7,107.0
At fair value through Other Comprehensive Income
Unquoted
Equity shares of Sahyadri Agro and Dairy Private Limited (1) -
(Fully paid up 1,415,050 equity shares of face value `10 each)
7,107.0
Market value of quoted investments 7,797.5
(1) Classified as Asset held for sale in 2021. (Refer Note 18)
7 - NON-CURRENT LOANS
Secured, considered good

Loans to employees -
Unsecured, considered good
Security deposits 418.4
Loans to employees 72.5
490.9
490.9
8 - DEFERRED TAXES (NET) (1)

Deferred tax assets
Contingencies 1,074.8
ROU assets & lease liabilities 34.1
Employee benefits - Compensated absences and Gratuity 416.0
Allowance for credit impaired assets and Trade receivables 25.6
Other items deductible on payment 48.0
Financial Instruments 1.5
1,600.0
Deferred tax liabilities
Property, Plant and Equipment 1,341.6
Inventories -
Financial Instruments -
1,341.6
Net Deferred Tax Assets 258.4

(1) Refer note 40

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
Payments under protest with government authorities 1,045.5
14,453.4
(1) Investment has ‘Reimbursement Rights’ as defined under Ind AS 19 Employee Benefits, and is to cover the defined benefit obl
‘Future Ready Plan’. (Refer Note 3 & Note 36).
10 - INVENTORIES
(at cost or net realisable value, whichever is lower)
Raw materials 5,897.8
{Includes in transit ` 445.0 million (2020: ` 428.9 million)}
Packing materials 823.2

Work-in-progress 1,786.7
Finished goods 5,961.9

Stock-in-trade (goods purchased for resale) 384.0
Stores and spares 948.6

15,802.2 1
During the year, an amount of ` 877.3 million (net of reversals) [2020: ` 744.0 million] was charged to the statement of profit an
of obsolete, damage and slow moving inventories.
11 - CURRENT INVESTMENTS
At amortised cost
Quoted
Treasury Bills - Government Securities 549.1
Current portion of Long term tax free bonds 83.7
632.8
Considered as ‘Cash and cash equivalents’ for the purpose of ‘Statement of Cash 549.1
Flows’ in line with the requirements of Ind AS-7
Market value of quoted investments 633.9

(` in million)
12 - TRADE RECEIVABLES (UNSECURED)
Trade Receivables considered good (1)
1,652.7
Trade Receivables with significant increase in credit risk 44.6
1,697.3
Less: Loss allowance (Refer Note 41) (44.6)
1,652.7
(1) Include receivables from related parties (Refer Note 45)
13 - CASH AND CASH EQUIVALENTS
Balances with banks

on current accounts 381.9
on deposit accounts 6,796.9 17,2

Cheques, drafts on hand including remittances in transit 6.5
7,185.3
14 - BANK BALANCES OTHER THAN CASH AND CASH

EQUIVALENTS
Unpaid dividend accounts 168.8
168.8
15 - CURRENT LOANS
Secured, considered good

Loans to employees -

Security deposits 11.8
Loans to employees 106.7

118.5
Unsecured, credit impaired
Security deposits, Loans to employees 8.9 8.5

Less: Allowance for impairment (8.9) - (8.5)
118.5

(` in million)
16 - OTHER CURRENT FINANCIAL ASSETS

Recoverable from related parties (Refer Note 45) 104.7
Derivative assets - forward contracts 21.1
Interest accrued on bank deposits/ tax free long term bonds etc. 350.4
Others 17.8
494.0
17 - OTHER CURRENT ASSETS
Investment in Insurance plan (1)

351.3
Advances given to suppliers, employees etc. 160.3
Balances with government authorities 70.8

Prepaid expenses 269.2
500.3
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
(1) Investment represents ‘Reimbursement Rights’ as defined under Ind AS 19 Employee Benefits to cover the defined benefit ob
the ‘Future Ready Plan’. (Refer Note 3 & Note 36).
188.8
188.8
18 - ASSET HELD FOR SALE

At fair value through Other Comprehensive Income
Unquoted
Equity shares of Sahyadri Agro and Dairy Private Limited (1)
(2021, 2020 : Fully paid up 1,415,050 equity shares of face value `10 each) -
-
(1) During the year, the Board of Directors has given an in-principle approval for disinvestment of its entire minority stake of 19
Agro Dairy Private Limited and the process of sale has been initiated.
NOTES FORMING PART OF THE FINANCIAL

AsSTATEMENTS
at 31 December
2021
No. of shares
Amount
(` in million)
As at 31 December
As at 31 December 2020 2021
No. of shares Amount (` in million)
No. of shares
100,000,000 1,000.0 Amount
19 - EQUITY SHARE CAPITAL 96,415,716 964.2
(` in million)
Authorised
Equity shares of face value ` 10 each 100,000,0 1,000
Issued, subscribed and fully 00 .0
paid up
Equity shares of face value ` 10 each 96,415,7 964.
16 2
a) Reconciliation of number of shares and amount outstanding at the beginning and at the end of the y
Shares outstanding as at the beginning of the year 96,415,716

Shares outstanding as at the end of the 96,415,7 964. 96,415,716
year 16 2
- -
96,415,7 964.
16 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
Maggi Enterprises Limited 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 % of No. of
shares holding shares
1 Nestlé S.A. 33,051,399 34.28 33,051,399
2 Maggi Enterprises Limited 27,463,680 28.48 27,463,680
(` in million)
20 - OTHER EQUITY
General reserve 8,374.3
Retained earnings 11,825.1 1
Items of Other Comprehensive Income
Effective portion of cash flow hedges 11.2
Equity Instruments through other comprehensive income (330.0)
19,880.6 1

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 m
requirements as and when they arise. The Company had transferred a portion of the profit after tax (PAT) to general reserve purs
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 S
Companies Act, 2013 (“Act”), as amended, read with other applicable provisions of the Act and rules thereunder, which inter alia
transfer of the entire balance of ` 8,374.3 million standing to the credit of the General Reserves to Retained Earnings. The Schem
under the relevant Section(s) of the Act, is subject to the approval of the members of the Company and such other class of perso
directed by the Hon’ble National Company Law Tribunal, Delhi Bench, sanction of the Hon’ble NCLT, Delhi Bench and such other
prescribed (including clearances/approval/comments from the BSE Limited (“BSE”) and comments from the Securities and Exchan
(if any) via BSE). BSE had vide observation letter dated 16 December 2021 confirmed that there were “no adverse observation” o
of Arrangement. The Company will be filing the application for directions with the Hon’ble NCLT. Subsequent to approval of 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 fo
the Scheme of Arrangement.
(ii) Retained Earnings - Retained earnings are the accumulated profits earned by the Company till date, less transfer to ge
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 wi
currency transactions relating to firm commitments and highly probable forecast transactions. This reserve represents the cumul
fair value of forward contracts that are designated as Cash Flow Hedges. These will be reclassified to statement of profit and loss
of the underlying forecasted transactions.
(iv) Equity instruments through other comprehensive income - This represents the cumulative gains and losses ar
valuation of equity instruments measured at fair value through other comprehensive income under an irrevocable option.
(` in million)
21 - NON-CURRENT BORROWINGS
Unsecured loans
Deferred VAT liabilities State of Karnataka (1)
219.5
State of Himachal Pradesh (2)

55.2
274.7
(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.

(` in million)
22 - NON-CURRENT PROVISIONS
Employee benefits:
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
Contingencies (Refer note 38) 9,319.5
32,845.4
(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
199.7
24 - CURRENT BORROWINGS
Unsecured loans Deferred VAT liabilities State of Karnataka (1)
18.9
State of Himachal Pradesh (2)
47.0
65.9
(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 1,526.8

LIABILITIES 1,786.8
Customers' credit balances and payables -
Employee costs and reimbursements Book 168.8
Overdraft
Unpaid dividends Security deposits
(1) 81.2
Derivative liabilities - forward contracts 22.7
3,586.3
(1) No amount due and outstanding to be credited to Investor Education and Protection Fund.
(` 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
Contingencies (Refer note 38) 267.0
1,385.4
(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

Advance from customers 667.1
Others 463.9
1,682.9
28 - OTHER OPERATING REVENUES

Export incentives 443.0
Other operating income (includes scrap sales) 313.9
756.9
29 - OTHER INCOME
Interest on bank deposits, investments and employee loans etc. (1)

694.9
Interest on tax free long term bonds (1)
506.2
Dividend on mutual funds -
1,201.1
(1) as per effective interest rate method

(` in million)
30 - COST OF MATERIALS CONSUMED
Raw materials 50,395.9 4
Packing materials 11,145.1
61,541.0 5
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)
Year ended Year ended 31

(` in million)
(` in million)
32 - EMPLOYEE BENEFITS EXPENSE
Salaries, wages, bonus, pension, performance incentives etc. 13,478.7 1
Contribution to provident and other funds (Refer note - 36) 726.0
Share based payments (Refer note - 37) 252.2
Staff welfare expenses 756.1
15,213.0 1
33 - FINANCE COSTS
Interest cost on employee benefit plans 1,495.5

Interest on finance lease 83.5
Other Interest 432.9
2,011.9
34 - OTHER EXPENSES
Finished goods handling, transport and distribution Advertising and
sales promotion
Power and fuel
General licence fees (net of taxes)
Information technology and management information systems
Maintenance and repairs
Rates and taxes Travelling
Contract manufacturing charges Consumption of stores and spare
parts Training
Withholding tax on general licence fees Laboratory (quality testing)
Market research
Milk collection and district development Security charges
Exchange difference (net)
Deficit/ (Surplus) on fixed assets sold/scrapped/written off (net)
Insurance
Miscellaneous
34 - OTHER EXPENSES
Finished goods handling, transport and distribution Advertising and Year ended
sales promotion
Power and fuel 31 December 2021
General licence fees (net of taxes) (` in million)
Information technology and management information systems 6,943.5
Maintenance and repairs 7,644.0
Rates and taxes Travelling 4,080.6
Contract manufacturing charges Consumption of stores and spare
parts Training 6,545.1
Withholding tax on general licence fees Laboratory (quality testing) 1,122.6
Market research 987.4
Milk collection and district development Security charges 61.8
Exchange difference (net)
Deficit/ (Surplus) on fixed assets sold/scrapped/written off (net) 405.3
Insurance 740.6
Miscellaneous 621.7
143.3
655.0
265.6
372.6
177.7
152.6
1.8
(39.7)
94.2
1,506.3
32,482.0
35 (i). Class-wise details of Sales of

products
Product groups Year ended Year ended

31 December 2021 31 December 202
Quantity Amou
Quantity Amount (MT) (` in m
(MT) (` in million)
Milk Products and Nutrition 134,669 62,686.3 138,402

(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
(includes noodles, sauces, seasonings, pasta, cereals)
Powdered and Liquid Beverages 24,507 16,918.2 20,772
(includes instant coffee, instant tea, ready to drink beverage)
Confectionery 55,648 21,231.4 50,358
(includes bar countlines, tablets, sugar confectionery)
Sale of Products 542,483 146,337.2 490,924

(ii) Reconciliation of Revenue from sale of products with the contracted price
Year ended Yea
31-December-2021 31-Decemb
(` in million) (` in
Contracted Price 150,740.2 13
Less: Rebates, discounts, allowances etc. 4,403.0
Sale of products 146,337.2 13
36. Employee Benefit Plans

(i) The Company makes contributions to the Provident Fund, Employee State Insurance, National Pension System etc. for eligib
Under these plans, the Company is required to contribute a specified percentage of payroll costs. The Company has recognised `
(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
Employees Provident Fund Trust. The members of the Provident Fund Trust are entitled to the rate of interest declared by the Ce
under the Employees Provident Funds and Miscellaneous Provisions Act, 1952. The shortfall, if any, is made good by the Co
Trustees of Nestlé India Limited Employees Provident Fund Trust are responsible for the overall governance of the plan and to
with the provisions of the trust deed and the relevant provisions prescribed under the law. Pattern of investment followed by the
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 unaud
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 accordan
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
employment. Gratuity vesting occurs upon completion of five years of service. The Company makes contributions to the N
Employees’ Gratuity Trust Fund. The Trustees of Nestlé India Limited Employees Gratuity Trust Fund are responsible for the overa
the plan and to act in accordance with the provisions of the trust deed and the relevant provisions prescribed under the law. Patt
followed by the Gratuity Trust fund is in accordance with the rules prescribed by the Government of India. The Company aims to
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 b
plan (known as ‘Future Ready plan’). The unfunded defined benefit plan exposes the Company to risks, such as interest rate risk,
risk, longevity risk etc.
For funded defined benefit pension plan, the Company has made investments in appropriate Investment product of an Insurance
cover the obligations. The amount and timing of the defined benefits payable under the Future Ready plan match with the amou
from the Investment product. The accumulated investment balance shall be utilised to purchase pension annuities from the Insur
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
statements for description of pension plan amendment and settlement.

a) Movement in defined benefit obligations and Plan assets
31 December 2021 (` in million) 31 December 202

Gratuity Pension Pension million) Gratuit
Pension
Scheme Scheme Scheme Scheme Sch
Funded Funded Unfunded Funded Unfu
Plan Future Plan Plan P
Ready
(i) Change in defined benefit obligation (DBO): Plan(1)
Present Value of obligation, as at the beginning of the year 2,216.7 - 21,959.5 1,938.8
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
Past service cost - 1,768.2 - -
Settlement Cost - 576.9 13.9 -
Interest cost 143.3 991.7 478.9 127.1
Actuarial loss/(gain) 314.7 948.1 757.2 138.8
Actual benefits paid (185.2) (799.6) (289.6) (111.4)
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
(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
of which accounted as:
Non-current provisions 302.3 13,262.9 8,088.5 274.1
Current provisions - 351.3 394.9 -

(iii) Re-imbursement Rights - - - -
Opening Balance as at the beginning of the year Investments - 13,787.8 - -
during the year -
- 92.7 - -
Return on Investments
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

31 December 2021 (` in million) 31 December 202
Gratuity Pension Pension million) Gratuit
Pension
Scheme Scheme Scheme Scheme Sch
Funded Funded Unfunded Funded Unfu
Plan Future Plan Plan P
Ready
Unquoted Plan (1)
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
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
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
(vi) Re-measurements recognised in comprehensi

other ve
income
Actuarial loss/(gain)
Change in financial assumptions 166.6 309.3 373.0 48.0
Change in demographic assumptions (10.7) 510.2 501.8 -
Experience adjustments 158.8 128.6 (117.6) 90.8
Return on plan assets, (greater)/lesser than expected return 5.3 - - (122.8)
Net cost 320.0 948.1 757.2 16.0
(1) As mentioned in Note 3, Past service cost and Settlement cost is included as an Exceptional item. Exceptional item also includes `14.2 mill
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
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)
compensated absences and long service awards.
b) Key Actuarial Assumptions

Gratuity Pension Pension Gratuity Pe
Scheme Sch
Scheme Scheme Scheme Funded Funded Unfu
Future Unfunded Plan Ready Plan P
Plan Plan
(30 November
Discount Rates (%) 2021) 6.75
6.75 6.75 6.75
Expected rate of salary increases (%) (1)
First 5 years Beyond five years 6.2 to 13.7 7.7 to 11.3 7.7 to
Expected rate of Pension increases (%)
Discount Rates (%)
Expected rate of salary increases (%)(1)
First 5 years Beyond five years

Expected rate of Pension increases (%)
3.6 to 9.3 5.5
- 2.50 3.25 to 3.50 -3.25

31 December 2021 31-December-2
Gratuity Scheme Pension Scheme Pension
Funded Plan Future Ready Plan Scheme Gratuity
(30 November 2021) Unfunded Plan Scheme
Indian Assured Lives No allowance Indian Assured Funded Plan
Mortality (modified Lives Mortality
2006-08) Ultimate (modified 2006- rates
Mortality assumptions 08) Ultimate rates
in service Indian Individual Indian Individual Annuitant’s Indian Assured Live
Annuitant’s Mortality Table Mortality Table (2012-15) (modified 2006-
(2012-15) 08) Ultimate rates
in retirement (for pension scheme) Mortality for annu

98) Ultimate rates
mortality improvem
additional 0.25%
p.a. future mortali
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
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 o
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

Gratuity Pension Gratuity
Scheme
Scheme Scheme Funded Plan Unfund
Funded Plan Unfunded Plan
Present Value of obligation - Reported 2,627.8 8,483.4 2,216.6

Discount rates
Increase of 50 basis point 2,488.3 7,645.3 2,106.6
Decrease of 50 basis point 2,780.7 9,456.0 2,336.8
Expected rate of salary increases
Increase of 50 basis point 2,746.1 9,081.1 2,308.0
Decrease of 50 basis point 2,517.6 7,944.1 2,131.0
Expected rate of Pension increases
Increase of 50 basis point - 8,920.3 -
Decrease of 50 basis point - 8,083.5 -
Life expectancy
Increase by 1 year - 8,626.8 -
Decrease by 1 year - 8,338.4 -

Sensitivities are calculated using the same actuarial method as applied for the calculation of present value of the defined benefit
Sensitivity calculations are based on change in the respective assumption while keeping other assumptions constant.
31 December 2020
31 December 2021 (` in million) (` in million)
Gratuity Pension Gratuity Scheme
Scheme Scheme
12 years 22.7 years Funded Plan Unfunde
d) Weighted average duration of the 302.3 -
defined benefit obligation 12 years 19.8
e) Expected contribution to the Trust 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 s
are granted non-tradable units with the right to obtain Nestlé S.A. shares or cash equivalent. Restricted Stock Units (RSU)/ Perfor
(PSU) granted to employees vest, subject to certain conditions, after completion of three years. Upon vesting Nestlé S.A. determi
shares, free of charge or cash equivalent to the value of shares, is to be transferred to the employee. The Company has to pay N
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 31-Decembe
Outstanding, non-vested RSU/ PSU grants as at year end millio
407.8
RSU/ PSU grants vested during the year 237.9
Recognised in statement of profit and loss 252.2
The details on number of grants is as under:-
31-December-2021 31-Decembe
Outstanding, non-vested RSU/ PSU grants as at beginning of the year 70,919
RSU/ PSU grants granted during the year 22,335
RSU/ PSU grants vested/reversed during the year 31,524
Outstanding, non-vested RSU/ PSU grants as at year end 61,730
Weighted average share price used for valuation of grants at year end (In `) 10,427
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 re
from matters, which are under litigation / related disputes and other uncertainties requiring management judgement. The Comp
reversed/utilised contingency provision of ` 749.8 million (Previous year ` 580.2 million) due to the settlement of certain litigatio
of obligations for which provision is no longer required.

