Accounting

1. Agriculture
In Karnataka, 46% of the catchment area of the Kabini River is agricultural land, principally
used for the cultivation of rice and sugarcane, both water-intensive crops. In recent years, low
rainfall, combined with high water demand within the catchment, has resulted in periods of
insufficient water supply for farmers in the river basin.
To extend water stewardship efforts across the whole catchment area, Nestlé India, in 2015,
partnered with AgSri, an agricultural services company that developed ecologically
sustainable systems, such as the Sustainable Sugarcane Initiative (SSI) and the System of
Rice Intensification (SRI), to conduct pilot projects. These trials demonstrate improved
techniques for growing water-intensive crops to rice and sugarcane farmers.
Water management in agriculture is based largely on managing variability. Through the
interventions in paddy and sugarcane cultivation, the project aims to relieve the acute water
shortage of the Kabini basin catchment. The interventions aim to:
 Benefit farmers by improving their productivity through an increase in the yield per
hectare and reducing input costs.
 Significantly reduce water usage by reducing flood irrigation for paddy and
sugarcane.
 Benefit the environment through reduced energy requirements for irrigation, reducing
the use of chemical fertilisers and promoting soil microbial activity to improve soil
health.
Our work with coffee farmers
In line with our commitment to engage with our suppliers, we have implemented water
management initiatives in agriculture. Through the NESCAFÉ Plan, we are raising awareness
and providing technical support to coffee farmers on water conservation in irrigation, soil
management, waste water treatment and recycling, and water use optimisation. We have also
undertaken capacity building on integrated farming techniques, as part of which, we provide
technical assistance for rainwater harvesting and recharging practices. Our aim is to empower
farmers in water-stressed areas to conserve this vital resource for years to come.
Our work with milk farmers
Punjab is called the 'Granary of India' due to its high wheat and rice yields. Factors such as
fertile soil, access to water, intensive farming by hardworking farmers and their families,
along with the use of high-yield crop seeds for cultivation, have contributed to the rapid
growth of agriculture in the state. On the flip side, over exploitation of groundwater has
caused its severe depletion, as almost 92% of the irrigation water is sourced from
groundwater. Nestlé partnered with the International Water Management Institute (IWMI) to
study the water footprint of the agricultural and dairy production in Moga. Some of the
recommendations provided in the report for water management were changing the cropping
pattern, delayed transplanting of paddy, laser-land levelling, increased bund heights,
intermittent irrigation and system of rice intensification among others.
Based on these recommendations, Nestlé India has developed a programme for farmers to
raise awareness about the importance of water, challenges likely to be faced in the
forthcoming years and mitigation actions that they can take.

2. Fiscal policy :-
Some of the major initiatives taken by the Government to promote the FMCG sector in India
are as follows:
 On November 11, 2020, Union Cabinet approved the production-linked incentive
(PLI) scheme in 10 key sectors (including electronics and white goods) to boost
India’s manufacturing capabilities, exports and promote the ‘Atmanirbhar Bharat’
initiative.
 Developments in the packaged food sector will contribute to increased prices for
farmer and reduce the high levels of waste. In order to provide support through the
PLI scheme, unique product lines—with high-growth potential and capabilities to
generate medium- to large-scale jobs—have been established.
 The Government has drafted a new Consumer Protection Bill with special emphasis
on setting up an extensive mechanism to ensure simple, speedy, accessible, affordable
and timely delivery of justice to consumers.
 The Goods and Services Tax (GST) is beneficial for the FMCG industry as many of
the FMCG products such as soap, toothpaste and hair oil now come under the 18% tax
bracket against the previous rate of 23-24%. Also, GST on food products and hygiene
products have been reduced to 0-5% and 12-18% respectively.
 To boost the growth of fast moving consumer goods (FMCG) sector, the government
has proposed widening of tax slabs and reduction of tax to drive consumption by
putting more money in the hand of consumers and reviving the overall demand.
 Focused efforts to improve agricultural productivity, together with better target
subsidies, are summed up in a 16-point action plan. This should relieve stress in the
agrarian economy and boost rural growth prospects for FMCG.”
 Reduced personal taxes auger well for consumer goods companies as more disposable
income will help drive consumption of branded goods.”
Contribution of FDI :-
The Government has allowed 100% Foreign Direct Investment (FDI) in food processing and
single-brand retail and 51% in multi-brand retail. This would bolster employment, supply
chain and high visibility for FMCG brands across organised retail markets thereby bolstering
consumer spending and encouraging more product launches. The sector witnessed healthy
FDI inflows of US$ 18.03 billion from April 2000 to December 2020

3. ResearchMethodology
 To study in depth about its economic situation Inflation, Interest rate, Foreign
exchange rate, Agriculture production, FDI/FII, Govt Budget / Fiscal policy etc
 To apply what we have studied during these few months about SWOT, porter 5 forces
and financial ratios etc & use them in this project.
 To study the Fundamentals and analyse the liquidity position of Nestle India Ltd
Keywords fundamental analysis, economic, FMCG industry, india
Data type: The study is based on secondary data,
Sample: For the purpose study the we have choosen FMCG company Nestle
 Period of data: April 2017 – March 2021
Limitation
The limitations of using secondary data for analyzing:
It can be vague and general and may not really be helpful in making decisions.
The information and data might not be accurate and should be checked.
• The data might be old and out of date
1) The study and research done for project are limited due to Time constraints.
2) The data collected for this research which is secondary is not big enough.

4. Literature review
LARA FADEL ALKADMANI, HAITHAM NOBANEE (2020) is to study entitled that
assessment of financial performance of NESTLE and soundness is critical to any company.
The data is obtained from the company financial statements during 4 years. Nestle has a
strong position in its liquidity and profitability. It has performed better and has improved in
their financial management, reducing their debtor’s collections period and managed their
investment in total assets concerning their sales.
DR. M.YASODHA, P. PRIYADHARSHINI (2019) used for comparing a firms financial
performance with the averages .It focus on determining the efficiency and solvency of nestle
India ltd and the entity ability to pay its long term debts. The study conducted is based on the
secondary data and it covers two years of period. Nestle India ltd must reduce their outside
liabilities or they must increase the share capital .The outside liabilities are more as compared
to share capital which is not a good capital structure.
MS. KOMAL KAKADE, DR. SWARNALATA PHILIP (2018) is the fundamental analysis
is an important tool for and the investor for making his buy or to sell decisions based on the
detailed analysis of the financial statements of the company. Fundamental analysis of
NESTLE India covered operating analysis profit margin, net profit margin earning per share,
dividend per share and intrinsic values. The study is based on data obtained from the annual
reports of the company .A period of five years to adopt to draw the meaningful inferences.
The company analysis brings out the strengths and weakness of the company.