1. There is no impairment loss on fixed assets during the year ended
 December 31, 2010. For the previous year impairment loss on fixed
 assets (gross -Rs 103,168 thousands, net of deferred taxes - Rs. 68,101
 thousands) relates to various items of plant and machinery that have
 been brought down to their recoverable values upon evaluation of future
 economic benefits from their use.
 
 2.  Segment reporting
 
 Based on the guiding principles given in Accounting Standard on
 Segment Reporting (AS-17), the Companys primary business segment is
 Food. The food business incorporates product groups viz. Milk Products
 and Nutrition, Beverages, Prepared dishes and cooking aids, Chocolates
 and Confectionery, which mainly have similar risks and returns. As the
 Companys business activity falls within a single primary business
 segment the disclosure requirements of AS -17 in this regard are not
 applicable.
 
 3.  Related party disclosures under Accounting Standard 18
 
 Holding companies: Nestle S.A. and Maggi Enterprises Limited
 
 Fellow subsidiaries are disclosed to comply with para 3 (a) of
 Accounting Standard -18 on Related Party Disclosures albeit these do
 not control or exercise significant influence on Nestle India Limited:
 
 Belte Schweiz AG, Nestec S.A., Nestec York Limited, Nestle (China)
 Limited, Nestle (PNG) Limited, Nestle (South Africa) (Pty) Limited,
 Nestle (Thai) Limited, Nestle Australia Limited, Nestle Bangladesh
 Limited, Nestle Central And West Africa Ltd., Nestle Deutschland AG,
 Nestle Egypt S.A.E., Nestle Hong Kong Limited, Nestle Foods Kenya Ltd.,
 Nestle France S.A.S., Nestle Ghana Ltd., Nestle Hungaria Kft., Nestle
 Iran (Private Joint Stock Company), Nestle Japan Ltd., Nestle Korea
 Ltd., Nestle Kuban LLC, Nestle Lanka PLC, Nestle Manufacturing
 (Malaysia) Sdn. Bhd, Nestle Middle East FZE, Nestle Nederland B.V.,
 Nestle Pakistan Ltd., Nestle Philippines, Inc., Nestle Product
 Technology Centre Lebensmittelforschung GMBH, Nestle Products Sdn.
 Bhd., Nestle R&D Centre (Pte) Limited, Nestle Romania S.R.L., Nestle
 Shanghai Limited, Nestle Singapore (PTE) Limited, Nestle Suisse S.A.,
 Nestle Taiwan Limited, Nestle Tianjin Limited, Nestle Turkiye Gida
 Sanayi A.S., Nestle UK Ltd., Nestle USA Inc, Nestle Vietnam Limited,
 Nestrade-Nestle World Trade Corporation, Osem Food Industries Limited,
 Osem Uk Limited, PT Nestle Indonesia, Servcom SA, Societe des Produits
 Nestle S.A., Nestle R&D Centre India Private Limited, Nestle Canada
 Inc., Nestle Waters France S.A.S, Nestle R&D Center Shanghai Limited,
 Nestle Italiana S.p.A, Nestle Maroc S.A, Nestle New Zealand Limited,
 Nestle Shuangcheng Limited, Nestle Mexico S.A.de C.V, Nestle Business
 Services S.A., Nestle Equatorial Africa Region (EPZ) Limited, Nestle
 Cesko s.r.o., Nestle Product Technology Centre, Nestle Asean (Malaysia)
 Sdn. Bhd., Societe Pour LExportation Des Produits Nestle S.A., Al
 Manhal Water Factory Co. Ltd., Nestle Manufacturing Ltd., Nestle Waters
 Product Technology Centre, Nestle Polska S.A., Nestle Chile S.A.,
 Nestle Brasil Ltda., Nestle Zimbabwe (Pvt) Ltd., Nestle Dubai
 Manufacturing LLC, Quality Coffee Products Ltd., Nestle Belgilux S.A.,
 Nestle Cote dIvoire, Nestle Syria Ltd., Nestle Dongguan Limited,
 Nestle Capital Advisers S.A., Osem Investments Ltd., Nestle Nigeria
 PLC, Nestle Purina PetCare France S.A.S, Saudi Food Industries Co.
 Ltd., Nestle R&D Centre Beijing Ltd., Sanpellegrino S.p.A., Nestle
 (Ireland) Ltd., Nestle Purina Petcare Company, Nestle Nespresso S.A.,
 Nestle Espana S.A.
 