The movement of provisions is given below:
31 December 2021 (` in million) 31 December 2020 (` in millio
Description Provisions for contingencies Provisions for contingencies

Litigations and Others Total Litigations and related Others
related disputes
disputes Indirect Other
Indirect Other
Taxes Litigations Taxes 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 (544.5) (17.4) (18.3) (580
(296.0) - (453.8) (749.8) 3,835.9 4,332.2 1,262.4 9,430
during the year
3,783.8 4,766.1 1,036.6 9,586.5
Closing balance
Notes:
(i) Litigations and related disputes - represents estimates made mainly for probable claims arising out of liti
disputes pending with authorities under various statutes (i.e. Excise Duty, Service Tax, Entry tax, Income Tax, Value Added T
Purchase Tax, Goods and Service Tax etc.). This includes positions taken on matters under dispute involving judgeme
assumptions to determine the possible outcome. The probability and the timing of the outflow with regard to these matters
ultimate settlement /conclusion with the relevant authorities.
(ii) Others - includes estimates made for products sold by the Company which are covered under free replacem
crossing the best before date for consumption and other uncertainties requiring management judgement. The timing and p
outflow with regard to these matters will depend on the external environment and the consequent decision/ conclusion by
39 Corporate Social Responsibility Expense

31 December 2021 31 Decemb
Prescribed CSR expenditure as per Section 135 of the Companies Act, 2013 527.5
(a) Total amount planned to be spent during the year 529.1
(b) Actual spends during the year 534.0
(c) Paid in Cash (1)
534.0
- Pertaining to current year
- Pertaining to previous year 4.0

(d) Expenditure incurred during current year and remaining unpaid 0.0
(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

40 (a) Tax expense
Year ended Year ended
(` in million
(` in million)
i Recognised in the statement of profit and loss

Current Tax 7,443.9
Deferred Tax (54.8)
7,389.1
ii Recognised in other comprehensive income
Current Tax (504.8)
Deferred Tax (4.4)
(509.2)
Of which:
on re-measurement of retiral defined benefit plans (509.7)
on changes in fair value of cash flow hedges 0.5
Total Taxes
Current Tax 6,939.1
Deferred Tax (59.2)
6,879.9
iii Reconciliation of tax expense recognised in the statement of profit and loss with Profit before t
multiplied by the Statutory tax rate:
Year ended Yea

Profit before Tax 28,837.7 2
Statutory Income tax rate 25.17%
Tax expense @ Statutory Income tax rate 7,257.9
Tax effect of permanent adjustments made for computing
taxable income 197.0
Non-deductible expenses
Provision for contingencies 251.0
Income exempt from tax (127.4)
Adjustment of current tax for prior periods (189.4)
Tax expense recognised in the statement of profit and loss 7,389.1

(b) Movement in deferred taxes
As at 31 December 2021 (` in million)
Opening Recognise Recognis

d in ed
Particulars balance the statement in other
of profit and comprehensive
loss income
Deferred tax assets

Contingencies 1,115.9 (41.1) -
Employee benefits- compensated absences and gratuity 369.3 41.8 4.9

ROU assets & lease liabilities 44.3 (10.2) -
Allowance for credit impaired assets and Trade receivables 22.2 3.4 -
Other items deductible on payment basis 31.2 16.8 -
Financial Instruments 0.9 1.1 (0.5)
Sub-Total (A) 1,583.8 11.8 4.4
Deferred tax liabilities
Property, plant and equipment 1,384.6 (43.0) -
Sub-Total (B) 1,384.6 (43.0) -

Net Deferred Tax Assets (A-B) 199.2 54.8 4.4
As at 31 December 2020 (` in million)
Particulars Opening Recognised Recognised

Deferred tax balance in the in other
liabilities statement comprehensive
of profit income
and
loss
Property, plant and equipment 1,579.2 (194.6) -
Sub-Total (A) 1,579.2 (194.6) -
Deferred tax assets

Contingencies 1,063.0 52.9 -
Employee benefits- compensated absences and gratuity 289.2 76.1 4.0
ROU assets & lease liabilities 45.1 (0.8) -
Allowance for credit impaired assets and Trade receivables 20.0 2.2 -
Other items deductible on payment basis 25.6 5.6 -
Financial Instruments 1.9 - (1.0)
Sub-Total (B) 1,444.8 136.1 3.0
Net Deferred Tax Liabilities/(Assets) (A- 134.4 (330.6) (3.0)
B)

41. Financial Instruments
(a) Financial instruments by category
As at As at 31 Dec
31 December 2021 2020
Note (` in million) (` in
Financial assets
i Measured at Amortised Cost
Investments
Long Term Tax free Bonds 6 7,107.0
Treasury Bills - Government Securities 11 549.1
Long Term Tax free Bonds - Current portion 11 83.7
Trade receivables 12 1,652.7
Cash and cash equivalents 13 7,185.3 1
Bank Balances other than cash and cash equivalents 14 168.8
Loans 7,15 609.4
Other financial assets 16 472.9
17,828.9 3
ii Measured at Fair Value through Other
Comprehensive Income
Investment in Equity Shares 6,18 188.8
188.8
iii Measured at Fair Value through Profit & Loss
Derivative assets - forward contracts 16 21.1
21.1
Total Financial assets (i+ii+iii) 18,038.8 3
Financial Liabilities
i Measured at Amortised Cost
Borrowings 21,24 340.6
Lease liabilities 2,317.6
Trade payables 17,348.5 1
Payables for capital expenditure 1,548.1
Others financial liabilities 25 3,563.6
25,118.4 2
ii Measured at Fair Value through Profit & Loss
Derivative liabilities - forward contracts 25 22.7
22.7
Total Financial liabilities (i+ii) 25,141.1 2

(b) Fair value hierarchy
As at
31 December 2021
(` in million)
8,431.4
(i) Financial assets/liabilities at amortised cost 188.8
The carrying amount of financial assets and financial liabilities measured 21.1
at amortised cost are a reasonable approximation of their fair values 22.7
except Investments for which the fair value are as follows:
Fair value of Investments measured at amortised cost (Level 1)

(ii) Financial assets at fair value through other comprehensive
income
Investment in Equity Shares (Level 3)
(iii) Financial assets at fair value through profit & loss
Derivative assets - forward contracts (Level 2)
(iv) Financial liabilities at fair value through profit & loss
Derivative liabilities - forward contracts (Level 2)
The Company determines the fair value of its financial instruments on the basis of the following hierarchy: Level 1: The fair
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 valua
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
observable market data (unobservable inputs). Fair value of investment in unquoted equity shares is determined using disco
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. Th
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 li
settled in cash or other financial assets. The Company regularly monitors the rolling forecasts to ensure that sufficient liq
maintained on an ongoing basis to meet operational needs. The Company manages the liquidity risk by planning the in
manner such that the desired quantum of funds could be made available to meet any of the business requirements within a
period of time. In addition, the Company also maintains flexibility in arranging the funds by maintaining committed credit lin
banks to meet the obligations.

Maturities of financial liabilities:
The following table shows the maturity analysis of the Company’s financial liabilities based on contractually agreed undis
flows along with its carrying value as at the Balance Sheet date.
(` i
Undiscounted Amount
Carrying Less than Beyond
amount 1 year 1 year
Borrowings 340.6 71.2 456.1
Lease liabilities 2,317.6 577.5 2,569.6
Trade payables 17,348.5 17,348.5 -
Payables for capital expenditure 1,548.1 1,548.1 -
Others financial liabilities 3,563.6 3,563.6 -
Derivative liabilities - forward contracts 22.7 22.7 -
25,141.1 23,131.6 3,025.7
Borrowings 348.4 31.2 531.0
Lease liabilities 1,126.5 498.7 772.1
Trade payables 15,165.8 15,165.8 -
Payables for capital expenditure 2,924.3 2,924.3 -
Others financial liabilities 3,680.6 3,680.6 -
Derivative liabilities - forward contracts 7.0 7.0 -
23,252.6 22,307.6 1,303.1
(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 con
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 invest
with the Company’s established Investment policy that includes parameters of safety, liquidity and post tax returns. Com
concentration of credit risk by spreading them over several counterparties with good credit rating profile and sound fina
The Company’s exposure and credit ratings of its counterparties are monitored on an ongoing basis. Based on historical
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 t
control and approval procedures. The Company provides for expected credit losses on trade receivables based on
approach as per Ind AS 109. Under this approach, expected credit losses are computed basis the probability of defaults
of the asset. This allowance is measured taking into account credit profile of the customer, geographical spread, tra
past experience of defaults, estimates for future uncertainties etc.

Movement in expected credit loss allowance on trade receivables:
Balance as at the beginning of the year 35.4
Movement during the year 9.2
Balance as at the end of the year 44.6
Other financial assets

Other financial assets include employee loans, security deposits etc. Based on historical experience and credit profiles o
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 ca
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
market interest rates. The Company is not exposed to any significant interest rate risk as its investments are primarily in
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 pr
is exposed to the price risk mainly from investment in equity instruments. However, equity investments are not significa
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
exchange rates. The Company is exposed to foreign currency risk arising out of transactions in foreign currency. Foreign
are managed in accordance with Company’s established policy for foreign exchange management. The Company enters
contracts as per the hedging policy to hedge against its foreign currency exposures.

The foreign currency exposure of the Company as at the year end basis the closing exchange rates is as under:
(` in
As at As at
Hedged (1)
Unhedged
Hedged (1)
Unhedged
Currency
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 23
(Including Capital EUR 643.0 282.7 309.2 2,37
imports) AUD 167.1 4.0 174.6 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 co
probable forecast transactions.
Sensitivity analysis :
The impact of strengthening/weakening of foreign currencies on the outstanding exposure remaining unhedged at the y
under :
(` i
As at As at
Currency Gain on Loss on Gain on

appreciation depreciation appreciation
USD 17.4 (17.4) 12.0
EUR 14.0 (14.0) 118.6
AUD 0.2 (0.2) 2.4
5% appreciation/depreciation CHF 1.2 (1.2) 3.6
in Indian Rupees GBP 6.3 (6.3) 34.7
SGD 1.0 (1.0) 1.3
JPY 1.1 (1.1) 5.3
(d) Derivative financial instruments
Derivative instruments used by the Company include forward contracts. All the forward contracts entered into are for the p
foreign currency exposures relating to the underlying transactions and firm commitments or highly probable forecast transa

(i) Fair value of cash flow hedges Derivative assets 31 December 2021 31 December 20
Derivative liabilities (` in million) (` in million)
(ii) Notional value of cash flow hedges 48.2
(iii) Movement in respect of designated cash flow hedges is 21.1 7.0
summarised below: 22.7 2,596.8
2,840.3
Balance as at the beginning of the year 9.7

Add : Gains/ (loss) recognised in other comprehensive income (21.9)
Less: Gains/ (loss) reclassified to statement of profit and loss (23.9)
Less: Net deferred taxes on the movement 0.5
Balance as at the end of the year 11.2
42. Capital Management

The Company’s capital management objective is to ensure that a sound capital base is maintained to support long term busines
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 mo
laid down dividend distribution policy.
43. Auditors Remuneration (1)
{included under Miscellaneous expense (Refer Note-34)}

(i) Auditors’ remuneration and expenses in respect of:
a) Statutory audit
b) Audit of accounts for fiscal year and tax audit
c) Limited review of quarterly un-audited results Year ended
d) Certifications 31 December 2021
e) Other assurance services
f) Audit of employee trust accounts (` in million)
g) Out of pocket expenses for statutory audit and other matters 13.0
(ii) Cost auditors’ remuneration and expenses in respect of: 3.6
a) Cost audit fees (including out of pocket expenses) 3.0
b) Certifications 1.5
(1) excluding applicable taxes
2.4
0.0
2.0
25.5
0.2
-
0.2

44. Contingent liabilities and commitments
As at As at 31 De
31 December 2021
(` in
(` in million)
(i) Contingent liabilities
Claims against the Company not acknowledged as debts:
Indirect Taxes 11.7
(ii) Capital Commitments
Capital expenditure commitments remaining to be executed and not 1,860.9
provided for [net of advances ` 145.0 million (previous year
` 339.0 million)]
(iii) The Hon’ble Supreme court of India in February 2019 passed a judgement relating to the definition of wages under th
Act, 1952. However, there are interpretative aspects related to the judgement and the effective date from which it applies.T
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.

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 svito
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 Decem
upto 29 February 2020)
David Steven McDaniel, Executive Director - Finance & Control and CFO (w.e.f 1 March 2020) Martin Roemkens, Executive Directo
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
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 Year ended

Holding companies: 31 December 2021 December 2
(a) Dividends (` in million
(` in million)
- Nestlé S.A 6,610.3

- Maggi Enterprises Limited 5,492.7
(b) Expenses incurred
- Nestlé S.A 237.9
Fellow subsidiaries: 31 December 2021 December 2
(a) Sale of finished and other goods (` in million) (` in million
- Nestlé Enterprises SA 2,239.9

- Nestrade S.A. 1,383.1
- Nestlé Bangladesh Limited 75.7
- Others 10.5
(b) Purchase of property, plant and equipment
- Nestec York Ltd 73.4
- Nestrade S.A. -
- Others -
(c) Purchase of raw and packing materials
- Nestrade S.A. 447.6
- Sofinol S.A. -
- Others 46.6
(d) Purchase of finished goods
- Nestlé Lanka PLC 380.3
- Nestrade S.A. 267.1
- Nestlé Enterprises SA 155.2
- Nestlé Korea Ltd -
- Others 12.1
(e) General licence fees (net of taxes)
- Société des Produits Nestlé S.A. 6540.5
- CPW S.A. 4.6
(f) Expenses recovered (1)
- Nestlé Operational Services Worldwide S.A. 113.6

- Nestlé Lanka PLC 94.5
- Nestlé Bangladesh Ltd 70.4
- Nestlé R&D Centre India Private Limited 50.8
- Société des Produits Nestlé S.A 43.8
- Others 137.0
(g) Expenses incurred
- Nestlé R & D Center (Pte) Limited 41.5
- Société des Produits Nestlé S.A. -
- Nestlé Francé S.A.S. 30.1
- Nestlé Operational Services Worldwide S.A. 19.8
- Others 39.2

(h) Information technology and management information systems 31 December 2021 December 2
(` in million) (` in million
- Nestlé Australia Ltd 787.5

(i) Loans granted
- Purina Petcare India Private Ltd. -
(j) Repayment of loans granted
(k) Interest on loans granted
Entities Controlled by Key Management Personnel: 63.3
Purchase of raw and packing materials 9.5
- Piramal Glass Private Limited 286.2
- Piramal Enterprises Limited
5.9
Remuneration to Key Management personnel (2)
Executive directors 49.8

- Short term employee benefits 15.9
- Post employment benefits
- Share based payments
Non - Executive directors
- Short term employee benefits (Sitting fee & Commission)
Contribution to Employee related trusts
- Nestlé India Limited Employees’ Provident Fund Trust 300.8

- Nestlé India Limited Employees’ Gratuity Trust Fund 434.0
As at As at 30 De
31 December 2021
Balance outstanding as at the year end
Receivables from fellow subsidiaries 573.9
Payables to fellow subsidiaries 1,087.9
Payables to entities controlled by Key Managerial Personnel 3.9
Payables to Key management personnel 64.2
Payables to Employees’ Provident Fund Trust 25.3
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.

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
segment, namely Food. Accordingly, the disclosure requirements of Ind AS 108 are not applicable. The food business incorporate
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 Year ended

(` in million
(` in million)
India 139,941.5 126,
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 E
Development Act, 2006 (MSMED Act, 2006) and based on the information available with the Company, the following are
(i) Principal amount remaining unpaid

(ii) Interest due thereon remaining unpaid 31 December 2021
(iii) Interest paid by the Company in terms of Section 16 of the Micro, Small (` in million)
and Medium Enterprises Development Act, 2006, along- with the 2,808.7
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

48. Dividends
(i) Dividend paid during the year
Year ended Year ended 3

(` in million) (` in million)
Interim Dividend of ` 135.00 per share for 2021 [for 2020: ` 135.00 per share] 13,016.1 1
Final Dividend of ` 65.00 per share for 2020 [for 2019: ` 61.00 per share] 6,267.0
(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 t
the balance sheet date. The same is subject to approval by the shareholders at the ensuing Annual General Meeting of the C
therefore proposed final dividend has not been recognised as a liability as at the balance sheet date in line with Ind AS 10 o
Reporting Period’.

Partner Chairman and Managing Director Executive Director - General Coun
Membership No. - 091765 (DIN-07246738) Finance & Control and CFO (DIN- Company Secr
08662504)
ANNEXURE - 1 TO THE BOARD’S REPORT
REPORT ON CORPORATE GOVERNANCE FOR THE YEAR ENDED 31 DECEMB ST
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
Governance by adhering to practices of the Nestlé Group. The significant documents from Nestlé Group, which define th
behaviour of the Company, are “The Nestlé Corporate Business Principles”, “The Nestlé Management and Leadership Principles”
India Code of Business Conduct”.
The Company’s business objective and that of its management and employees is to manufacture and market the Compa
such a way as to create value that can be sustained over the long term for consumers, shareholders, employees, business partne
national economy. The Company is conscious of the fact that the success of a corporation is a reflection of the professio
and ethical values of its management and employees. In addition to compliance with regulatory requirements, the Company end
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 A
Meeting, number of other Board of Directors or Committees in which a Director is a member or chairpers
the other listed companies, where such director is a Director and Category of Directorship
Above information as on 31 December 2021or for the year 2021, as applicable, is tabulated hereunder:
st
Director - Category DIN No. of Attendance No. of No. of Membership/ Category of Directorship and n
Board at the last AGM on outside Chairpersonship in other Board the other Listed Comp
Meetings 07 May 2021
th
Directorship on
attended #
held A
Committees 31 December 2021 Member
B st
Executive Chairperson
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 Limited C
- Cummins India Limited

- VST Industries Limited
- Sun Pharmaceutical Industries Limited

- Apollo Hospitals Enterprise Limited
1 3 Executive Director
Mr. Rajya Vardhan Kanoria 00003792 6 Yes 7

- Kanoria Chemicals and Industries Limit
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.
A Directorship in Companies registered under the Companies Act, 2013 or any earlier enactments, excluding Companies
Key Skill Skills/ Expertise/ Competencies Suresh David Matthias Roopa Rama Rajya
Area Narayanan Steven Christoph Kudva Bijapurkar Vardhan
McDaniel Lohner Kanoria
Business & Consumer insight & marketing Y Y Y
Strategy Technical & R&D (including nutrition & food Y
science)
Economic issues/ Macro Economic Trends/ Y Y Y Y Y
Interpreting national policies
E-commerce, digital & new technologies and M&A Y Y Y Y Y
Operations Sales & Customer Management Y Y Y Y

Operation Management & Risk Mitigation Y Y Y Y
Finance Treasury and Audit Y Y Y
Information technology Y
Sustainability (water, sanitation, community Y Y Y Y Y
development, nutrition) under Creating Shared
Value/ CSR
Environmen Scientific & Regulatory Affairs Y

t Media, local interaction and environment Y Y Y Y Y
assessment
Climate change Y Y
Other Innovation Management Y

enablers Human Resource & Talent Y Y Y Y Y Y
Communications Y Y Y Y Y Y
Board Governance and General Management Y Y Y Y Y Y
Compliance with the Code of ConductThe Company has adopted the ‘The Nestlé India Code of Business Conduct’ (“the Code”). T

discussion and analysis of financial condition and result of operations, statement of significant related party transactions and suc
prescribed.
As on 31 December 2021, the Audit Committee comprised of Mr. P. R. Ramesh as Chairman, Mr. Rajya Vardhan Kanoria and Ms.
st
Members, all Independent Non-Executive Directors. All members of the Audit Committee are financially literate and have
management expertise by virtue of their comparable experience and background. The Company Secretary acts as the Secretary t
Committee. The Executive Director – Finance & Control and CFO, Head of Financial Accounting, and Deputy Company Secretary a
invitees to the meetings of the Audit Committee. The Chief Internal Auditor, the concerned partners/ authorized representatives
Auditors and Cost Auditors are invited to the meetings of the Audit Committee. The Secretarial Auditors are invited to the meetin
Committee to present the Secretarial Audit Report and their findings.
During the year, the Audit Committee met six times on 16 February 2021, 20 April 2021, 28 July 2021, 24 September 2021, 19
th th th th th
and 10 November 2021 and all members of the Audit Committee participated in the aforesaid meetings through video co
th
audio-visual means except the meeting held on 28 July 2021 for which Ms. Roopa Kudva was granted leave of absence. The m
th
between any two meetings was less than one hundred and twenty days. On 16 February 2021 the Audit Committee had a
th
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 contemp
Section 178 of the Act and Regulation 19 of the Listing Regulations, besides other terms as referred by the Board. The
formulation of criteria for determining qualifications, positive attributes and independence of a director and recommendi
Directors a policy relating to the nomination and remuneration for the directors, key managerial personnel and other employees
criteria for evaluation of Independent Directors and the Board; devising a policy on diversity of Board of Directors; and identificati
who are qualified to become directors and who may be appointed in senior management in accordance with the criteria laid dow
recommending to the Board of Directors their appointment, removal and noting their cessation; recommendation on extension o
the terms of appointment of the Independent Directors; and recommendation to the Board of Directors of all remuneration, in w
payable to senior management.
As on 31 December 2021, the Nomination and Remuneration Committee comprised of Mr. Rajya Vardhan Kanoria as Chairman, M
st
and Ms. Roopa Kudva as Members, all Independent Non-Executive Directors. The Company Secretary acts as the Secretary to the
Remuneration Committee. The Chairman and Managing Director, Head of Human Resources and Deputy Company Secretary are
invitees to the meetings of the Nomination and Remuneration Committee.
During the year, the Nomination and Remuneration Committee met four times on 16 February 2021, 19 April 2021, 27 July 202
th th th
2021 and all members of the Committee participated in the aforesaid meetings through video conferencing/ other audio-visual m
meeting held on 27 July 2021 for which Ms. Roopa Kudva was granted leave of absence.
th
Performance Evaluation
In terms of the requirement of the Act and the Listing Regulations, an annual performance evaluation of the Board, its Committee
Directors was undertaken which included the evaluation of the Board as a whole, Board Committees and peer evaluation of the D
criteria for performance evaluation cover the areas relevant to the functioning of the Board and Board Committees such as its co
operations, Board as whole and group dynamics, oversight and effectiveness, performance, skills and structure etc. The performa
directors was evaluated on the parameters such as preparation, participation, flow of information, conduct, independent judgem
effectiveness. The performance evaluation of Independent Directors was done by the entire Board of Directors and in the evalua
Directors, the Directors being evaluated had not participated. A reputed HR Consultant Firm compiled and provided analysis of th
annual performance evaluation. As an outcome of the evaluation, it was noted that board as a whole has a composition that is di
experience, skills, expertise, competence, gender balance, and fosters lively, free expression and constructive debates. The discus
robust, well intended and leads to clear direction and decision. The presentations by the Senior Management and their teams pro
at a deeper level and exposure to segments. It was also noted that the Board Committees functions professionally and smoothly
Board Committee’s terms of reference as mandated by law, important issues are bought up and discussed in the respective Board
Board of Directors also noted that implementation of the Board Portal helped in better flow of information and evaluate the prop
at the Board/ Committee meetings more effectively. The Board of Directors provided their inputs, inter-alia, on the on-boardin
directors, time allocation for the meetings and bringing in broad perspective
on the global developments, strategies and priorities.
Remuneration of Directors fo
Name of the Director Sitting Fee Salaries and Perquisites Company’s Commission
Total
Allowances Contribution Performance Linked to PF Incentive
Mr. Suresh Narayanan 1
N.A. 92.41 59.08 3.37 33.21
Mr. David Steven McDaniel 1
N.A. 53.66 14.33 1.35 11.35
Mr. Matthias Christoph Lohner 1
N.A. 44.53 17.69 1.15 9.66
Ms. Rama Bijapurkar 0.83 - - - 2.00 @
Mr. Rajya Vardhan Kanoria 1.50 - - - 2.00 @
Ms. Roopa Kudva 1.30 - - - 2.00 @
Mr. P. R. Ramesh 1.60 - - - 2.00 @
Dr. Swati A. Piramal 0.65 - - - 2.00 @
1 The Company enters into service contracts with all Executive Directors for a period of 5 years. The notice period is of three mo

STAKEHOLDERS RELATIONSHIP COMMITTEE
The Stakeholders Relationship Committee oversees, inter-alia, redressal of shareholder and investor grievances, transmi
transposition of shares, non-receipt of annual report or declared dividend, issue of duplicate shares, exchange of new d
certificates, reviewing dematerialisation of shares and related matters. The roles and responsibilities of the Stakeholders Relation
are as prescribed under Section 178 of the Companies Act, 2013 and Regulation 20 of the Listing Regulations.
As on 31 December 2021, the Stakeholders Relationship Committee comprised of Ms. Rama Bijapurkar, Independent Non
st
Director as Chairperson, Mr. Rajya Vardhan Kanoria, Independent Non-Executive Director and Mr. David Steven McDaniel, Executi
Finance & Control and CFO as Members. The Company Secretary acts as the Compliance Officer and the Deputy Company Secreta
invitee to the meetings of the Stakeholders Relationship Committee.
During the year, the Stakeholders Relationship Committee met four times on 16 February 2021, 19 April 2021, 27 July 2021 and
th th th
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 s
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 Regulation
monitoring and reviewing of risk management plan and reporting the same to the Board of Directors periodically as it may deem
any other terms as may be referred by the Board of Directors, from time to time. The Risk Management Committee has, inter-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 t
Management Committee with effect from 20 April 2021. Mr. Matthias Christoph Lohner, Executive Director- Technical, ce
th
member of the Risk Management Committee on 20 April 2021. As on 31 December 2021, the Risk Management Commi
th st
of Mr. Suresh Narayanan (Chairman), Mr. P. R. Ramesh, Ms. Roopa Kudva and Mr. David Steven McDaniel, as Members. Th
Secretary acts as the Secretary to the Risk Management Committee and the Executive Director-Technical and Deputy Company Se
permanent invitees to the meetings of the Risk Management Committee.
During the year, the Risk Management Committee met four times on 15 March 2021, 27 July 2021, 24 September 2021 and 18
th th th th
the members of the Risk Management Committee participated in the aforesaid meetings through video conferencing/ other aud
except Ms. Roopa Kudva who was granted leave of absence for the meeting held on 27 July 2021. th
CORPORATE SOCIAL RESPONSIBILITY COMMITTEE

The Corporate Social Responsibility Committee oversees, inter-alia, corporate social responsibility and other related ma
referred by the Board of Directors and discharges the roles as prescribed under Section 135 of the Act read with Comp
Social Responsibility Policy) Rules, 2014, as amended, (“CSR Rules”), which includes formulating and recommending to the
Directors, a Corporate Social Responsibility (CSR) Policy indicating the activities to be undertaken by the Company, as per Schedu
the amount of expenditure to be incurred; and monitoring the CSR Policy of the Company. The CSR Committee has formulated an
Plan pursuant to the CSR Rules and the CSR Policy of the Company, as amended from time to time.
As on 31 December 2021, the Corporate Social Responsibility Committee comprised of Dr. Swati A. Piramal Independent Non- Ex
st
as 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, as Members.
Secretary acts as the Secretary to the Corporate Social Responsibility Committee. The Deputy Company Secretary is permanent in
meetings of the Corporate Social Responsibility Committee.
During the year, the CSR Committee met thrice on 16 February 2021, 27 July 2021 and 18 October 2021. All the mem
th th th
these meetings except for Ms. Rama Bijapurkar, who was granted leave of absence for the meeting held on 27 July 2021 and Dr.
th
who was granted leave of absence for the meetings held on 16 February 2021 and 18 October 2021. Mr. Suresh Narayanan acte
th th
for these meetings in place of Dr. Swati A. Piramal. All the CSR Committee Meetings were held through video conferencing/ other
means.
GENERAL BODY MEETINGS
Required details of last three Annual General Meetings (AGMs), are as below:
AGM Date & Time Venue Special Resolution(s)

62nd 7 May 2021
th
Through Video Conferencing /
At 10:00 A.M. Other Audio-Visual Means
(IST) (Deemed venue of the meeting:
100/ 101, World Trade Centre, No Special Resolution was passed in this meeting.
Barakhamba Lane, New Delhi-
110001)
61st 19 June 2020

th
Through Video Conferencing /
At 10:00 A.M. Other Audio-Visual Means
(IST) (Deemed venue of the meeting:
100/ 101, World Trade Centre, No Special Resolution was passed in this meeting.
Barakhamba Lane, New Delhi-
110001)
60th 25 April 2019

th
Air Force Auditorium, Subroto Re-appointment of Mr. Rajya Vardhan Kanoria as an Independen
At 10:00 A.M. Park, New Delhi-110010 Executive Director for second term of five consecutive years
(IST) w.e.f. 13 May 2019 to 12 May 2024
th th
During the year, no special resolution was passed through postal ballot. There is no special resolution proposed to be conducted thr

GENERAL SHAREHOLDER INFORMATION
Annual General Meeting@
Day, Date and Time : Wednesday, 30 March 2022 at 10:00 A.M. (IST)
th
Venue : Annual General Meeting through Video Conferencing/ Other Audio-Visual Means (VC/
[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/
July 2022 Third Quarter Results : Third/ Fourth week of October 2022
Annual Results : Second/ Third week of February 2023
Financial Year : 1 January to 31 December
st st
Record Date : 8 April 2022

th
Dividend payments@: Final Dividend of ` 65/- per equity share has been recommended by the Board of Directors and subje
of the shareholders at the ensuing 63 Annual General Meeting is proposed to be paid on and from 26 April 2022 (payment date)
rd th
The interim dividends for the year 2021 of ` 25/- per equity share and ` 110/- per equity share of `10/- each, were paid on and f
and 16 November 2021, respectively.
th
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
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 (`)
January 18,621.05 16,961.20 July 18,446.55
February 17,634.60 15,900.00 August 20,333.80
March 17,261.45 16,075.15 September 20,599.95
April 17,863.85 16,271.45 October 20,200.00
May 17,894.00 16,267.05 November 19,588.75
June 18,175.00 17,334.35 December 19,795.00
[Source: www.bseindia.com]The Company had paid Annual Listing Fees for the Financial Year 2021-2022.
Performance in comparison to BSE Sensex(Closing value of Nestlé share price vs BSE Sensex on the last trading day of the month
Category of Shareholder Number of Shares Percentage o

Promoter and Promoter Group (A) 60,515,079 S
Public Shareholding 35,900,637
Mutual Funds 3,643,136
Alternate Investment Fund 133,073
Foreign Portfolio Investor 11,906,396
Financial Institutions/ Banks 61,669
Insurance Companies 3,769,797
Central/ State Government(s) 1,600
Individuals 12,834,894
NBFCs 6,817
Any Other
- Bodies Corporate 1,900,988
- Overseas Corporate Body 500

- NRIs 802,394
- Trust 493,172
- IEPF Authority 100,458
- HUF 221,260
- Clearing Members 24,483
Total Public Shareholding (B) 35,900,637
Total Shareholding (A + B) 96,415,716 1
Distribution of shareholding as on 31 December 2021

st
Number of Shares Number of Shareholders Number of Shares Percentage o

1 to 500 182,110 4,562,733 S
501 to 1,000 2,314 1,669,293
1,001 to 2,000 1,014 1,435,121
2,001 to 3,000 363 905,835
3,001 to 4,000 189 660,579
4,001 to 5,000 123 557,807
5,001 to 10,000 256 1,850,773
10,001 and above 393 84,773,575
Total 186,762 96,415,716 1
Dematerialisation of shares99.40% equity shares of the Company are in dematerialised form as on 31st December 2021.Outstandin
The Company has an adequate system of internal controls to ensure that transactions are properly authorised, recorded, a
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 A
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 manda
be made.
As per the requirement of the Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressal) Act, 2013 (“POSH”)
policy and robust mechanism in place to redress complaints reported under it. The Company has complied with provisions relating to the c
Internal Complaints Committee under POSH. The Internal Committee is composed of internal members and an external member who has
experience in the field. In 2021, one case of sexual harassment was reported in the Company, which has been investigated and resolved as
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 46 of the Listing Regulations.
The Corporate Governance Report of the Company for the year 2021 or as on 31 December 2021 are in compliance with all applicable req
st
Listing Regulations.
The status of adoption of the non-mandatory requirements as specified in sub – regulation 1 of Regulation 27 of the Listing Reg
follows:
(a) The Board: The Company has an Executive Chairman; (b) Shareholder Rights: Half-yearly and other quarterly financial results
newspapers and uploaded on the website of the Company at www.nestle.in; (c) Modified opinion(s) in audit report: The Co
has a regime of un-qualified financial statements. Auditors have raised no qualification on the financial statements; (d) Reportin
Auditor: The Chief Internal Auditor of the Company administratively reports to the Executive Director - Finance & Control and CFO with f
independence and has direct access to the Audit Committee.
On behalf of the Board of Directors
Date : 17 February 2022
th
Suresh Narayanan
Place : Gurugram Chairman and Managing Director
@ For administrative reasons, the Company postponed the 63 AGM; the Record Date and Payment Date for Final Dividend. Accordingly
rd
information has been updated in the “GENERAL SHAREHOLDER INFORMATION” section of the Corporate Governance Report fo
31 December 2021:
st
Annual General Meeting

Day, Date and Time : Tuesday, 12 April 2022 at 10:00 A.M. (IST)
th
Venue : Annual General Meeting through Video Conferencing/ Other Audio-Visual Means (VC/ OAVM fa
[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 w
Third Quarter Results : Third/ Fourth week of October 2022
Annual Results : Second/ Third week of February 2023
Financial Year : 1 January to 31 December
st st
Record Date : 22 April 2022nd
Dividend payments: Final Dividend of ` 65/- per equity share has been recommended by the Board of Directors and subject to the ap
shareholders at the ensuing 63 Annual General Meeting is proposed to be paid on and from 6 May 2022 (payment date).
rd th

Date : 4 March 2022
th
Suresh Narayanan
CERTIFICATE OF NON-DISQUALIFICATION OF
DIRECTORS Annex
[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 havin
office at 100/101, World Trade Centre, Barakhamba Lane, New Delhi -110001, to the Board of Directors of the Company (‘the Board’) for
Year ended 31 December 2021 and Financial Year ending 31 December 2022 and relevant registers, records, forms and returns maint
st st
Company and as made available to us for the purpose of issuing this Certificate in accordance with Regulation 34(3) read with Schedule V P
of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. We have considered non-disqualification to include non-deba
Regulatory/ Statutory Authorities.
It is the responsibility of Directors to submit relevant documents with complete and accurate information in accordance with the provision
Due to the pandemic caused by COVID – 19 and prevailing lockdowns/ restrictions on movement of people imposed by the Gov
purpose of issuing this certification, we have conducted our audit remotely based on the records and information made available
Company electronically.
Ensuring the eligibility for the appointment/ continuity of every Director on the Board is the responsibility of the management of the Comp
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 Directo
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 t
provided by the Company, its officers and authorized representatives, we hereby certify that none of the Directors on the Board of th
listed hereunder for the Financial Year ended 31 December 2021, have been debarred or disqualified from being appointed or continuing
st
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 Date of Appointment Date of Cessat
01 Dr. Swati Ajay Piramal (DIN) 00067125 02-August-2010
02 Mr. Rajya Vardhan Kanoria 00003792 13-May-2014
03 Mr. Suresh Narayanan 07246738 01-August-2015
04 Ms. Rama Bijapurkar 00001835 01-May-2017
05 Ms. Roopa Kudva 00001766 01-January-2019
06 Mr. David Steven McDaniel 08662504 01-March-2020
07 Mr. Prathivadibhayankara 01915274 01-July-2020
Rajagopalan Ramesh
08 Mr. Matthias Christoph Lohner 08934420 01-November-2020

This certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the ma
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
December 2021.
For S. N. ANANTHASUBRAMANIAN & Co.
Company Secretaries
ICSI Unique Code P1991MH040400
Peer Review Cert. No.: 606/2019
S. N. Ananthasubramanian
th
Partner
Place : Thane FCS : 4206
COP No. : 1774
ICSI UDIN : F004206C002575489
Independent Auditors’ Certificate on Compliance with the Corporate Governance requirements under SEB
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 2 August 2018 and addendum to the engagement
nd
January 2020.
2. We, B S R & Co. LLP, the Statutory Auditors of Nestlé India Limited have examined the compliance of conditions of Corporate
Nestlé India Limited (“the Company”) for the year ended 31 December 2021 as stipulated in Regulations 17-27, clause (b) to (i) o
st
and paragraphs C, D and E of Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Require
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 responsibilit
Company’s Management including the preparation and maintenance of all the relevant records and documents. This resp
the design, implementation and maintenance of internal control and procedures to ensure the compliance with the conditions of
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 complia
conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Com
5. Pursuant to the requirements of the Listing Regulations, it is our responsibility to provide a reasonable assurance whether th
complied with the conditions of Corporate Governance as stipulated in Listing Regulations for the year ended 31 December 2021
st
6. We conducted our examination of the above corporate governance compliance by the Company in accordance with
Note on Reports or Certificates for Special Purposes (Revised 2016) and Guidance Note on Certification of Corporate Gov
issued by the Institute of the Chartered Accountants of India (the “ICAI”), in so far as applicable for the purpose of this certificate
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
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
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
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 t
requirement of the Listing Regulations and should not be used by any other person or for any other purpose. Accordingly, we do
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 wh
come without our prior consent in writing.
For B S R & Co. LLP
Firm Registration No.: 101248W/W-100022
Vikram Advani
Place : Gurugram Partner
th
Membership No.: 091765
UDIN: 22091765ACXLHY3102
come without our prior consent in writing.
For B S R & Co. LLP
Firm Registration No.: 101248W/W-100022
Vikram Advani
Place : Gurugram Partner
th
Membership No.: 091765
UDIN: 22091765ACXLHY3102

ANNEXURE - 2 TO THE BOARD’S REPORTANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY ACTIVITIE
Sl. No. Name of Director Designation/ Number of meetings Number of

Nature of Directorship of CSR Committee meetings of C
held during the year Committee
attended dur
1 Dr. Swati Ajay Piramal Chairperson (Independent Director) 3 the year 1
2 Mr. Suresh Narayanan Member (Chairman & Managing 3 3

Director)
3 Ms. Rama Bijapurkar Member (Independent Director) 3 2
4 Mr. David Steven McDaniel Member (Executive Director – 3 3
Finance & Control and CFO)
3. Provide the web-link where Composition of CSR committee, CSR Policy and CSR projects approved b
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 outcome
significant impact on society. The projects include nutrition, health and breastfeeding awareness programmes; plastic wast
awareness; providing access to clean drinking water and sanitation; enhancing the livelihood of street food vendors and the initia
adoption for integrated and holistic development. Building on these efforts, your Company joined hands with credible NGOs, imp
partners and authorities engaged in providing relief efforts in the communities impacted by COVID-19 pandemic across various st
Recognizing the need for oxygen support for COVID-19 patients, Your Company set up oxygen plants near five of its facto
(Moga), Himachal Pradesh (Tahliwal), Uttarakhand (Pantnagar), Gujarat (Sanand) and Karnataka (Nanjangud).
The web-links are as follows:• Composition of CSR Committee: https://www.nestle.in/investors/directorsandofficers• CSR
Sl. No. Financial Year Amount available for set-off from Amount required to be set- off for the
preceding financial years (in ` financial year, if any (in ` Million)
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: N
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 Amount Unspent (in ` Million)

Spent for the
Financial Year
(in ` Million) Total Amount transferred to Amount transferred to any fund specified unde
Unspent Schedule VII as per second proviso to section
CSR Account as per section 135(6) 135(5)
Amount Date of transfer Name of the Amount Date of tra

Fund
534 Not applicable
b) Details of CSR amount spent against ongoing projects for the financial year:
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
Sl. Name of Item Local Location of the project Project Amount Amount Amount Mode of
No. the from the area duration allocate spent transferre Implem
Project list of (Yes d for in the d to e
activities / No) the current Unspent ntation
in project financia CSR - Direct
Schedule (in ` l Year Account (Yes/
VII to Million) (in ` for the No)
the Act Million) project as
per
Section
State District 135(6) (in
` Million)
1. Project i Yes Delhi, Rajasthan, West Delhi, Duration: 42.8 42.8 NA No

1a) Jagriti Uttar Pradesh, Lucknow, Banda, 01/02/2019
Maharashtra, Kaushambi, to 31/01/2022
Himachal Pradesh Varanasi,
Allahabad, Sri
Ganganagar,
Churu, Nagpur,
Mandi, Chamba
1b) Odisha Balangir, Duration: 13.1 13.1

Nuapada 01/02/2020
to 31/01/2022
2. Nestlé i Yes Bihar, Gujarat Patna, Duration: 13.7 13.7 NA No

2a) Healthy Kids Ahmedabad 01/04/2021
Programme to 31/03/2022
2b) Punjab, Himachal Ludhiana Kangra Duration 2021 1.0 1.0 NA No

Pradesh, Gujarat, Ahmedabad to
Karnataka Mysuru 2022
3 Clean i Yes Haryana; Tamil Panipat, Sonipat, Duration: 8.5 8.5 NA No

Drinking Nadu; Punjab; Karnal, Jind, 2019,
Water Rajasthan; Gurgaon, Nilgiris, 2020,
Maharashtra; Barnala, Moga, 2021, 2022
Karnataka; West Ferozepur, for various
Bengal Ludhiana, locations
Faridkot, Tarn
Taran, Jaipur,
Chittorgarh, Pali,
Dholpur, Nagaur,
Alwar, Karauli,
Bikaner, Barmer,
Ajmer,
Thane, Palghar,
Mysuru, Kolkata
4 Employee i, iv Yes Delhi, Haryana Delhi, Gurgaon, Duration: 0.4 0.4 NA Yes
Volunteering Maharashtra, West Mumbai, 15/06/2021
Programme Bengal, Tamil Nadu Kolkata, Chennai to 14/05/2022
5. Hilldaari iv Yes Uttarakhand Dehradun Duration: 6.7 6.7 NA No

5a) 15/11/2019
to 31/03/2022
5b) Uttarakhand Nainital Duration: 8.1 8.1

11/11/2019
to 10/11/2022
5c) Himachal Pradesh Chamba Duration: 3.4 3.4

01/04/2021
to 14/01/2022
5d) Goa South Goa Duration: 9.7 9.7

01/07/2020
to 30/06/2023
5e) Maharashtra Satara Duration: 8.9 8.9

11/11/2020
to 10/11/2023
5f) Kerala Idukki Duration: 7.9 7.9

25/01/2021
to 24/01/2022
6 Project Serve ii No Bihar Gaya Duration: 0.2 0.2 NA No

Safe Food 1/10/2021
to 31/12/2022
7. Project x No Haryana Nuh 01/04/2019 0.7 0.7 NA No