 Whole time directors: Antonio Helio Waszyk, Chairman & Managing
 Director, Martial G Rolland, Chairman & Managing Director (upto
 September 30, 2009), Shobinder Duggal, Director - Finance & Control,
 Christian Schmid, Director - Technical (From August 02, 2010).
 
 4.  On the basis of confirmation obtained from suppliers who have
 registered themselves under the Micro Small Medium Enterprise
 Development Act, 2006 (MSMED Act, 2006) and based on the information
 available with the company, the balance due to Micro & Small
 Enterprises as defined under the MSMED Act, 2006 is Rs. 52,451
 thousands (previous year Rs. 16,396 thousands). Further, no interest
 during the year has been paid or payable under the terms of the MSMED
 Act, 2006.
 
 5.  Employee Plans
 
 a) The Company makes contribution towards employees provident fund and
 employees state insurance plan scheme. Under the rules of these
 schemes, the Company is required to contribute a specified percentage
 of payroll costs. The Company during the year recognised Rs. 156,180
 thousands (previous year Rs. 126,811 thousands) as expense towards
 contributions to these plans.
 
 Out of the total contribution, made for employees provident fund, Rs.
 77,540 thousands (previous year Rs. 67,262 thousands) is made to the
 Nestle India Limited Employees Provident Fund Trust while the remainder
 contribution is made to provident fund plan operated by the Regional
 Provident Fund Commissioner. The outstanding balance payable as at
 December 31, 2010 to the Trust is Rs. 14,078 thousands (previous year
 Rs. 11,986 thousands) on account of companys and employees
 contribution for the month of December 2010. The same has since been
 paid on 05.01.2011.
 
 The total plan liabilities under the Nestle India Limited Employees
 Provident Fund Trust as at December 31, 2010 as per the unaudited
 financial statements for the year then ended is Rs. 1,202,164 thousands
 (previous year Rs. 1,007,533 thousands) as against total plan assets of
 Rs. 1,198,580 thousands (previous year Rs. 1,004,449 thousands). The
 funds of the Trust have been invested under various securities as
 prescribed under the rules of the Trust.
 
 b) Gratuity scheme - This is a funded defined benefit plan for
 qualifying employees. The Company makes contributions to the Nestle
 India Limited Employees Gratuity Trust Fund. The scheme provides for a
 lumpsum payment to vested employees at retirement, death while in
 employment or on termination of employment. Vesting occurs upon
 completion of five years of service.
 
 c) Pension scheme - The Company operates a non funded pension defined
 benefit scheme for its employees that qualify under the scheme. The
 scheme is discretionary in nature.
 
 The estimates of future salary increases, considered in actuarial
 valuation, take account of inflation, seniority, promotion and other
 relevant factors such as demand and supply in the employment market.
 
 The expected return on plan assets is determined considering several
 applicable factors mainly the composition of the plan assets held,
 assessed risks of assets management, historical results of return on
 plan assets and the policy for plan assets management.
 
 6.  The Companys significant leasing arrangements are primarily in
 respect of operating leases for premises (office, residential,
 warehouses etc.) and vehicles. These leasing arrangements which are not
 non-cancellable are usually renewable on mutually agreeable terms. The
 aggregate lease rentals charged to the profit and loss account are Rs
 395,851 thousands (previous year Rs. 332,706 thousands).
 
 7.  The Companys borrowing facilities, comprising fund based and non
 fund based limits from various bankers, are secured by way of a first
 pari passu charge on all movable assets (excluding plant and
 machinery), finished goods, work in progress, raw materials and book
 debts.
 
 8.  Previous year figures have been regrouped/reclassified wherever
 necessary, to make them comparable.