7a) Vriddhi to 31/03/2022
7b) 01/06/2021 3.0 3.0

to 31/05/2024
Total 128.1 128.1
c) Details of CSR amount spent against other than ongoing projects for the financial year:
(1) (2) (3) (4) (5) (6) (7) (8)
Sl. Name of Item from Local Location of the project Amount Mode of Mode of impleme
No. the the list of area spent for implementati – Through implem
Project activities (Yes State District the project on agency
Name
in / No) (in ` -Direct
schedule Million) (Yes/No)
VII to the
Act
1. Nestlé i Yes Bihar, Gujarat Patna, Ahmedabad 6.7 No Magic Bus
1a) Healthy Kids India
Programme Foundation
Healthy Kids India
Programme Foundation
1b) Andhra Pradesh, East Delhi, South Delhi, North 98.4

Assam, Chhattisgarh, Delhi, Jaipur, Dholpur, Ajmer,
Delhi, Gujarat, Karnal, Rohtak, Ludhiana, Lucknow,
Haryana, Jammu & Jammu, Leh, Mysore, Raichur,
Kashmir, Vishakapatnam, Rajahmudry,
Jharkhand, Ladakh, Hyderabad, Ramanathpuram,
Karnataka, Kerala, Chennai, Wayanad, Kochi, Kolkata,
Madhya Pradesh, Guwahati, Mamit, Raipur,
Maharashtra, Odisha, Keonjhar, Ranchi, Mumbai, Pune,
Punjab, Rajasthan, Gadchiroli, Vidisha, Khandwa,
Tamil Nadu, Telangana, Bharuch
Uttar Pradesh, West
Bengal, Mizoram
2 Clean i Yes Punjab, Himachal Moga, Taran Taran, Faridkot, 18.8 Yes
Drinking Pradesh, Goa, Barnala, Firozpur, Ludhiana,
Water Karnataka Bhatinda, Amritsar, Una, North Goa
and South Goa, Mysuru
3 Sanitation i Yes Punjab, Haryana, Moga, Barnala, Faridkot, Ferozpur, 38.7 Yes
Uttarakhand, Himachal Panipat, Udham Singh Nagar, Una,
Pradesh, Karnataka, Mysuru, Wayanad, Ajmer, Barmer,
Kerala, Rajasthan, Jhalawar, Jaisalmer, Palghar and
Maharashtra, Goa, Kolhapur, South Goa and North
Tamil Nadu, Telangana, Goa, Nilgiris, Salem, Siddipet,
Odisha Sangareddy, Ranga Reddy, Khorda
4 Park iv Yes Punjab, Himachal Moga, Una 1.0 Yes

Maintenance Pradesh
5 Project Serve ii No Tamil Nadu, Uttar Kancheepuram, Chengalpet, Salem, 6.9 No Nidan
Safe Food Pradesh Lucknow, Varanasi
6 Disaster i and xii Yes Assam, Bihar, Hyderabad, Nellore, Vijayawada, 208.7 Yes Akshaya Patra
management Chandigarh, Delhi, Tirupati, Vishakapatnam, Itanagar, Charities Aid
and Covid-19 Gujarat, Jharkhand, Jorhat, Sivasagar, Tinsukia, Foundation
Relief Efforts Himachal Pradesh, Dibrugarh, Nagaon, Cachar, BOSCONET
Karnataka, Kamrup, Kamrup Metropolitan, NIDAN
Madhya Pradesh, Kokrajhar, West Karbi Anglong, INDIAN
Maharashtra, Odisha, Jamui, Patna, Muzaffarpur, Gaya, JAYCEES
Punjab, Rajasthan, Bhagalpur, Vaishali, Durg, North CHARITABLE
Tamil Nadu, Uttar Delhi, East Delhi, West Delhi, TRUST
Pradesh, Uttarakhand North East Delhi, North Goa, Save the
Ahmedabad, Surat, Bhavnagar, Children India
Bhuj, Baroda, Panipat, Solan, Una, Indian
Dhanbad, Ranchi, Hazaribagh, Association for
Bokaro, Dumka, Singhbhum, the Blind
Tumkur, Devanahalli, Bangalore, Cheshire
Bidar, Gulbarga, Yadagiri, Gadag, Disability Trust
Bellary, Mandya, Thrissur, Stree Mukti
Ernakulam, Thiruvananthapuram, Sanghatana
Idduki, Mumbai, Thane, Kolhapur, CREDIT I
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
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
Sl. No. Particular Amount (in `

(i) Two percent of average net profit of the company as per section 135(5) Million)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 Nil
years, if any
(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 Amount Amount Amount transferred to any fund specified
Financial transferred to spent in the under Schedule VII as per section
Year. Unspent CSR reporting 135(6), if any.
Account Financial Name of Amount Date of
under section Year (in ` the Fund (in ` Million). transfer.
135 (6) (in ` Million).
Million) Not Applicable
(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial
(1) (2) (3) (4) (5) (6) (7) (8)

Sl. Project ID. Name of Financial Project Total amount Amount spent Cumulative amount
No the Project. Year in duration. allocated for on the project spent at the end of
which the the project (in in the reporting Financial
project was ` Million). reporting Year. (in ` Million)
commenced. Financial Year
(in ` Million).
1a) CSR/2019/JAG/01 2019 01/02/2019 166.9 87.5 154.1

to
31/01/2022
Project Jagriti
1b) CSR/2020/JAG/01 2020 01/02/2020 33.3 20.1 28.9
to
31/01/2022
2) CSR/2019/CDW/01 Clean Drinking 2019 2019 to 2022 59.7 15.3 42.8

Water
3a) CSR/2019/HIL/01 2019 15/11/2019 18.0 10.9 17.0

to
31/03/2022
3b) CSR/2019/HIL/02 2019 11/11/2019 29.9 12.8 21.0

to 10/11/2022
Hilldaari
3c) CSR/2020/HIL/01 2020 01/07/2020 33.1 14.4 17.1
to
30/06/2023
3d) CSR/2020/HIL/02 2020 11/11/2020 31.7 11.6 11.6

to 10/11/2023
4) CSR/2019/VRI/01 Project 2019 01/04/2019 10.7 2.3 10

Vriddhi to
31/03/2022
Total 383.3 174.9 302.5

10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created
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 registe
address etc: Not Applicable
d) Provide details of the capital asset(s) created or acquired (including complete address and location o
asset):
Not Applicable
11. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as pe
135(5):
Not Applicable
On behalf of the Board of

Date: 17 February
th
Swati Ajay Piramal Chairperson – Suresh Narayanan Chairman
2022 Corporate Social Responsibility Director
Committee Place: Mumbai Place: Gurugram
ANNEXURE – 3 TO THE BOARD’S REPORT BUSINESS RESPONSIBILITY REP

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-December-2021
7 Sector(s) that the Company is engaged in (industrial Food Processing Industry (covered under various codes as specifi
activity code-wise) under NIC 1987 covering food products)
8 List three key products/services that the Company Product
manufactures/ provides (as in balance sheet)
1. Milk Products and Nutrition
8 List three key products/services that the Company
manufactures/ provides (as in balance sheet)
2. Prepared Dishes and Cooking Aids

3. Beverages
9 Total number of locations where business activity is Please also refer to the Corporate Information page of the Ann
undertaken by the Company Report 2021
(a) Number of International Locations (Provide Exports to Bangladesh, Canada, USA, UK and UAE
details of major 5)
(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/ All India and 30 international markets
National/ International
SECTION B: FINANCIAL DETAILS OF THE COMPANY

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 Total spending on CSR is 2% of the average profit after tax of
(CSR) as percentage of profit after tax (%) 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 List of CSR activities are detailed in the Annual Report of CSR Activiti
has been incurred ANNEXURE – 2 to the Board’s Report.
SECTION C: OTHER DETAILS

1 Does the Company have any Subsidiary Company/ No
Companies?
2 Do the Subsidiary Company/Companies participate Not Applicable

in the BR Initiatives of the parent Company? If
yes, then indicate the number of such subsidiary
Company(s).
3 Do any other entity/entities (e.g. suppliers, The other entity/entities including stakeholders such as suppliers,
distributors etc.) that the Company does business distributors, farmers participate in the BR initiatives of the Com
with, participate in the BR initiatives of the under various programmes initiated by the Company. With num
Company? If yes, then indicate the percentage of stakeholders working across the Company’s different locations a
such entity/entities? operations, it is difficult to estimate the percentage of such initiative
[Less than 30%, 30-60%, More than 60%].
SECTION D: BR INFORMATION
1 Details of Director/Directors responsible for BR
(a) Details of the Director/Director responsible for implementation of DIN 08662504
the BR policy/policies Name Mr. David Steven McDaniel
Designation Executive Director-Finance & Co
and CFO
(b) Details of the BR head DIN Number (if Not Applicable
applicable)
Name Mr. Sanjay Khajuria
Designation Director- Corporate Affairs
Telephone number +91-124-3940000
e-mail id creatingsharedvalue.in@in.nestle
2 Principle-wise (as per NVGs) BR Policy/policies
(a) Details of Compliances (Reply in Y/N)
2
No. Questions P1 P2 P3 P4 P5 P6
1 Do you have a policy/ policies for… Y Y Y Y Y Y
2 Has the policy being formulated in consultation with the relevant Y Y Y Y Y Y
stakeholders?
3 Does the policy conform to any national/ international standards? If Y Y Y Y Y Y
yes, specify?@
4 Has the policy being approved by the Board? Y Y Y Y Y Y

5 If yes, has it been signed by MD/owner/CEO/appropriate Board Y Y Y Y Y Y
Director?
6 Does the Company have a specified committee of the Board/ Y Y Y Y Y Y
Director/ Official to oversee the implementation of the policy?
7 Indicate the link for the policy to be viewed online? Y Y Y Y Y Y
8 Has the policy been formally communicated to all relevant Y Y Y Y Y Y
internal and external stakeholders?
9 Does the Company have an in-house structure to implement the Y Y Y Y Y Y
policy/ policies?
10 Does the Company have a grievance redressal mechanism related N N N N N N
to the policy/ policies to address stakeholders’ grievances related to
the policy/ policies?
(b) If answer to the question at serial number 1 against any principle, is ‘No’, please explain why: (Tick up to 2
options)
3 Governance related to BR
(a) Indicate the frequency with which the Board of Directors, The Board/Committee usually assess the BR perform
Committee of the Board or CEO to assess the BR performance least annually.
of the Company.
(b) Does the Company publish a BR or a Sustainability Report? What is Yes, the BRR 2021 is part of the Annual Report, w
the hyperlink for viewing this report? How frequently it is
published?
@The policies have been derived and adopted from the Nestlé Global Policies and are aligned as per local requirem
safeguard the interests of all its stakeholders.

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 e
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 Compan
vendors. Other significant documents from the Nestlé Group, which define the standard of behaviour of the Company, are Ne
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 percentag
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
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 conc
and/or
opportunities
The Company has a legacy of providing consumers with high quality products under four major categories - Milk Products and Nu
Prepared Dishes and Cooking Aids, Chocolates and Confectionary. The Company has a range of Popularly Positioned Products (PP
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
16-17 year old teenagers (ICMR, 2020). MAGGI Masala Noodles (serve size-75g) provides 18% Iron RDA* for adults and 16% I
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 nutri
A, iron & iodine in an easy and tasty way. The product is an economically viable option that can be used at household level to
fortification of daily consumed foods like vegetables, dal and non- vegetarian preparations. Its easy to use format helps
provide 15% of the daily requirement* of Vitamin A, Iron and Iodine (*Recommended Dietary Allowances for Adult Sedentary
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 fla
treatment that makes the milk germ-free and preserves its nutrients. 1 glass (180 ml) helps meet 8% RDA* of Vitamin A & 9% RDA
(*Recommended Dietary Allowances for Adult Sedentary Male as per Nutrient requirement and recommended daily allowance fo
2010).
2. For each such product, provide the following details in respect of resource use (energy, water, raw m
per unit of product (optional):
(a) Reduction during sourcing/production/ distribution achieved since the previous year throughout th
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 resou
manufacturing. The Company is committed to conservation and optimal utilisation of all resources, reducing waste to zero and fu
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%
around 52%, generation of waste water by around 67%, reduction in specific direct greenhouse gas emissions by 57%.
3. Does the Company have procedures in place for sustainable sourcing (including transportation)? If y
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- ne
standards described in the Nestlé Responsible Sourcing Standard. The requirements of Business Integrity, Human R
standards), Health and Safety and Sustainable environmental standards in their business activities, production processes, service
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, incl
communities surrounding their place of work? If yes, what steps have been taken to improve their capac
capability of local and small vendors?
The Company works with farming communities to ensure sustainable production in the long-term. The Company touches the live
200,000 farmers and practices a strong preference for local procurement of raw materials. In addition to collecting milk a
the Nestlé milk district model successfully to ensure a stable livelihood for local dairy farmers, the Company supports the develop
farmers by assisting them to improve milk productivity and quality through technical assistance, providing veterinary services,
profit basis and promotion of sustainable agricultural practices. During the challenging time of COVID-19, the Company contin
milk which was offered for sale by dairy farmers even during the lockdown. Social distancing and precautionary measures are foll
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, produc
sustainability while supporting them in obtaining 4C (Common Code for the Coffee Community) certification for better coffee pric
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
ensuring the future of high quality coffee, to remain available and affordable today and in the future. During the COVID-19 pand
engagements were continued virtually where on-line soil fertility trainings were conducted by Nestlé agronomists. The Co
collaboration with the Indian Institute of Spices Research (IISR) and Agricultural Universities conducted virtual trainings o
and composting using Coffee Husk. Till 2021, the Company reached out to around 4,400 farmers through trainings, technical
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 Program
(farmer monitoring, focused on practices to ensure MRL compliance-food safety). Supplier BIP includes field extension su
integrated pest management (IPM) programmes of participating farmers e.g., daily/ weekly visits to farmer fields and da
provides a good foundation for effective action. The Company suppliers are key partners in developing responsibly sourced
spices.
The Company has a dedicated supplier development team that works through the Nestlé – Farmer – Supplier model to create sus
sourcing. The team’s objectives include less reliance on imports, supporting sustainable quality and creating a wider, more flexibl
2021, the Company supported more than 60 suppliers through technical assistance, added 19 new suppliers/ supplier locations a
more raw materials. The team also works on developing local vendors through technical assistance to meet the desired quality/ r
for supply to other Nestlé markets.
5. Does the Company have a mechanism to recycle products and waste? If yes what is the percentage o
products and waste (separately as <5%, 5-10%, >10%)? Also, provide details thereof, in about 50 wor
As a responsible manufacturer of food products, the Company has initiated post-consumer waste management projects
provides a good foundation for effective action. The Company suppliers are key partners in developing responsibly sourced
spices.
The Company has a dedicated supplier development team that works through the Nestlé – Farmer – Supplier model to create sus
sourcing. The team’s objectives include less reliance on imports, supporting sustainable quality and creating a wider, more flexibl
2021, the Company supported more than 60 suppliers through technical assistance, added 19 new suppliers/ supplier locations a
more raw materials. The team also works on developing local vendors through technical assistance to meet the desired quality/ r
for supply to other Nestlé markets.
5. Does the Company have a mechanism to recycle products and waste? If yes what is the percentage o
products and waste (separately as <5%, 5-10%, >10%)? Also, provide details thereof, in about 50 wor
As a responsible manufacturer of food products, the Company has initiated post-consumer waste management projects
with waste management service providers as a part of Extended Producer Responsibility (EPR) to collect, segregate and recycle/r
a sustainable way. This initiative not only ensures compliance to “Plastic Waste Management Rules’ 2016”, as amended in
facilitates reinforcement of positive attitude and behaviour towards responsible waste disposal through consumer awareness. Al
carries anti-litter logo for consumer awareness. For easy segregation and recycling, packaging identification logo is placed on the
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 eng
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
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 appr
Metric tonnes of post-consumer plastic packaging waste as a part of our commitment as Extended Producers’ Responsibility.
Principle 3: Employee Wellbeing

1 Please indicate the Total number of employees 7,910
2 Please indicate the Total number of employees hired on 8,878
temporary/contractual/casual basis
3 Please indicate the Number of permanent women employees 1,141
4 Please indicate the Number of permanent employees with 5
disabilities
5 Do you have an employee association that is recognised by The Company has 12 Unions in 8 factories in India
management
6 What percentages of your permanent employees are 55% of the total strength of permanent employees
members of this recognised employee association? unionized.
7 Please indicate the Number of complaints relating to child No complaints relating to child labour, forced la
labour, forced labour, involuntary labour, sexual harassment in involuntary labour and sexual harassment are pe
the last financial year and pending, as on the end of the financial as of end of the year 2021
year.
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 h
balancing business priorities and responsibility towards economic, environmental and social sustainability. The Company bu
productive relationships, fosters working partnerships and considers stakeholders both internal and external as integral to its bus
2. Out of the above, has the Company identified the disadvantaged, vulnerable & marginalized stakeholders?Yes.3. Are there an
words or so. Also, if yes, whether any environmental compliance report is filed?Every year the Company is undertaking various ini
Principle 8: Inclusive Growth1. Does the Company have specified programmes/initiatives/projects in pursuit of the policy related
Notes 1 to 9 corresponding to Principles 1 to 9Principle 11. http://www.nestle.in/investors2. http://www.nestle.com/asset-libra
Principle 71. https://www.nestle.com/asset-library/documents/library/documents/corporate_governance/nestle-policy-transparent
th
Suresh Narayanan

FORM NO. MR – 3 SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021
ST
[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 pr
India Limited (hereinafter called ‘the Company’) for the Financial Year ended 31 December 2021. Secretarial Audit w
st
manner that provided us a reasonable basis for evaluating the corporate conducts / statutory compliances and expressing our op
Based on our verification of the Company’s books and papers, minute books, forms and returns filed and other records maintaine
Company and also the information provided by the Company, its officers, agents and authorized representatives during the cond
Audit, we hereby report that in our opinion, the Company has, during the audit period covering the Financial Year ended 31
2021 complied with statutory provisions listed hereunder and also, that the Company has proper Board-processes and co
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 f
Year ended 31 December 2021 according to the provisions of:
st
(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
Investment, Overseas Direct Investment and External Commercial Borrowings – Not applicable to the extent of Oversea
Investment and External Commercial Borrowings as there were no reportable events during the financia
review.
(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992
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 12 Au th
The Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 (with effect from
2021) – Not applicable as the Company has not issued any shares/ options to directors/ employees under
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 16 Augus th
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 reg
Companies Act and dealing with client; – Not applicable as the Company is not registered as Registrar to an Issu
Transfer Agent during the year under review;
g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009 (up to 9 June 2021) and The Secur
th
Exchange Board of India (Delisting of Equity Shares) Regulations, 2021 (with effect from 10 June 2021) – Not applicable as th
th
has not delisted/ proposed to delist its equity shares during the year under review;
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 reg
Companies Act and dealing with client; – Not applicable as the Company is not registered as Registrar to an Issu
Transfer Agent during the year under review;
g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009 (up to 9 June 2021) and The Secur
th
Exchange Board of India (Delisting of Equity Shares) Regulations, 2021 (with effect from 10 June 2021) – Not applicable as th
th
has not delisted/ proposed to delist its equity shares during the year under review;
h) The Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018 – Not applicable as the Comp
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 16 A
th
Applicable as the Company has not issued and listed Non-convertible securities during the financial year un
(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 th
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 t
Company Secretaries of India;
(ii) The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the Listing Agr
into with the BSE Limited.
During the period under review, the Company has complied with provisions of the Act, Rules, applicable Regulations, Guidelines, Standard
above.
We report that:
 The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Direct
Directors including Women Directors. There were no changes in the composition of the Board of Directors during the period unde
 Adequate notice is given to all Directors to schedule Board Meetings; agenda and detailed notes on agenda were sent at least seven
before the meeting, and a system exists for seeking and obtaining further information and clarifications on the agenda items befor
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 C
by the Company Secretary and taken on record by the Board of Directors at their meeting(s), we are of the opinion that the managemen
systems and processes commensurate with its size and operations, to monitor and ensure compliance with all applicable laws, rules, r
guidelines.
We further report that during the review period, no major action having a bearing on the Company’s affairs in pursuance of the abo
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 re
Company Secretaries
ICSI Unique Code: P1991MH040400
th
Partner
Place : Thane FCS: 4206 | COP No.: 1774
ICSI UDIN : F004206C002575051
Company Secretaries
th
Partner
ICSI UDIN : F004206C002575051
‘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 31 December 2021 of even date is to be read along with this le
st
Management’s Responsibility:
1. It is the responsibility of management of the Company to maintain secretarial records, devise proper systems to ensure com
provisions of all applicable laws and regulations and to ensure that the systems are adequate and operate effective
Auditor’s Responsibility:
2. Our responsibility is to express an opinion on these secretarial records, standards and procedures followed by the Company with res
compliances.
3. We believe that audit evidence and information obtained from the Company’s management is adequate and appropriate for us to p
our opinion.
4. Wherever required, we have obtained the management’s representation about the compliance of laws, rules and regulations and ha
etc.
Disclaimer:
5. We have conducted our Audit remotely, based on the records and information made available to us through electronic p
Company, due to Covid 19 pandemic induced lockdown and restrictions/ work from home policy of the Company in place, for the purpo
report.
6. The Secretarial Audit Report is neither an assurance as to future viability of the Company nor of the efficacy or effectiveness wi
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 Compan
Company Secretaries
th
Partner
ICSI UDIN : F004206C002575051
Information as required under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of the Co
(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, yo
ensures that the products, packaging and operations are safe for employees, consumers and the environment. Your Company en
focus on technologies, processes and improvements that matter for the environment. At Nestlé, sustainability inspires and guide
Company does. Moreover, the Company gives highest priority to ensure environmental friendly practices at all factories and offic
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 a
operations, including those for energy generation and effective usage of sources/ equipment used for generation. Within the Com
continuous efforts towards improving operational efficiencies, minimizing consumption of natural resources and reducing water,
emissions while maximizing production volumes.
During the year, twelve energy reduction projects were undertaken by factories of the Company which will result in
annualized savings of approximately 19,244 Gigajoules (saving of 0.51% of total annual energy consumption) and should be realiz
three years. Some of the projects undertaken at different factory locations include steam optimization in evaporators and vacuum
electricity optimization in compressed air operations; and electricity optimization in heating, ventilation, and air conditioning ope
During the year, water reduction projects were initiated in different factories locations. This, inter-alia, resulted in reductio
consumption and reuse of recycled water in a more efficient manner. The projects undertaken will result in savings of approxima
(saving of 2.30 % of total annual water consumption) and shall be realized in the next two to three years. One of the key initiative
water savings in 2021 was increasing the utilization of treated effluent after polishing through high technology Reverse Osmosis (
Further, your Company have also initiated projects, leading to reduction of pollution and protection of the enviro
reduction is driven at the material usage level and measured in value terms as well. Below were the Key Performance Indicators (
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 norm
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 fur
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 de
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, recy
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.
(b) Additional Investment
Following are the additional proposals, which are initiated for implementation during 2022 at different factory locations:
• 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.

(c) Impact of the measures at (a) and (b) above for reduction of energy consumption and consequent im
cost of
production of goods
During the years, at the factories there have been continuous efforts to improve operational efficiencies, minimizing con
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
around 43%, water usage by around 52%, generation of waste water by around 67% and specific direct greenhouse gas
around 57%.
(d) Projects planned or initiated for further improvement in energy and water consumption are: Energy
different factory locations:
• 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 t
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
central R&D efforts and activities of the Nestlé Group. Nestlé Group spends enormous amounts and efforts in R&D and in gaining
experiences. It has therefore been possible for your Company to focus its efforts on testing and modification of products for loca
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, m
quality and safe products, improve yields, input substitution and achieve more efficient operations. Consequently, the consumers
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
new products in the market, improvement of packaging and enhancement of product quality/ profile, to offer better products at
affordable prices to the consumers.
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 a
Swiss Francs. The local expenditure of the Company in the nature of Research and Development are primarily those incurred for testing an
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 absorb
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
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 fr
collaborators. Technology transfer has to be an ongoing process and not a one-time exercise, for the Company to remain competitive and
and value for money products to the consumers. This has been secured by the Company under the General Licence Agreement with the co
provides access for licence to use the technology and improvements thereof, for the product categories, manufactured/ sold by the Comp
continuous basis.
C. FOREIGN EXCHANGE EARNINGS AND OUTGO
(a) Activities relating to exports; initiatives taken to improve the exports; development of new export market f
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 earning
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 m
resident shareholders on account of dividend
th
Suresh Narayanan

Statement of Disclosure of Remuneration under Section 197 of Companies Act, 2013 and Rule 5(1) of Co
(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
#
year:
Name of Director Designation Ratio to m

remune
Mr. Suresh Narayanan Chairman and Managing Director of the emplo
Mr. David Steven McDaniel Executive Director - Finance & Control and CFO
Mr. Matthias Christoph Lohner Executive Director - Technica
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 require
#
applicable.
ii. The % increase in remuneration of each director , Chief Financial Officer, Chief Executive Officer, Company Secretary or Man
#
financial year:
Name of Employee Designation % incre

Mr. Suresh Narayanan Chairman and Managing Director remune
Mr. David Steven McDaniel A
Executive Director – Finance & Control and CFO Not Com
Mr. Matthias Christoph Lohner B
Executive Director – Technical Not Com
Mr. B. Murli c
General Counsel and Company Secretary
Since Independent Non-Executive Directors received no remuneration, except sitting fees for attending Board/ Committee meetin
#
required de
Appointed as Executive Director – Finance & Control and CFO with effe
A
Appointed as Executive Director – Technical with effect f

B
Decrease in remuneration is on account of lower value

C
iii.
The % increase in the median remuneration of employees in the fin
iv. The number of permanent employees on the rolls of th
v. Average percentile increase already made in the salaries of employees other than the managerial personnel in the last fin
comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptio
for increase in the managerial remuneration: The median percentage increase made in the salaries of employees other than the man
was 10.8%, while the increase in the remuneration of managerial personnel was 2.4%. These increases are a function of the
competitiveness within its comparator group as ascertained through the detailed salary benchmarking survey the Company un
The increase during the year reflects the Company’s reward philosophy as well as the results of the benc
vi. The key parameters for any variable component of remuneration availed by the directors: Variable Component is a critic
Rewards and delivers value for employees who deliver tangible results for the business, against agreed targets. Employees includi
Personnel, Annual short-term Bonus is linked to both Company and Indivi
vii. It is hereby affirmed that the remuneration is as per the Remuneration Polic
On behalf of the Boa

th
Suresh Narayanan
NOTES
NOTES
'tl' ...--1-
"
FACEoFI ear a mask.
\I Be a #FaceOfHope
HOPE
A etter tomorrow is not just something we're hoping for,
but something we're working towards,
together.
oys,
And all the big reunions.
And for this shared tomorrow, We need to come together today, Now, even if it's tough,
Even if we can't take it anymore.
Because sometimes for the greater good, We have to make slight adjustments.
Like settling for the quarter plate when the guest list's too long. And letting go of the good chair for somebody that wants it more. Adjust
made,
That we need to make once more.
And wear a mask and become the face of hope, For you, for them, for us.
And so even if our smiles are hidden, We're okay with that.
Because our hidden smiles today,
Will be the reason for a billion smiles tomorrow. And so every time you think that you're alone, Know that you're not,
That we too are doing our bit, Covering our faces, masking our faces,
And becoming the face of hope."
ture
ture
mited
ia
Director
h
Director
neral Counsel and Company Secretary

ng Lasting Partnerships17. Empowering and Engaging Our People21. Corporate Information22. 10 - Year Financial Highlights23. Board’s Report39
ctivities117. Annexure 3: Business Responsibility Report127. Annexure 4: Secretarial Audit Report130. Annexure 5: Report on Conservation of Energy et
ry kits, healthcare equipment, PPE, masks,
s and sanitisers. Your Company also setup
ns. The Company's brands are known for
rengthened further with the Face of Hope
e, reaching out to over 250 million people to
amidst the pandemic.
fer employment opportunities,
t and has welcomed people through regular
ernship. Your Company further intensified
health coverage for employees, provided

by the families of colleagues who
he pandemic.
rent relationships have been at the heart of
y has been focussed on the safety and
rs in these challenging times. Your Company
, communities, and the broader ecosystem
nterventions, steered by the Company’s
ensured that partners received their
all supplier suffered. Your Company also
gitalization across the supply chain.
a will be strengthened moving forward.
ging between urban and rural India, leading
on of branded goods with high quality,
ls. Organizations that will act in the interest
ers, and society at large will reinforce their
d strengthen the bond they have with
s journey, Founder Henri Nestlé set a

healthier future. Henri’s development of
estlé’s commitment to society. This
forward by your Company for over 150
entered around “Unlocking the power of food
veryone, today and for generations to
ecade of the 21 century, it is our hope that

st
nd commitment enshrined in the searing

tlé gives us the inspiration and the hope to
ndia with passion and determination.
ctor
ture
nitiatives
Partnerships
lity
ng
g
ove operational
ucing water, energy
age
tion)
021
e Water Generation
on of production)
021
Waterways Lanes
2019 0
2021
4
r Sized Vehicles
MANAGEMENT
c Digester Manure Separator
PARTNERSHIP
on with knowledge Partners
ging
tter World
ng
our Packaging since 2018*

ital Monitoring
nda
nnar
2025.
sing the suffering of
nities
t and 5.7 indirect)
ure taken pre-pandemic

oss
Access to Clean
Water
150,000
aries
Girl Students
lassrooms
villages -
Conservation
andemic
Plants 5 factory ons
ps
y
Safe supply of milk for
ness to all Driver
ution to drivers
t Early Payments
tes
t Livelihoods (farm profitability)

tainable cocoa for
2025 Sustainable Cocoa
ur People
oyees fully vaccinated
ance and improving
rning
Scholarship:
holarships of INR 50,000 per
course of choice
g Management
r 1000+ courses
upport
nables learning
forcing our
India over next

ctor David S.
hnical
an Resources
ly Chain
& Company Secretary Chandan Mukherji -
ions Krishna Guha Roy - ISIT/Nestlé
a - Dairy
es
ectionery
porate Affairs
rages
tlé Professional Vineet Singh -
khamba Lane, New Delhi - 110001
Block,
002 (Haryana)
4, Gurugram - 122003
No. 2, Harrington Road, Chetpet, Chennai –
08, Major Arterial Road, Block – AF, New Town,
ki Vihar Telephone Exchange, Saki Vihar Road,
holim Taluka - 403504 (Goa)

rial Area, Ponda - 403406 (Goa)
na Road, Samalkha - 132101 Dist. Panipat
– Una – 174301 (Himachal Pradesh)

1301 Mysore District (Karnataka)
Kingwah Canal, Moga - 142001(Punjab)
Nilgiris (Tamil Nadu)
egrated Industrial Estate, SIDCUL, Pantnagar-
ttarakhand)
DC Industrial Estate, Siyawada Chokadi, Near
Ahmedabad, (Gujarat)
/2, Jhandewalan Extension, New Delhi, 110055

Fax No : 011-41540064
g Fees paid)
ebhoy Towers, Dalal Street, Mumbai - 400001
M. IST
ther Audio Visual Means (VC/OAVM) Facility
red Office: 100/ 101, World Trade Centre,
1]
llions (except otherwise stated)
2013 2012
90,619 83,023
16,941 15,400
18.7 18.5
11,171 10,679
12.3 12.9
23,687 17,984
53.6 69.5
17,964 16,934
19.8 20.4
3,282 9,744
3.6 11.7
115.9 110.8
48.5 48.5
510,738 481,153
7,159 7,008
ure of Indirect taxes.
nancial ratios are given below:
2021
22.2
14.7
104.5
1.6
9.8
88.6
as it has negligible debt.
ed a contingency provision of
ear ` 1,088.9 million) for various
y from matters, which are under
putes and other uncertainties
SALES
2019 2020 2021

to implementation of Goods
udgement. Your Company has

ettled contingency provision of `
ear ` 580.2 million) due to the
ations and settlement of obligations
onger required.
ses the aggregate of past
ost and incidental expenses
ntation of the ‘Future Ready Plan’
21, for certain category of
y Plan’ is a combination of amended
eme for past period of service and a
for future service. For details
f the Financial Statement attached.
360
340
320
300
280
260
240
220
200
180
160
140
120
100
80
60
40
20
0
19*# 2020 2021^

Dividend
per Share
of `180 per share paid in 2019 out of
e with implementation of Ind AS 116
mpact of Exceptional Item (Transition
SSETS
6
19* 2020 2021

ments and Capital work-in-progress.
mpacted due to implementation of
implementation of Ind AS 116 Leases.
20
8
4
0
2021
2020
Net Sales per
Employee
are impacted due to implementation of
e recommended a final dividend

are amounting to ` 6,267.0 million
pproval of the members at the 63 rd
ng of the Company (“63 AGM”). rd
2021 aggregates to ` 200/- per

udes interim dividend of ` 25/- and
are paid on 19 May 2021 and
th
is in accordance with the Dividend Distribution Policy (“Policy”) of the Company. The Policy is available on the website of the Company at https:
spectively.
opose to transfer any amount to the

eepened its engagement into newer
ompany progressed firmly and resolutely
that was accelerated further by
customized portfolio and building
ct. Your Company delivered
formance in addition to sustained
classes and urban agglomerates.
rong acceleration. Growth was
g formats such as quick commerce
ading to lower delivery times and
rience. Organized trade witnessed
venue growth, despite the second
d to leverage the strength of its

products with the ‘new normal’. Its
engthened their equity and forged
mitment to ‘Make in India’ through

acturing facilities, your Company’s
anufacturing factory in Sanand in
portfolio, became fully operational
also commissioned a new KITKAT
in Goa in 2021.
be an engine of growth
tion pipeline of products continues
oss categories such as Prepared
s, Chocolates and Confectionery,
tion. Your Company has launched
since 2016 and another 20 projects
al analytics
wth accelerator for your
nue to be so in the future.
tics is your Company business

-intelligent data analytics system
d external data to converge
t and decisive business actions.
kforce with respect at
rt of Nestlé India, where confluence

s, diverse skills and experiences
th. Your Company has a
ce, where 72% are millennials.
t and dignity are anchored on the
ues’ of Nestlé India. Women
w hires in 2021. In the Sanand
the workforce are women.
y crafted by culinary experts, using
19 herbs and spices from across
acking among consumers, your

ew variants of MAGGI Hot n Sweet
xtra Hot’.
expanded its presence in South
a new variant MAGGI Masala-vin-
tailormade for South Indian cuisine
d flavor of everyday meals.
ned consumer trust with an anti-
021, creating awareness amongst
t and purchase the authentic
ith the goodness of iron.
hed the QR Code Anti-Counterfeit
onsumers, retailers and authorities
of MAGGI Masala-ae-Magic within
‘MAGGI Desh ke Liye 2 Minute

initiative, which received 10,000
ere supported with funds,
o start their own food business.
umers searching how-to-cook
GI’s website carrying recipes
nd forged strong partnerships with

p
day cooking and became their ally
ent to sustainability, your Company,

Plan that sources seven spices
continued to partner with farmers
stainable agricultural practices
ater usage and biodiversity
me time, your Company stayed
ihood and farm profitability.
ast Cereals
Nestlé GOLD Corn and Oat flakes
d proposition in
tlé GOLD Corn and Oat flakes is
ents such as zinc, iron and
H was renovated with improved
whole grains.
unched KOKO
rther strengthening the kids cereal
ent to sustainability, your Company,
Plan that sources seven spices
continued to partner with farmers
stainable agricultural practices
ater usage and biodiversity
me time, your Company stayed
ihood and farm profitability.
ast Cereals
Nestlé GOLD Corn and Oat flakes
d proposition in
tlé GOLD Corn and Oat flakes is
ents such as zinc, iron and
H was renovated with improved
whole grains.
unched KOKO
rther strengthening the kids cereal
accelerate growth through a multi-
uilding its presence in nutritional
ts such as RESOURCE HIGH
IABETIC and OPTIFAST. In order
your Company renovated

EIN with immunonutrients. Your
rition portfolio witnessed robust
agship product PEPTAMEN for
es Portfolio
d to focus on growing the Coffee
s by remaining consistent on the
uilding coffee consumption habit
AFÉ registered yet another year of
growth, based on significant growth
n and increase in market share.
d its thrust on innovation while
needs of consumers with the
in
premix affordably priced at ` 10
ast – an intense cup for strong
ated its premiumization journey,

s best with NESCAFÉ Gold. With
packaging solutions, NESCAFÉ Gold
to delight consumers with a café
e, resulting in strong brand growth.
ahead in its journey of driving
n the southern part of India with the
ecipe for NESCAFÉ SUNRISE
and aroma, in its distinct granulated
also expanded its portfolio with
NRISE Liquid Decoction which is a
oction for consumers desiring a filter
ng initiatives, your Company

e frontline COVID warriors and
g the testing times.
d to remain committed to
ment and supporting the coffee
ability initiatives. Through the
mpany trained and supported
agricultural practices that improve
income.
-chicory blend was introduced in
ery and the increased need of

r friendly solutions, your company
ifferentiated solutions to address
ew age food service industry. 2021
step solutions to help make popular
anchurian sauce, that were
n addition to products, your
cus on service support by providing
omers build a strong menu with
antry usage and easy delivery.
to grow and invest into the kiosk
reneurship for Youth” which helped
b opportunities for franchisers.
00+ franchise operated kiosks
ting sustainable business for the
unlock scalability, new kiosk
rolley plus were also launched year
preneurs to participate in this
nity with lower investments
ance and commitment has been

ustry forums for its work in the
ement, marketing and quality
zed Mr. Suresh Narayanan as
ess Leader Awards (IBLA)

s the “Outstanding Company of the
Chairman and Managing Director,

d as the Entrepreneurial CEO at EY
2020
honoured amongst the Top 101
mpions Globally
ar BrandZ India’s Most Purposeful
dia awarded the most preferred

men Daily and Zee Business
r its best-in-class marketing
sing communication and awarded 2
e metal at the EFFIES.
d at the Brand Equity Media
won gold in ET SPOTT Awards 2021

omotions on audio or music
s the “Outstanding Company of the
Chairman and Managing Director,

d as the Entrepreneurial CEO at EY
2020
honoured amongst the Top 101
mpions Globally
ar BrandZ India’s Most Purposeful
dia awarded the most preferred

men Daily and Zee Business
r its best-in-class marketing
sing communication and awarded 2
e metal at the EFFIES.
d at the Brand Equity Media
won gold in ET SPOTT Awards 2021

omotions on audio or music
odel of training of leveraging
ct matter experts, customized
ise, the sales teams motivated
mprove performance.
eers participated in the ‘Virtual
ogramme’. Over 250 sessions were
nvironment, health and hygiene by
impacting the lives of hundreds of
ents, women and waste workers.
d trade witnessed a resurgence and

it continued on its path of robust
arge metros, and also in smaller
of the second COVID-19 wave
irmly and resolutely on its
a healthy mix of a customized
ion and enhanced distribution
nt of resources, regional and
enhanced visibility, participation
ng consumer connect. Through
mpany reached out to small towns
100,000 and large villages with
,000, that offer long-term growth
owed strong acceleration and its

new emerging formats such as
ick & Mortar, leading to lower
oved shopper experience. Your
re last mile access were aided by
rce channels. E-commerce made
accessible at point of purchase,
offerings to consumers through
oduct propositions through targeted
brands such as MAGGI, NESCAFÉ,
NGROW, MILKMAID, RESOURCE
n relaxation after the second wave,
el stabilization and shopper mobility
nels.
d a resilient supply chain that

h despite adversities caused by the
9. Staying agile it continued
om over 400 suppliers and over
nsuring the safety of its partners
ategories like edible oils, coffee,

bullish while costs of packaging
ncrease amid supply constraints,
ts and developing economies (IMF
2021).
many middle-income countries
on rates, and sizable fiscal support
he adverse economic impacts of the
dimensional challenges confronted
as subdued employment growth
in 2021 following the broad-based

es of several commodities reaching
ergy prices surged in the second
for natural gas and coal, owing to
onstrained supply. Non-energy
ed.
o 5.2% in 2021, because of
ottlenecks and rising freight costs
ing global production and trade,
ntial goods. Food prices shot up by
eir highest levels in a decade, with
ble oils, cereals and dairy prices
ons in 2021 sapped consumer

more limited degree than the earlier
t 2022), though emergence of new
market confidence and derail economic
mic recovery is expected to be slow

ring pandemic waves disrupt
covery is also at risk from more
inflationary pressures, financial stress
s. As the world confronts the
ency its economic impact is also
en underway in the Indian economy

second wave of the pandemic
from a rapid surge in infections
y the rapid transmissibility of the
nation and substantially reduced

mproved consumer confidence
cination is important for opening
a delivered 157 crore doses that
with at least one dose and 66 crore
c Survey 2021-2022).
ed in the July–September quarter of
t 8.4% year on year (YoY) in Q2
driven by strong exports,
ic recovery, and domestic private
ramped up production to meet
Insights, 2022). In September 2021
inflationary pressures, financial stress
s. As the world confronts the
ency its economic impact is also
en underway in the Indian economy

second wave of the pandemic
from a rapid surge in infections
y the rapid transmissibility of the
nation and substantially reduced

mproved consumer confidence
cination is important for opening
a delivered 157 crore doses that
with at least one dose and 66 crore
c Survey 2021-2022).
ed in the July–September quarter of
t 8.4% year on year (YoY) in Q2
driven by strong exports,
ic recovery, and domestic private
ramped up production to meet
Insights, 2022). In September 2021
VID-19 pandemic led to increased
food (KPMG 2021). Rural areas
e expected to continue driving the
od.
continue to leverage their in-depth

nutrition, quality and safety
enovate, and adapt to this new
o new demands, reset defining
mers and reconsider their product
D era to make products healthier,
make informed choices.
growth
asing impact on the FMCG industry
mic as consumers increased their
D-19 changed consumer habits,
e contribution of e-commerce to their
waves, and stabilization at higher
uman touch
more digitally active. According to
pandemic has fundamentally
usiness, and the companies with
ies had significant advantage. To
panies are making digital, and
across the business model. To
e of the future and enable it to
xperience, businesses will have to
er experience more authentic, more
bringing elements of tactile
eel, smell, taste) as well as making
authentic by including multilingual
omer reach and acceptance.
y and committing to planet
e will require a multi-stakeholder
nd monitor progress, laying the
orld. This includes regenerative
ansition to 100% renewable
rmulating products to make them
is a need for accelerating actions
ouse gas emissions, creating more
ckaging products.
ts factories introduced life-saving

for your Company and it has been
rom design stage to ensuring world
e a safe workplace. Best in class
been deployed which has not only
time but also taken the safety of
se either expressed or implied in
on the circumstances.
lity Statement
he annual accounts for the year

1, the applicable accounting
wed and no material departures
ame;
h accounting policies and applied
made judgments and estimates
rudent so as to give a true and fair
fairs of the Company as at 31 st
rofits of the Company for that period;

and sufficient care for the
accounting records in accordance
Act for safeguarding the assets of
venting and detecting fraud and
e annual accounts on a going
ternal financial controls to be followed

h internal financial controls are adequate
y; and
er systems to ensure compliance
applicable laws and that such
nd operating effectively.
nagerial Personnel
hner (DIN: 08934420) Executive
retires by rotation at the 63 AGM,
rd
ered himself for re-appointment. A

oval of the members for his re-
of the Notice of the 63 AGM. As per
rd
ent, his re-appointment at the 63 rd
by rotation would not constitute

as a Whole-time Director,
Director – Technical”.
ndation of the Nomination and
, the Board of Directors of
ded appointment of Ms. Anjali
t Non-Executive Director of the
term of five years from 1 May 2022,
st
approval by way of a special

Ms. Anjali Bansal fulfils the criteria
n and Remuneration Policy of the
ertise, experience, proficiency and
pertise in specific functional

onships between directors inter-se,
hner (DIN: 08934420) Executive
retires by rotation at the 63 AGM,
rd
ered himself for re-appointment. A

oval of the members for his re-
of the Notice of the 63 AGM. As per
rd
ent, his re-appointment at the 63 rd
by rotation would not constitute

as a Whole-time Director,
Director – Technical”.
ndation of the Nomination and
, the Board of Directors of
ded appointment of Ms. Anjali
t Non-Executive Director of the
term of five years from 1 May 2022,
st
approval by way of a special

Ms. Anjali Bansal fulfils the criteria
n and Remuneration Policy of the
ertise, experience, proficiency and
pertise in specific functional

onships between directors inter-se,
rmulated a CSR Policy, which is available on the website of the Company at https://www.nestle.in/investors/policies. Annual Report on CSR a
ering and segregation at source.
tion, as a part of Hilldaari, your
artners organized virtual training
soorie, Nainital, Mahabaleshwar,
elp them adapt to the changes in
g them with safer working
vided with PPE kits and safety kits
Training was also provided how to
m contact, ensure proper
ore meeting other people at their
ways of collecting and disposing
uch as establishing 4-part
wet waste, domestic bio-medical
te) for collection and proper
workers were trained to use
monitoring apps required for
and segregation of waste. The
trained in availing relevant
ty Report
fundamental to how your Company
pany believes that it can only be
m by creating value both for its
ety. Your Company is mindful of the
and works to make a positive
ximum value for the society. It has
in a way that delivers long-term
ts society.
sting Regulations, the Business
cribing the initiatives taken by the
onmental, social and governance
Annexure 3 and forms an integral
.
d Auditors’ Report
the Companies Act, 2013, read
t and Auditors) Rules, 2014, the
o. LLP, Chartered Accountants (ICAI
W/W-100022) (“M/s. BSR”), as the
Company, expires at the conclusion
ny.
R on the financial statement of the
21 is part of the Annual Report. The
referred to in the Auditor’s Report are
ot call for any further comments.
not contain any qualification,
or disclaimer. During the year under
not reported any matter under
ct, therefore no detail is required to
n 134 (3) (ca) of the Act.
cribing the initiatives taken by the
onmental, social and governance
Annexure 3 and forms an integral
.
d Auditors’ Report
the Companies Act, 2013, read
t and Auditors) Rules, 2014, the
o. LLP, Chartered Accountants (ICAI
W/W-100022) (“M/s. BSR”), as the
Company, expires at the conclusion
ny.
R on the financial statement of the
21 is part of the Annual Report. The
referred to in the Auditor’s Report are
ot call for any further comments.
not contain any qualification,
or disclaimer. During the year under
not reported any matter under
ct, therefore no detail is required to
n 134 (3) (ca) of the Act.
rial StandardsThe Secretarial Audit was carried out by M/s. S.N. Ananthasubramanian & Co., Company Secretaries (PCS Registration No.:
the RMC comprised of Mr. Suresh Narayanan (Chairman), Mr. P. R. Ramesh (Member), Ms. Roopa Kudva (Member) and Mr. David Steven McDanie
an report Infant Code violations directly to the Ombudsman, with adequate safeguard to protect the employee reporting.The Company sensitizes the availa
were no transaction requiring
n respect of matters relating to:
osits covered under Chapter V of
hares with differential rights as to
; (c) issue of shares (including sweat
ees of the Company under any
through preferential allotment or
nt; (e) significant or material order
or Courts or Tribunals which
status and Company’s operations
y proceeding under the Insolvency and
(g) instance of one-time settlement with
on.
healthy, cordial and harmonious

evels. Despite severe competition,
stinting efforts of the employees
ny to remain at the forefront of the
d to receive co-operation and

e distributors, retailers, stockist,
ciated with the Company as its
ectors wish to place on record their
and your Company will continue in
nurture strong links with trade,
ect and co-operation with each
consumer interest.
to operate efficiently because of the

, creativity, integrity and
in all functions and areas as well as
Company’s resources for sustainable and
h to place on record their

and loyal services rendered by each and
whose whole-hearted efforts, the
mance would not have been
k forward to the long-term future with
Directors
Suresh Narayanan
Chairman and Managing Director
to operate efficiently because of the
, creativity, integrity and
in all functions and areas as well as
Company’s resources for sustainable and
h to place on record their

and loyal services rendered by each and
whose whole-hearted efforts, the
mance would not have been
k forward to the long-term future with
Directors
Suresh Narayanan
Chairman and Managing Director
Financial Statements Opinion
statements of Nestlé India Limited (“the
balance sheet as at 31 December 2021,
d loss (including other comprehensive
in equity and statement of cash flows for
o the financial statements, including a
ounting policies and other explanatory
best of our information and according

s, the aforesaid financial statements give
e Companies Act, 2013 (“Act”) in the
rue and fair view in conformity with the
accepted in India, of the state of affairs of
2021, and profit and other comprehensive
s cash flows for the year ended on that date.
dance with the Standards on Auditing

143(10) of the Act. Our responsibilities
scribed in the Auditor’s Responsibilities
Statements section of our report. We are
accordance with the Code of Ethics issued
ountants of India together with the
elevant to our audit of the financial
s of the Act and the Rules thereunder,
ethical responsibilities in accordance with
e of Ethics. We believe that the audit
sufficient and appropriate to provide a
nancial statements.
ers that, in our professional judgment,

ur audit of the financial statements of
ers were addressed in the context of our
ts as a whole, and in forming our opinion
a separate opinion on these matters.
ssed in our audit

opriateness of the revenue
es by comparing with
ested the implementation and

ternal controls including general
on controls over recognition of
testing by selecting samples of

uring the year by testing the
uded invoices, good dispatch
and shipping documents (as
cal procedures on revenue

ntify unusual variances.
ple basis, specific revenue
d after the financial year end
e revenue had been recognised
d.
entries posted to revenue to
ssed in our audit
mplementation and operating

controls around the
provisions.
spect of significant provisions
and legal team.
matter experts, wherever
of provisions in light of the
cable regulations and related
ties.
ptions and critical judgements
pacted their estimate of provision
ents previously made by the
ctions or any relevant opinions
rs and assessing whether there
t bias.
n of provision on a test check
ssed in our audit
plementation and operating

rols over completeness and
s used in valuation of defined
ged the key assumptions in

gation.
in valuation of defined benefit
riateness of the accounting

he financial statements in
sion scheme and changes in the
ccordance with Ind AS 19 –
for safeguarding of the assets of the

and detecting frauds and other
application of appropriate accounting
and estimates that are reasonable and
ntation and maintenance of adequate
at were operating effectively for ensuring
the accounting records, relevant to the
of the financial statements that give a true
rom material misstatement, whether due
statements, the Management and Board

for assessing the Company’s ability to
disclosing, as applicable, matters related
the going concern basis of accounting
s either intends to liquidate the Company or
realistic alternative but to do so.
responsible for overseeing the Company’s
es for the Audit of the Financial
n reasonable assurance about whether the

hole are free from material misstatement,
, and to issue an auditor’s report that
ble assurance is a high level of assurance,
audit conducted in accordance with SAs will
atement when it exists. Misstatements
ternal control that we identify during our
d with governance with a statement that
evant ethical requirements regarding
nicate with them all relationships and
onably be thought to bear on our
icable, related safeguards.
ted with those charged with governance,
at were of most significance in the audit of
he current period and are therefore the
e these matters in our auditors’ report
udes public disclosure about the matter
cumstances, we determine that a matter
our report because the adverse
d reasonably be expected to outweigh the
h communication.
d Regulatory Requirements
ies (Auditors’ Report) Order, 2016 (“the
Government in terms of section 143 (11) of
re A” a statement on the matters
of the Order, to the extent applicable.
43(3) of the Act, we report that:
tained all the information and
best of our knowledge and belief were
f our audit.
ks of account as required by law have been
t appears from our examination of those
tatement of profit and loss (including
the statement of changes in equity and the
with by this report are in agreement
esaid financial statements comply with the

n 133 of the Act.
representations received from the
21 taken on record by the Board of
rs is disqualified as on 31 December 2021
rector in terms of Section 164(2) of the
equacy of the internal financial controls
21 taken on record by the Board of
rs is disqualified as on 31 December 2021
rector in terms of Section 164(2) of the
equacy of the internal financial controls
l statements regarding holdings as well
during the period from 8 November 2016 to
ade in these financial statements since they
nded 31 December 2021.
e included in the Auditors’ Report under
e information and explanations given to

ompany to its directors during the
e provisions of Section 197 of the Act. The
not in excess of the limit laid down under
ry of Corporate Affairs has not prescribed
which are required to be commented
100022
Vikram Advani
Partner
ed any deposits covered under section 73
visions of the Companies Act, 2013 and the
rdingly, clause 3(v) of the Order is not
ed the records maintained by the

prescribed by Central Government for
der sub section (1) of Section 148 of the
at prima facie, the prescribed accounts
nd maintained. However, we have not made
ecords.
nformation and explanations given to us
ation of the records of the Company,
the books of account in respect of
ncluding Provident Fund, Employees’ State
f Customs, Goods and Services Tax, Cess
dues have been regularly deposited
y with the appropriate authorities.
n and explanations given to us and on
of the records of the Company, no
n respect of Provident Fund, Employees’
Duty of customs, Goods and Services
atutory dues were in arrears as at 31
more than six months from the date they
mation and explanations given to us and

on of the records of the Company,
1, there are no dues of Income-tax,
tax, Service tax, Duty of customs, Duty
which have not been deposited on account
on and explanations given to us and on
of the records of the Company, the
n repayment of dues to its bankers. The
s payable to any financial institutions,
ders during the year.
raised any money by way of initial
er (including debt instruments) and
Accordingly, the provisions of clause 3(ix)
to the Company.
on and explanations given to us, no
ny or no material fraud on the Company by
een noticed or reported during the year.
raised any money by way of initial
er (including debt instruments) and
Accordingly, the provisions of clause 3(ix)
to the Company.
on and explanations given to us, no
ny or no material fraud on the Company by
een noticed or reported during the year.
ement of shares or fully or partly convertible

Accordingly, clause 3(xiv) of the Order is not
applicable.
n and explanations given to us and based
ds of the Company, the Company has not
tions with directors or persons connected
y, clause 3(xv) of the Order is not applicable.
and explanations given to us, the Company is
er section 45-IA of the Reserve Bank of India
Act, 1934.
For B S R & Co. LLP
Firm’s registration no.: 101248W/W-100022
Vikram Advani
ry 2022 Partner
p No.: 091765 UDIN: 22091765ACXFTN7243
mpanies Auditors Report Order, 2016
(` in Million)
Forum where case

is pending
Supreme Court
High Court
Commissioner
Tribunal
National Anti-Profiteering
Authority
High Court
High Court
Tribunal
Appellate & Revisional Board
Commissioner (Appeals)
Commissioner
Joint Commissioner (Appeals)

Joint Commissioner
Additional Commissioner
Assessing Officer
Court of revisional authority
Supreme Court
High Court
Comissioner of Income Tax
Income Tax Appellate Tribunal
ents and their operating effectiveness. Our
s with reference to financial statements
anding of such internal financial controls,
weakness exists, and testing and evaluating
ess of internal control based on the assessed
nd on the auditor’s judgement, including the
material misstatement of the financial
statements, whether due to fraud or error.
dence we have obtained is sufficient and
s for our audit opinion on the Company’s
trols with reference to financial statements.
nancial controls with Reference to
Financial Statements
ncial controls with reference to financial
o provide reasonable assurance regarding
eporting and the preparation of financial
ses in accordance with generally accepted
ompany’s internal financial controls with
nclude those policies and procedures that
ance of records that, in reasonable detail,
sactions and dispositions of the assets of the
ssurance that transactions are recorded as
n of financial statements in accordance with
ciples, and that receipts and expenditures of
ly in accordance with authorisations of
the company; and (3) provide reasonable
ention or timely detection of unauthorised
n of the company’s assets that could have a
material effect on the financial statements.
of Internal Financial controls with
Reference to Financial Statements
ations of internal financial controls with
ents, including the possibility of collusion or
f controls, material misstatements due to
not be detected. Also, projections of any
financial controls with reference to financial
subject to the risk that the internal financial
ancial statements may become inadequate
ns, or that the degree of compliance with the
policies or procedures may deteriorate.
For B S R & Co. LLP
Vikram Advani
ry 2022 Partner
hip No. 091765 UDIN: 22091765ACXFTN7243
not be detected. Also, projections of any
financial controls with reference to financial
subject to the risk that the internal financial
ancial statements may become inadequate
ns, or that the degree of compliance with the
policies or procedures may deteriorate.
For B S R & Co. LLP
Vikram Advani
ry 2022 Partner
hip No. 091765 UDIN: 22091765ACXFTN7243
As at 31 December
2020
(` in million)
19,680.0
6,385.8
2,114.1
7,408.3
465.5
199.2
893.6
37,146.5
14,164.8
7,229.4
1,649.3
17,548.0
150.7
132.2
589.6
-
386.8
-
41,850.8
78,997.3
964.2
19,229.2
20,193.4
317.2
657.6
32,682.7
220.9
33,878.4
As at 31 December
2020
(` in million)
31.2
937.6
14,228.2
468.9
202.3
2,722.0
3,687.6
1,059.6
98.0
1,490.1
24,925.5
78,997.3
s For B S R & Co. LLP
B. MURLI
General Counsel &
Company Secretary
Year ended 31
December 2020
(` in million)
126,427.7
6,473.9
132,901.6
598.7
133,500.3
1,458.5
134,958.8
55,542.4
1,890.0
(693.3)
15,009.5
1,641.8
3,703.8
29,132.8
-
139.7
464.2
106,830.9
28,127.9
-
28,127.9
7,634.2
(330.6) 7,303.6
20,824.3
Year ended 31 December 2020

(` in million)
(1,236.5)
311.2
(925.3)
4.3
(1.1)
3.2
(922.1)
19,902.2
96,415,716
215.98
28,775.4
B. MURLI
General Counsel &
Company Secretary
Year ended 31 December 2020
(` in million)
28,127.9
3,703.8
- (49.0)
(1,458.5)
180.4
- 85.0
6.0
12.6
30,608.2
(416.0)
(1,334.1)
(109.7)
225.6
412.0
114.3
2,073.4
31,573.7
(7,028.9)
24,544.8
(4,783.6)
42.4
-
- 29.1
20.4
(350.0)
350.0
1,477.1
(3,214.6)
30.8
(5.4)
(85.0)
(601.8)
(18,897.5)
(19,558.9)
1,771.3
12,931.6
10,074.5
23,006.1
17,548.0
7,229.4
24,777.4
1,771.3
Year ended
31 December 2020
(` in million)
348.4
220.9
1,126.5
1,695.8
S 7 on ‘Statement of Cash Flows’.
B. MURLI
General Counsel &
Company Secretary
(` in million)
rehensive
Effective Total
portion of
Cash Flow
Hedges
6.5 18,224.5
- 20,824.3
(922.1)
19,902.2
- (18,897.5)
- (18,897.5)
9.7 19,229.2
- 21,448.6
(1,514.1)
1.5 19,934.5
- (19,283.1)
- (19,283.1)
11.2 19,880.6
B. MURLI
General Counsel
&
Company Secretary
at 100/101, World Trade Centre,
ndian Companies Act and its equity
ss which incorporates product groups viz.
onfectionery.
y in all material aspects with the Indian

nt provisions of the Act, as applicable.
ost convention except for certain class of

are measured at fair value. The accounting
ncial year for the purpose of preparation of

any Law Board has allowed.
mpany’s functional currency.
en rounded-off to one decimal place unless
t classification of assets and liabilities. This is

alisation in cash and cash equivalents.
Operations as an additional information in

s & Tax less Other Income and adding
onsibility Expense.
tes and assumptions that affects the

sed on historical experience and various
m these estimates. These estimates and
sed on historical experience and various
m these estimates. These estimates and
y, plant and equipment (Refer note 4),
benefit obligations (Refer Note 36),
red tax assets/liabilities (Refer Note 40).
uary 2022.
ured at the price charged to the customer

nsumer, when it is probable that the
d with the respective customers.
entives when there is reasonable

he grant. These are recognized in the
ment of profit and loss on a systematic basis

loss on fulfillment of the underlying
ng materials and other supplies held for use

ll be included are expected to be sold
ws:
hased for resale) : Weighted
e of production
n System etc. for eligible employees and
n the actuarial valuation carried out by an

actuarial assumptions take into account the
d on actuarial valuation carried out by an
an appropriate investment product of an
efits. This investment will earn interest and
overable from the investment product would
e 3 of the financial statements.
statement of profit and loss as employee
liabilities/plan assets arising from changes
e and are included in retained earnings in
atement of profit and loss on the basis of an

are recognised in full in the statement of
ofit and loss on an undiscounted, accrual
n-tradable units with the right to obtain

the plan is initially measured at the fair
e outstanding units at each balance sheet
ement is recognised in the statement of
d impairment losses, if any. Cost is inclusive

the assets to their working condition for
e disclosed as “Capital work-in-progress”.

and equipment is recognised in the
to the Companies Act, 2013. Accordingly,

s including components thereof. Useful
d computed basis useful lives of fixed assets
s including components thereof. Useful
d computed basis useful lives of fixed assets
r there is any indication of impairment. For
entifiable cash flows (cash generating unit).
ment /cash generating unit to which the
h generating unit exceeds its recoverable
ue in use, the estimated future cash flows
he impairment losses recognised for the

t of an asset due to reversal of an
en determined (net of depreciation) had no
ncial Instruments’. Refer accounting policy
y leases land and buildings primarly for
s, or contains a lease if the contract conveys
corresponding lease liability for all lease
ability adjusted for any lease payments

ntives. They are subsequently measured at
rom the commencement date on a straight-
ments are discounted using the interest rate

bility is subsequently remeasured by
reflect the lease payments made. A lease
ange in an index or rate used to determine
ents are classified as financing cash flows.

f lease for certain short – term (less than or
sing the exchange rate at the date of
rted using the closing exchange rate as on
m rates at which these were initially

in the period in which they arise.
d legal aspects of the matter involved, in

Tax. Provisions are recognised when the
past event, for which it is probable that a
he timing of outflow of resources is
ounted to their present value.
obligation that may, but probably will not
f which likelihood of outflow of resources is
of income that may never be accrued/
pment which take substantial period of

her borrowing costs are charged to the
tual provisions of the instrument. All

tion to financial assets and financial
e on initial recognition. Transaction costs in
VTPL), are charged to the statement of
ssified as follows:
hold the asset in order to collect
ured at amortised cost less impairments, if
e recognised in the statement of profit and
ssified as follows:
hold the asset in order to collect
ured at amortised cost less impairments, if
e recognised in the statement of profit and
ithin a business model whose objective is
f principal and interest and by selling the
es in fair value are recognized in the other
I is reclassified to the statement of profit
statement of profit and loss.
above categories are subsequently
ognised in the statement of profit and loss.
ompany has elected irrevocable option to

nt basis. Pursuant to such irrevocable option,
profit and loss.
Interest expense calculated using EIR
held for trading, or is designated as such

e statement of profit and loss.
ncial asset expire, or it transfers the rights
ncome (FVOCI) are assessed for possible

t of the counterparty, existing market
increase in credit risk since initial
pproach as per Ind AS 109 – Financial

ts over the lifetime of the asset.
hes a hedge relationship between such

gh a formal documentation at the inception
of recognised assets and liabilities (fair
t the inception and on an ongoing basis.
orward contract is designated as a cash
omprehensive income and accumulated in
bsequently reclassified to the statement
the change in the fair value of the
nt of profit and loss.
e or market price. If the fair value is not

opriate in the circumstances and for which
f unobservable inputs.
statement of profit and loss, except when it

ty. In such cases, the income tax expense is
ncome tax charge is calculated on the basis
eriodically evaluates positions taken in
ation or under dispute with authorities and
ber 2021 and,

n of fiscal accounts (Assessment Year 2021-
fference between the carrying amount of
nd are capable of reversal in one or more
able profits will be available against which
shareholders by the weighted average

per share, the net profit for the period
ng the period are adjusted for the effects of
nces in transit, demand deposits with

s that are readily convertible into cash
as a component of cash and cash equivalents
nces in transit, demand deposits with
s that are readily convertible into cash
as a component of cash and cash equivalents
ents by the Board of Directors on 17
ments of Ind AS 10 - Events after the
hedule III to the Companies Act, 2013 to

e to the company from the financial year
ctive date of the code and complete clarity

d and accounted for post notification of the
e been suitably designed to be compliant
s is amended and replaced by ‘Future Ready

d a Defined Contribution Scheme for future
n determined based on actuarial valuation
mpany in an appropriate investment
rchase pension annuities from the
nized as having ‘reimbursement rights’ as
red to an Insurance company and future

aggregate :
der the ‘Future Ready Plan’ and the Defined
wards pensioners as on 1 December 2021
FINANCIAL STATEMENTS
4 - Property, Plant and Equipment
(` in million)
ORTISATION NET
CARRYING
VALUE
As at 31 As at 31
Decemb December
er 2021
2021
- 175.2
2,326.0 9,041.4
15,761.7 16,896.1
623.0 28.4
145.9 84.9
672.0 301.9
23.5 1.5
19,552.1 26,529.4
ORTISATION NET
CARRYING
VALUE
As at 31 As at 31
Decemb December
er 2020
2020
- 174.1
1,947.4 7,326.2
13,414.2 11,779.5
661.2 32.5
138.3 64.6
592.7 300.1
21.0 3.0
16,774.8 19,680.0
FINANCIAL STATEMENTS
5 - Right of Use Assets
(` in million)
MORTISATION NET
CARRYING
VALUE
As at As at
31 31
December December
2021 2021
79.8 1,160.7
1,505.7 1,966.1
7.0 204.1
84.5 79.4
1,677.0 3,410.3
(` in million)
MORTISATION NET
CARRYING
VALUE
As at As at
31 31
December December
2020 2020
66.6 1,173.9
1,264.5 864.8
82.7 75.4
1,413.8 2,114.1
owards expenses related to short term
(` in million)
7,219.5
188.8
7,408.3
8,054.7
0.1
383.8
81.6
465.4
465.5
1,115.9
44.3
369.3
22.2
31.2
0.9
1,583.8
1,384.6
-
-
1,384.6
199.2
-
339.0
554.6
893.6
er the defined benefit obligations under the
5,220.2
654.1
1,931.1
5,216.8
357.7
784.9
14,164.8
he statement of profit and loss on account
7,229.4
-
7,229.4
7,229.4
7,229.4
(` in million)
1,649.3
35.4
1,684.7
(35.4)
1,649.3
317.8
17,217.4
12.8
17,548.0
150.7
150.7
0.3
20.8
111.1
131.9
8.5
(8.5) -
132.2
(` in million)
158.6
48.2
365.8
17.0
589.6
-
161.6
13.2
212.0
386.8
35.4
(35.4) -
386.8
ver the defined benefit obligations under
ntire minority stake of 19.98% in Sahyadri

nd at the end of the year
96,415,716 964.2
- -
96,415,716 964.2
33,051,399
27,463,680
No. of % of
shares holding
33,051,399 34.28
27,463,680 28.48
(` in million)
8,374.3
11,175.2
9.7
(330.0)
19,229.2
of company’s profits to meet the future
AT) to general reserve pursuant to the
the Companies Act, 2013.
and its Members under Section 230 of the
ereunder, which inter alia envisages the
ained Earnings. The Scheme of Arrangement,
such other class of persons as may be
lhi Bench and such other approvals as are
m the Securities and Exchange Board of India
no adverse observation” on the said Scheme
equent to approval of the Scheme by the
with the Hon’ble NCLT for the sanction of
till date, less transfer to general reserves,
e its risks associated with foreign

erve represents the cumulative changes in
atement of profit and loss upon occurrence
ulative gains and losses arising on fair

irrevocable option.
(` in million)
204.2
113.0
317.2
g from year 2021.
(` in million)
21,808.2
1,683.0 23,491.2
9,191.5
32,682.7
s and ceremonial gifts.
220.9
220.9
7.8
23.4
31.2
g from year 2021.
1,541.3
1,926.4
0.9
150.7
61.3
7.0
3,687.6
(` in million)
425.4
395.2 820.6
239.0
1,059.6
and ceremonial gifts.
500.6
526.5
463.0
1,490.1
366.5
232.2
598.7
930.1
508.0
20.4
1,458.5
(` in million)
47,127.4
8,415.0
55,542.4
TOCK-IN-TRADE
5,199.0
1,233.8
379.5
6,812.3
5,216.8
1,931.1
357.7
7,505.6
(693.3)
Year ended 31
December 2020
(` in million)
13,148.9
627.1
423.5
810.0
15,009.5
1,376.4
85.0
180.4
1,641.8
Year ended 31 December
2020
(` in million)
5,805.5
7,635.5
3,136.8
5,935.0
1,187.8
957.0
32.5
466.2
482.3
549.3
99.7
593.7
232.6
269.7
155.6
145.7
62.5
(49.0)
65.1
1,369.3
29,132.8
Year ended
31 December 2020
Quantity Amount
(MT) (` in million)
138,402 61,487.8
281,392 39,108.2
20,772 14,762.5
50,358 17,543.1
490,924 132,901.6
Year ended
31-December-2020
(` in million)
136,929.7
4,028.1
132,901.6
nsion System etc. for eligible employees.

ompany has recognised ` 726.0 million
ontribution to these funds.
made to the Nestlé India Limited
nterest declared by the Central Government
is made good by the Company. The
ernance of the plan and to act in accordance
nvestment followed by the Trust is in
ber 2021 as per the unaudited financial
ious securities in accordance with the rules
der defined benefit plans.

ile in employment or on termination of
kes contributions to the Nestlé India Limited
e responsible for the overall governance of
cribed under the law. Pattern of investment
dia. The Company aims to keep annual
ets and liabilities.
an and a funded Defined benefit Pension
such as interest rate risk, inflation risk, price
nt product of an Insurance company to

plan match with the amounts recoverable
n annuities from the Insurance company for
k etc. Also, refer note 3 to the financial
million) Gratuity
Pension
Scheme Scheme
Funded Unfunded
Plan Plan
1,938.8 19,106.5
- -
123.3 814.2
- -
- -
127.1 1,274.2
138.8 1,220.5
(111.4) (455.9)
- -
- -
2,216.6 21,959.5
1,812.5 -
118.6 -
- -
122.8 -
(111.4) -
1,942.5 -
274.1 21,959.5
274.1 21,534.1
- 425.4
- -
- -
- -
- -
- -
612.7 -
47.5 -
930.5 -
219.3 -
131.2 -
million) Gratuity
Pension
Scheme Scheme
Funded Unfunded
Plan Plan
1.3 -
1,942.5 -
121.8 787.8
- -
127.1 1,274.2
(118.6) -
130.3 2,062.0
48.0 1,756.2
- (87.5)
90.8 (448.2)
(122.8) -
16.0 1,220.5
item also includes `14.2 million towards
revious year ` 1376.4 million). This includes `

Previous year ` 93.7 million) towards
31 December 2020
Gratuity Pension
Scheme Scheme
Funded Unfunded
Plan Plan
6.75 6.75
7.7 to 11.3 7.7 to 11.3
5.5 6.5
-3.25
31-December-2020
Pension Scheme
Gratuity Unfunded Plan
Scheme
Funded Plan
Indian Assured Lives Mortality

(modified 2006-
08) Ultimate rates
Mortality for annuitants - LIC (1996-

98) Ultimate rates with flat 10%
mortality improvement and
additional 0.25%
p.a. future mortality
improvement
formance, promotion and other relevant

ccount the requirements of the relevant Ind
31 December 2020 (` in million)

Gratuity Pension
Scheme Scheme
21,959.5
20,041.5
24,151.2
23,124.6
20,918.6
23,055.3
20,954.8
22,352.7
21,561.2
ue of the defined benefit obligation.

ons constant.
31 December 2020
(` in million)
Gratuity Scheme
Pension Scheme
unded Plan Unfunded Plan
12 years 19.8 years

300.0 -
of Nestlé S.A., whereby select employees

Stock Units (RSU)/ Performance Share Units
esting Nestlé S.A. determines, whether
The Company has to pay Nestlé S.A. an
31-December-2020
(` in
million)393.5
412.5
423.5
31-December-2020
77,269
45,299
51,649
70,919
8,631
or various contingencies resulting mainly

ent judgement. The Company has also
ttlement of certain litigations and settlement
December 2020 (` in million)
ons for contingencies

Others Total
982.0 8,921.8
298.7 1,088.9
7.4) (18.3) (580.2)
2.2 1,262.4 9,430.5
claims arising out of litigations /

ncome Tax, Value Added Tax, Sales and
dispute involving judgements and
th regard to these matters depend on the
ered under free replacement warranty on

gement. The timing and probability of
nt decision/ conclusion by the Management.
31 December 2020
(` in million)
463.0
464.0
464.2
460.2
25.6
4.0
Year ended 31
December 2020
(` in million)
7,634.2
(330.6)
7,303.6
(307.1)
(3.0)
(310.1)
(311.2)
1.1
7,327.1
(333.6)
6,993.5
s with Profit before tax (PBT)
Year ended
31-December-2020
(` in million)
28,127.9
25.17%
7,079.2
138.0
219.4
(133.0)
-
7,303.6
(` in million)
Recognis Closing
ed
in other balanc
comprehensive e
income
- 1,074.8
4.9 416.0
- 34.1
- 25.6
- 48.0
(0.5) 1.5
4.4 1,600.0
- 1,341.6
- 1,341.6
4.4 258.4
(` in million)
Recognised Closing
in other balance
comprehensive
income
194.6) - 1,384.6
194.6) - 1,384.6
- 1,115.9
4.0 369.3
- 44.3
- 22.2
- 31.2
(1.0) 0.9
3.0 1,583.9
(3.0) (199.2)
As at 31 December
2020
(` in million)
7,219.5
7,229.4
-
1,649.3
17,548.0
150.7
597.7
541.4
34,936.0
188.8
188.8
48.2
48.2
35,173.0
348.4
1,126.5
15,165.8
2,924.3
3,680.6
23,245.6
7.0
7.0
23,252.6
As at 31 December
2020
(` in million)
15,284.1
188.8
48.2
7.0
erarchy: Level 1: The fair value of financial
ntical assets or liabilities.
e determined using valuation techniques
luations using inputs that are not based on

s is determined using discounted cash flow
credit risk, market risk. This note presents
associated with financial liabilities that are

ensure that sufficient liquidity is
dity risk by planning the investments in a
ness requirements within a reasonable
aining committed credit lines with various
ontractually agreed undiscounted cash
(` in million)
iscounted Amount
Beyond Total
year
456.1 527.3
2,569.6 3,147.1
- 17,348.5
- 1,548.1
- 3,563.6
- 22.7
3,025.7 26,157.3
531.0 562.2
772.1 1,270.8
- 15,165.8
- 2,924.3
- 3,680.6
- 7.0
1,303.1 23,610.7
arty fails to meet its contractual

risk evaluation:
anks etc. Funds are invested in accordance

and post tax returns. Company avoids the
ting profile and sound financial position.
basis. Based on historical experience and
ished policy with regard to credit limits,

rade receivables based on a simplified
he probability of defaults over the lifetime
geographical spread, trade channels,
31-December-2020
(` in million)
33.9
1.5
35.4
ence and credit profiles of counterparties,
nancial assets is their carrying values as at
may fluctuate because of changes in

vestments are primarily in fixed rate
e change in the market price. The Company

estments are not significant as at the
fluctuate due to change in the foreign

foreign currency. Foreign exchange risks
ent. The Company enters into forward
TEMENTS
nge rates is as under:
(` in million)
at
31 December 2020
dged (1)
Unhedged
1,586.5 -
-2.2
-28.2
477.1 239.1
309.2 2,374.7
174.6 47.4
-99.9
-694.9
-25.5
-106.4
ng transactions and firm commitments or highly
maining unhedged at the year end is as
(` in million)
As at
31 December 2020
Gain on Loss on
appreciation depreciation
12.0 (12.0)
118.6 (118.6)
2.4 (2.4)
3.6 (3.6)
34.7 (34.7)
1.3 (1.3)
5.3 (5.3)
entered into are for the purpose of hedging

y probable forecast transactions.
31 December 2020
(` in million)
48.2
7.0
2,596.8
6.5
82.5
78.2
1.1
9.7
support long term business growth and

s through dividend is monitored as per the
Year ended 31 December
2020
(` in million)
13.0
3.6
2.7
0.5
-
0.4
0.9
21.1
0.2
0.1
0.3
As at 31 December
2020
(` in million)
11.7
3,142.3
efinition of wages under the Provident Fund

ate from which it applies.The Company will
Confectionery Factory svitoch”
d transactions
& Control upto 31 December 2019 and CFO

emkens, Executive Director-Technical (upto
nt Fund Trust Nestlé India Limited
and are at arm’s length.
Year ended 31
December 2020
(` in million)
6,478.1
5,382.9
412.5
Year ended 31
December 2020
(` in million)
-
1,918.4
1,107.9
928.0
-
274.2
0.3
262.4
213.0
54.1
164.8
260.5
-
85.4
120.2
5,928.5
6.5
81.2
117.5
54.2
53.8
118.6
92.2
23.8
-
22.5
75.4
50.6
Year ended 31
December 2020
(` in million)
852.5
350.0
350.0
13.2
123.5
-
241.9
5.4
86.2
12.4
260.8
-
As at 30 December
2020
(` in million)
744.4
1,049.6
41.9
59.8
22.9
mpany as a whole, the
ctivity falls within a single operating

ood business incorporates product groups
d Confectionery.
Year ended 31
December 2020
(` in million)
126,427.7
6,473.9
132,901.6
dia.
006
e Micro Small Medium Enterprise
mpany, the following are the details:
31 December 2020
(` in million)
1,139.9
-
-
-
-
-
Year ended 31
December 2020
(` in million)
13,016.1
5,881.4
g to ` 6,267.0 million for the year 2021 after

l General Meeting of the Company and
te in line with Ind AS 10 on ‘Events after the
B. MURLI
General Counsel &
Company Secretary
ED 31 DECEMBER 2021
ST
s followed best practices of Corporate

é Group, which define the standard of
nd Leadership Principles” and “The Nestlé
e and market the Company’s products in
mployees, business partners and the
reflection of the professionalism, conduct
ements, the Company endeavours to ensure
eetings and the last Annual General

member or chairperson, name of
orship
:
Category of Directorship and name of

ard the other Listed Companies as
31 December 2021 Member

st
dependent Director
dependent Director
mer Electricals Limited

ance
dependent Director
ancial Services Limited
tries Limited
e Limited
xecutive Director
anoria Chemicals and Industries Limited

n-Independent Non-Executive
rector
udlow Jute & Specialties Limited
dependent Director
K Paper Limited
ecutive Director
ramal Enterprises Limited
nts, excluding Companies under Section 8 of the Companies Act, 2013.B Only covers Membership/Chairpersonship of Audit Committee and Stakeh
Rajya P. R. Swati
Vardhan Ramesh A.
Kanoria Piramal
Y
Y
Y Y Y
Y Y
Y Y
Y Y
Y Y
Y Y
Y
Y
Y
Y Y Y
Y Y Y
Y Y Y
Conduct’ (“the Code”). The Code is available on the website of the Company at https://www.nestle.in/investors/policies.The Chairman and Managing Di
party transactions and such other matters as
Vardhan Kanoria and Ms. Roopa Kudva as
ancially literate and have related financial
ary acts as the Secretary to the Audit
puty Company Secretary are permanent
uthorized representatives of Statutory
s are invited to the meeting of the Audit
24 September 2021, 19 October 2021

th th
meetings through video conferencing/ other

leave of absence. The maximum gap
e Audit Committee had a meeting with the
rs the areas as contemplated under

erred by the Board. The role includes
director and recommending to the Board of
nnel and other employees; formulation of
f Directors; and identification of persons
e with the criteria laid down, and
mendation on extension or continuation of
s of all remuneration, in whatever form,
han Kanoria as Chairman, Mr. P. R. Ramesh

cts as the Secretary to the Nomination and
y Company Secretary are permanent
9 April 2021, 27 July 2021 and 18 October
th th th
cing/ other audio-visual means except the
f the Board, its Committees and the

d peer evaluation of the Directors. The
Committees such as its composition and
ructure etc. The performance of individual
duct, independent judgement, and
irectors and in the evaluation of the
and provided analysis of the results of the
as a composition that is diverse in
uctive debates. The discussion quality is
ement and their teams provides an insight
fessionally and smoothly and besides the
sed in the respective Board Committees. The
tion and evaluate the proposals presented
r-alia, on the on-boarding process of new
ration of Directors for the year 2021
(` in Millions)
pany’s Commission and
33.21 188.07
11.35 80.70
9.66 73.03
2.00 @
2.83
2.00 @
3.50
2.00 @
3.30
2.00 @
3.60
2.00 @
2.65
otice 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.@
estor grievances, transmission/
ares, exchange of new design share
the Stakeholders Relationship Committee
ng Regulations.
apurkar, Independent Non-Executive
d Steven McDaniel, Executive Director-
e Deputy Company Secretary is a permanent
ril 2021, 27 July 2021 and 18 October 2021.
th th
er audio-visual means.
ave been resolved to the satisfaction of the
1 of the Listing Regulations and includes

eriodically as it may deem fit, in addition to
t Committee has, inter-alia, formulated a
ppointed as members of the Risk

ve Director- Technical, ceased to be the
Risk Management Committee comprised
McDaniel, as Members. The Company
al and Deputy Company Secretary are
September 2021 and 18 October 2021. All

th
conferencing/ other audio-visual means

21.
ty and other related matters as may be

the Act read with Companies (Corporate
and recommending to the Board of
e Company, as per Schedule VII to the Act;
mmittee has formulated an Annual Action
mal Independent Non- Executive Director,
irman
and CFO, as Members. The Company
Secretary is permanent invitee to the
tober 2021. All the members attended
d on 27 July 2021 and Dr. Swati A. Piramal
th
Mr. Suresh Narayanan acted as Chairperson

video conferencing/ other audio-visual
is meeting.
is meeting.
Kanoria as an Independent Non-

five consecutive years
posed to be conducted through postal ballot.MEANS OF COMMUNICATIONThe quarterly results of the Company were widely published in leading ne
r Audio-Visual Means (VC/ OAVM facility)
Delhi-110001]
yearly Results : Third/ Fourth week of
ard of Directors and subject to the approval

April 2022 (payment date).
- each, were paid on and from 19 May 2021
th
i–400001. The Company’s Stock Code is
Low (`)
17,361.95
17,666.45
19,320.35
18,611.00
18,569.00
18,606.30
22.
t trading day of the month)Base is considered to be 100 as at 31st December 2020[Source: www.bseindia.com]Registrar and Share Transfer AgentsM/s. A
Percentage of Total
Shares
62.76
37.24
3.78
0.14
12.35
0.06
3.91
0.00
13.31
0.01
1.97
0.00
0.83
0.51
0.10
0.23
0.03
37.24
100.00
Percentage of total
Shares
4.73
1.73
1.49
0.94
0.68
0.58
1.92
87.93
100.00
December 2021.Outstanding ADRs/ GDRs/ Warrants or any convertible instruments, conversion date and likely impact on equityNo GDRs/ ADRs/ Warra
y authorised, recorded, and reported, apart from safeguarding its assets. The internal control system is supplemented by well-documented policies, guide
S R & Co. LLP, Chartered Accountants, and
Directors, which are mandatorily required to
essal) Act, 2013 (“POSH”), the Company has

provisions relating to the constitution of
xternal member who has extensive
vestigated and resolved as per the
nd clauses (b) to (i) of sub – regulation (2) of
nce with all applicable requirements of
tion 27 of the Listing Regulations are as
quarterly financial results are published in

n audit report: The Company already
atements; (d) Reporting of Internal
e & Control and CFO with functional
ayanan
naging Director
inal Dividend. Accordingly, the relevant
ate Governance Report for the year ended
isual Means (VC/ OAVM facility)
sults : Third/ Fourth week of July 2022
tors and subject to the approval of the

2 (payment date).
anan
naging Director
Annexure - I
ange Board of India
vant documents’)
9PLC003786 and having its registered
ompany (‘the Board’) for the Financial
s, forms and returns maintained by the
(3) read with Schedule V Para C Clause 10(i)
ation to include non-debarment by
ordance with the provisions of the Act.

ople imposed by the Government, for the
ormation made available to us by the
management of the Company. Our
dequate (including Directors Identification

edge and according to the explanations
irectors on the Board of the Company, as
g appointed or continuing as Directors of
ity.
Date of Cessation
-
-
-
-
-
-
-
tiveness with which the management has
ce Report of the Financial Year ended 31 st
Partner
FCS : 4206
quirements under SEBI (Listing
ndum to the engagement letter dated 29 th
of conditions of Corporate Governance by

ns 17-27, clause (b) to (i) of Regulation 46 (2)
ons and Disclosure Requirements)
ock exchange.
ons
ations is the responsibility of the
and documents. This responsibility includes
nce with the conditions of Corporate
y for ensuring the compliance of the

cial statements of the Company.
able assurance whether the Company has
ended 31 December 2021.
st
pany in accordance with the Guidance

fication of Corporate Governance both
purpose of this certificate. The Guidance
QC) 1, Quality Control for Firms that

ces Engagements.
e certify that the Company has complied

mpany nor the efficiency or effectiveness
of enabling the Company to comply with the

rpose. Accordingly, we do not accept or
ficate is shown or into whose hands it may
ONSIBILITY ACTIVITIES1. Brief outline on CSR Policy of the CompanyDriven by the purpose - ‘We unlock the power of food to enhance quality of
Number of
meetings of CSR
Committee
attended during
the year 1
2
3
R projects approved by the board
ve demonstrable outcomes having a

programmes; plastic waste management
ood vendors and the initiative of village
s with credible NGOs, implementing
pandemic across various states in India.
nts near five of its factories in Punjab
ngud).
ctorsandofficers• CSR Policy and Projects: https://www.nestle.in/investors/policies4 Provide the details of Impact assessment of CSR projects carrie
d to be set- off for the

any (in ` Million)
527.5 million
ous financial years: Nil
ny fund specified under

nd proviso to section
Date of transfer
r:
(11)
Mode of
Implementation –
Through
Implementing
Agency
Name CSR
Registrat
ion
number
MAMTA- CSR000
Health 01978
Institute for
Mother and
Child
Magic Bus CSR000

India 01330
Foundation
Punjab CSR000
Agricultural 04505
University, CSR000
CSK 14404
Himachal CSR000
Pradesh 02281
Agriculture CSR000
University, 16598
Gujarat
University,
University of
Agricultural
Sciences
Enable CSR000
Health 02965
Society
Mitra CSR000
Technology 00698
foundation
(i-volunteer)
Stree Mukti CSR000

Sanghatana 01126
Nidan CSR000
02619
S.M. Sehgal CSR000

Foundation 00262
nancial year:
(8)
Mode of implementation
– Through implementing
agency
Name CSR
registration
number
Magic Bus CSR00001330

India
Foundation
India
Foundation
Nidan CSR00002619
Akshaya Patra CSR00000286
Charities Aid CSR00001692
Foundation CSR00001441
BOSCONET CSR00002619
NIDAN CSR00007800
INDIAN CSR00000158
JAYCEES CSR00005510
CHARITABLE CSR00004844
TRUST CSR00001126
Save the CSR00003577
Children India
Indian
Association for
the Blind
Cheshire
Disability Trust
Stree Mukti
Sanghatana
CREDIT I
Amount (in `
Million)527.5
534
6.5
Nil
Nil*
und specified Amount

r section remaining to
be spent in
Date of succeeding
transfer. financial
years. (in `
Million)
e preceding financial year(s):
(8) (9)
ulative amount Status of the
nt at the end of project -
rting Financial Completed
r. (in ` Million) /Ongoing.
154.1 Ongoing
28.9 Ongoing
42.8 Ongoing
17.0 Ongoing
21.0 Ongoing
17.1 Ongoing
11.6 Ongoing
10 Ongoing
302.5
the asset so created or acquired
capital asset is registered, their
address and location of the capital
erage net profit as per section
behalf of the Board of Directors

h Narayanan Chairman and Managing
or
Gurugram
NSIBILITY REPORT
mba Lane,
er various codes as specified
ITC Code
0402, 1901
1902, 2103
2101
ormation page of the Annual
and UAE
hes, Head office and nation-
verage profit after tax of the

al Report of CSR Activities,
nnual Report of CSR Activities,
holders such as suppliers,

BR initiatives of the Company
the Company. With numerous
any’s different locations and
percentage of such initiatives.
Details
2504
David Steven McDaniel
utive Director-Finance & Control
CFO
Applicable
anjay Khajuria
tor- Corporate Affairs
124-3940000
tingsharedvalue.in@in.nestle.com
P6 P7 P8 P9
Y Y Y Y
Y Y Y Y
Y Y Y Y
Y Y Y Y
Y Y Y Y
Y Y Y Y
Y Y Y Y
Y Y Y Y
Y Y Y Y
N N N N
ick up to 2 Not Applicable
ually assess the BR performance at
rt of the Annual Report, which is available on the website of the Company.It is available at:https://www.nestle.in/investors/stockandfinancials/annualrepo
d as per local requirements to

ny? Yes/ No. Does it extend to the
tion covering the Company and all its

f the Company, are Nestlé Corporate
ndard.
and what percentage was
50 words or so.
bery and corruption. Both the complaints
the year 2021.
r environmental concerns, risks
ies - Milk Products and Nutrition, Beverages,

ly Positioned Products (PPP) fortified with
g others:
on RDA* for adults and 15% Iron RDA* for
A* for adults and 16% Iron RDA* for
he consumption of nutrients like vitamin

d at household level to help in home
sy to use format helps (per serve of 2g)
ances for Adult Sedentary Male as per
assed through a unique flash heat

DA* of Vitamin A & 9% RDA* of Vitamin D.
mended daily allowance for Indians, ICMR,
energy, water, raw material etc.)
s year throughout the value chain?
the previous year?

nable use of natural resources in
ucing waste to zero and full recovery of
of energy by around 43%, water usage by
ssions by 57%.
transportation)? If yes, what
about 50 words or so.
according to the non- negotiable
siness Integrity, Human Rights (labour
duction processes, services provision and
rd, apply to all suppliers.
small producers, including
o improve their capacity and
Company touches the lives of over

ddition to collecting milk and implementing
pany supports the development of milk
ding veterinary services, medicines at no
D-19, the Company continued to procure
utionary measures are followed during milk
in terms of quality, productivity and

ation for better coffee prices. The NESCAFÉ
ng to the planet, with the objective of

uring the COVID-19 pandemic, farmer
stlé agronomists. The Company in
ucted virtual trainings on intercropping
rough trainings, technical assistance,
ward Integration Programs” (BIP) in place
cludes field extension support for
to farmer fields and data gathering. This
ping responsibly sourced supply chains of
pplier model to create sustainable local

ating a wider, more flexible supply base. In
pliers/ supplier locations and localized 8
meet the desired quality/ regulatory norms
at is the percentage of recycling of

reof, in about 50 words or so.
e management projects
ping responsibly sourced supply chains of
pplier model to create sustainable local
ating a wider, more flexible supply base. In
pliers/ supplier locations and localized 8
meet the desired quality/ regulatory norms
at is the percentage of recycling of

reof, in about 50 words or so.
e management projects
ct, segregate and recycle/recover waste in

es’ 2016”, as amended in 2018 but also
h consumer awareness. All the packaging
tion logo is placed on the plastic based
able:
ecodesign and value engineering. The
et.
100% recycled paper in shippers. The
Chocolates.
responsibly managed approximate 23,600
ducers’ Responsibility.
ons in 8 factories in India
of permanent employees are
o child labour, forced labour,

exual harassment are pending
1
part of their induction
y’s business operations have evolved,

inability. The Company builds trust through
ernal as integral to its business.
lders?Yes.3. Are there any special initiatives taken by the Company to engage with the disadvantaged, vulnerable and marginalized stakeholders?The C
is undertaking various initiatives to reduce Green House Gas (GHG) emissions. In the year 2021, total 12 Energy reduction projects were initiated in Nes
ursuit of the policy related to Principle 8? If yes detailsthereof.Yes. Your Company works in the areas of nutrition awareness, rural development initiative
www.nestle.com/asset-library/documents/library/documents/corporate_governance/corporate-business-principles-en.pdf3. https://www.nestle.com/csv/w
e/nestle-policy-transparent- interactions-with-public-authorities.pdf2. http://www.nestle.com/aboutus/businessprinciples/report-your-concerns3. https
anan
ging Director
ORT
REPORT
f the Companies
s, 2014]
ence to good corporate practices by Nestlé

2021. Secretarial Audit was conducted in a
ces and expressing our opinion thereon.
d other records maintained by the
entatives during the conduct of Secretarial
nancial Year ended 31 Decemberst
er Board-processes and compliance-
ntained by the Company for the Financial
o the extent of Foreign Direct

he extent of Overseas Direct
s during the financial year under
ard of India Act, 1992 (‘SEBI Act’):

ulations, 2011;
tions, 2018 – Not
ons, 2014 (up to 12 August 2021) and

th
ons, 2021 (with effect from 13 August

th
rs/ employees under the said
ns, 2008 (up to 16 August 2021) – Not

th
review;
ts) Regulations, 1993 regarding the
s Registrar to an Issue and Share
June 2021) and The Securities and

– Not applicable as the Company
review;
ts) Regulations, 1993 regarding the
s Registrar to an Issue and Share
June 2021) and The Securities and

– Not applicable as the Company
pplicable as the Company has not

under review; and
021 (with effect from 16 August 2021)- Not
th
the financial year under review

pplicable to the Company:
nder;
on) Act, 1992 and rules thereunder (Local
he following:
tings (SS-2) issued by the Institute of
s, 2015 and the Listing Agreement entered

tions, Guidelines, Standards etc. mentioned
ors, Non-Executive Directors, Independent

ors during the period under review;
were sent at least seven days in advance
on the agenda items before the meeting and
requisite majority.
basis of the Compliance Certificate(s) issued
inion that the management has adequate
all applicable laws, rules, regulations and
rs in pursuance of the above referred laws,

.
an integral part of this report.
Partner
206 | COP No.: 1774
Partner
206 | COP No.: 1774
o be read along with this letter.
r systems to ensure compliance with the

uate and operate effectively.
by the Company with respect to secretarial

nd appropriate for us to provide a basis for
es and regulations and happening of events
o us through electronic platform by the

any in place, for the purpose of issuing this
fficacy or effectiveness with which the

f Accounts of the Company.
Partner
206 | COP No.: 1774
with Rule 8 of the Companies
December 2021
ng-term sustainability, your Company

nment. Your Company ensures this with a
nability inspires and guides everything the
es at all factories and offices. These include
g eco-friendly products.
ation of energy in all the areas of
eneration. Within the Company, there are
urces and reducing water, energy & CO 2
any which will result in substantial

ption) and should be realized in next two to
n evaporators and vacuum ovens;
n, and air conditioning operations.
-alia, resulted in reduction in water
lt in savings of approximately 65,100 m 3
s. One of the key initiatives contributing to

nology Reverse Osmosis (RO) plant.
otection of the environment. The
y Performance Indicators (‘KPI’) which
duct manufacturing norms reflect the

ered products unfit for further use or
s including mismatch of demand and supply,

waste is either reused, recycled or co-
factory locations:
factory locations:
on and consequent impact on the
fficiencies, minimizing consumption of

.
as reduced, the usage of energy by
fic direct greenhouse gas emissions by
sumption are: Energy initiatives at
ons:
newable energy projects that contributed
advantage of drawing from the extensive

orts in R&D and in gaining industrial
ation of products for local conditions.
ntion.
innovate and renovate, manufacture high

nsequently, the consumers perceive the
duct development, faster introduction of

o offer better products at relatively
, at an annual outlay of around 1.6 billion
ose incurred for testing and modifying of
and, the Company absorbs and adapts the
and energy conservation are the major
ved on an ongoing basis from the

o remain competitive and offer high quality
nce Agreement with the collaborators and
ctured/ sold by the Company, on a
new export market for products
foreign exchange earnings of ` 3,997.5
ees, etc. and remittances made to non-
anan
ging Director
3 and Rule 5(1) of Companies
ees of the Company for the financial
Ratio to median
remuneration
of the employees*
135 : 1
58 : 1
52 : 1
ngs and commission, the required details are not
ompany Secretary or Manager, if any, in the
% increase in
remuneration
9.4
Not Comparable
Not Comparable
-4.7
nding Board/ Committee meetings and commission, the
required details are not applicable.
ance & Control and CFO with effect from 1 March 2020.
st
Director – Technical with effect from 1 November 2020.

st
on is on account of lower value of long-term incentives.

on of employees in the financial year: 10.8%.
mployees on the rolls of the Company: 7,910.
personnel in the last financial year and its
ut if there are any exceptional circumstances
yees other than the managerial personnel
ases are a function of the Company’s market
survey the Company undertakes annually.
as the results of the benchmarking exercise.
e Component is a critical element of Total
targets. Employees including Key Managerial
both Company and Individual Performance.
er the Remuneration Policy of the Company.
h Narayanan
d Managing Director
y that wants it more. Adjustments we've always
u're not,
A INCOME
Domestic Sales
Export Sales
Sale of products
Other operating revenues
Revenue from operations
Other Income
Total Income
B EXPENSES
i Cost of materials consumed
ii Purchases of stock-in-trade
iii Changes in inventories of finished goods, work-in- progress and stock-in-trade
iv Employee benefits expense
v Finance costs (including interest cost on employee benefit plans)
vi Depreciation and Amortisation
vii Other expenses
viii Impairment loss on property, plant and equipment
ix Net provision for contingencies
x Corporate social responsibility expense
Total Expenses
C PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX
D Exceptional
(A-B) items
E PROFIT BEFORE TAX (C-D)
F Tax expense
Current tax
Deferred tax
G PROFIT AFTER TAX (E-F)
35
28
29
30
31
32
33
4,5
34
4
39
3,36
40
40
NOTES
139,9
6,3
7,4
(
139,941.5
6,395.7
7,443.9
(54.8)
Year ended Year ended 31 December 2020
(` in million)
146,337.2
756.9
147,094.1
1,201.1
148,295.2
61,541.0
2,275.2
(627.0)
15,213.0
2,011.9
3,901.9
32,482.0
12.2
(251.7)
534.0
117,092.5
31,202.7
2,365.0
28,837.7
7,389.1
21,448.6
126,427.7
6,473.9
7,634.2
(330.6)
A INCOME
Notes
Domestic Sales
Export Sales 35
Sale of products 28
Other operating revenues
Revenue from operations 29
Other Income
Total Income
B EXPENSES 30
i Cost of materials consumed
ii Purchases of stock-in-trade 31
iii Changes in inventories of finished goods, work-in- progress and stock-in-trade 32
iv Employee benefits expense 33
v Finance costs (including interest cost on employee benefit plans) 4,5
vi Depreciation and Amortisation 34
vii Other expenses 4
viii Impairment loss on property, plant and equipment
ix Net provision for contingencies 39
x Corporate social responsibility expense
Total Expenses
C PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX 3,36
D Exceptional
(A-B) items
E PROFIT BEFORE TAX (C-D)
F Tax expense 40
Current tax 40
Deferred tax
G PROFIT AFTER TAX (E-F)
Year ended 31st Empty Year ended 31 December Empty
December 2021 (in 2020
Empty (In million)
millions)
139,941.5
6,395.7 126,427.7
146,337.2 6,473.9 132,901.6
756.9 598.7
147,094.1 133,500.3
1,201.1 1,458.5
148,295.2 134,958.8
61,541.0 55,542.4
2,275.2 1,890.0
(627.0) (693.3)
15,213.0 15,009.5
2,011.9 1,641.8
3,901.9 3,703.8
32,482.0 29,132.8
12.2 -
(251.7) 139.7
534.0 464.2
117,092.5 106,830.9
31,202.7 28,127.9
2,365.0 -
28,837.7 28,127.9
7,443.9
(54.8) 7,389.1 7,634.2 7,303.6
21,448.6 (330.6) 20,824.3
Empty

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Nestlé India Limited | Annual Report - 2021

Towards A Sustainable Future

The Board of Directors of Nestlé India Limited

Mr. Suresh Narayanan Dr. Swati A. Piramal Mr. R. V. Kanoria

Annexures to the Board’s Report

Nestlé India Limited | Annual Report - 2021

Towards A Sustainable Future

2006 2021 2006 2021

Reduced Water Usage Reduced Waste Water Generation

2006 2021 2006 2021

A Focus on Sustainable Operations

Initiated Waterways Lane

Delivery Vehicle Payload

Utilization 2021 9.01%

Nestlé India Continues To

Plastic Reduced in our Packaging since

Mono Material Packaging

Establishing Waste Management

Divert Waste from

Mussoorie Nainital Ponda

Dalhousie Mahabaleshwar Munnar

Focus on Impac t rather than st Providing Relief/easing the suffering of

*Picture taken pre-pandemi

Helping Adolescents Live Healthier

Creating Access to Clean

Project Serve Safe Sanitation Facilities for Girl Students

Before Intervention Water Chamber School Entrance Classrooms

For the Planet

Creating Awareness about Water Conservation

Extending Support to Communities During the Pandemic

Long Lasting Partnerships

Starting Up Liaising with Authorities

Supplier Safety Safety Awareness for our

Extending Financial Support Early Payments

MAGGI Spice Plan: The

Spices: Chilli, Cumin, Coriander, Turmeric

Achieve 100% sustainable cocoa

Achieve no deforestation (Palm oil)

Empowering and Engaging Our People

Workplace Safety During Pandemic

Increase focus on physical and

Unleashing passion, competence, commitment for performance and improv

Drive Nesternship + Enhance Diverse Hiring

Growing percentage of women

Henri Nestlé Scholarship:

Growing percentage of women

NesVidya: Performance Support

Our Commitment to ‘Make in India’ Continues

Our 9 factory in India at

Over 70% women Part of

Rajarhat, Kolkata - 700156

Powai, Mumbai - 400072

Tuesday, 12 April 2022 at 10.00 A.M. IST

AGM through Video Conferencing/ Other Audio Visual Means (VC/

Balance Sheet and

Data per Share

*Impacted by MAGGI Noodles issue.

Key Financial Ratios

Nestlé India Limited | Annual Report - 2021 22