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POLICY: SALES RETURN/ REPLACEMENT

2009
OBJECTIVES

The purpose of this policy is to continue to build stronger image of

Brands/Products marketed by Mega Group, responding to Customer needs at the
shortest possible time, and finding smooth solution in the area of After Sales
Services, especially for cases falling under warranty period.

There could be a possibility where the customer satisfaction is at stake, thereby the
company, in very judicial cases, has to change its product with the new one, or
provide extra discounts to sell the damaged or faulty units.

SCOPE

This policy covers Sales Return which is to be made to optimize End- User’s
satisfaction and the product is subject to Repair.
It excludes Such Returns which are for other Commercial reasons.

Primarily, Replacement of damaged set with the new one is not allowed. However
there may be few exceptions where product replacement can be permitted. Any
such replacement cannot be made unless it is specifically approved by the
authorized Senior Manager/Marketing Manager, on the basis of recommendation
of the Sales and/ or Service Manager.

Sales Manager, while recommending such Replacement, shall make sure that he
has failed to satisfy the customer to accept the first buy.

PROCEDURE:

1. Intimation

Concerned staff (Salesman, Sales officer, Showroom Incharge,

Storekeeper,) shall continue to inform to Regional Sales Manager
concerned, by preparing a report as per the Format *A* enclosed.

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2. Classification
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Sales Manager shall assure the extent of damaged/ defective

set, classify the damages on form “A” and send it to the
Country Manager who shall seek necessary approvals, only then
the set can be collected/ taken as Sales Return

A) In working condition, but carton damaged

B) In working condition but Remote control/Accessories
missing.
C) In working condition but Body damaged.
D) Electrically Dead/ Body damage and Manufacturing
defect.

3. On receipt of complain from the Dealer/Customer, Sales Manager

shall prepare a prescribed “ Damaged Survey” Report, Per
Annexure “A” in quadruplicate, for distribution to Accounts
Dept, Sales Department, MSC and one copy to be pasted on
the
Unit

4. Marketing/Country Manager (CM) shall recommend/approve

certain discounts/incentives, within the Policy to dispose off the set
then & there. Such sets shall not be taken back or sent to
warehouse or MSC or Authorized Service Dealer(s)/ASD.

5. Any discount so allowed shall be based upon then prevailing

Dealer Net Price of the related model.

6. Maximum period to accept a Sales Return, from the Dealer/

Customer is made within two (2) months from the Date of
DO/Invoice or within 3 days from the Date of Sales to End- User,
whichever is earlier.

7. In cases where extra-discount is allowed, one-time repair can be

carried out by MSC or ASD against the payment by the Dealer/
End-User to them, keeping in tact Sales Warranty.

8. In exceptional cases, there may be a possibility where the

replacement, though not desired, is inevitable for keeping good
relations with the dealer/customer. Such Return shall only be
affected by the approval of the Group Director. Page 2/4
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9. The Damaged/defective /replaced unit referred to in clause No. 8,

is to be sold only to MSC as per Discounted Price.

10. Damaged/Defective units will be sold by MSC as per policy so

laid down, (but not to Sales Dealer)

11. MSC shall prepare a “Good Receipt Note

12. Accounts will credit Dealer Account for the Net amount billed to
Sales Dealer/ Customer only after the Receipt Note
from MSC.

13. Replacement/ New unit is to be issued/supplied to the customer

against Normal Delivery Order (DO) engrossing the cross
reference of GRN No. & date, so issued per clause no. 7 above.

14. In case, Goods are damaged or opened by the Transporter

Company or by the Custom Authorities, Warehouse In-charge
shall prepare a survey Report after assessing the physical damage
Or for missing accessories. If the unit (s) is damaged by the
Transporter Company, Warehouse In charge shall lodge
Complaint/ claim on the Transport Company/Insurance Co. with
a copy to the Accounts Department.

15. Such units will be sent/sold to MSC as per this policy.

16. Accounts Dept shall take necessary steps to seek compensation

from the Transport Co. or from Insurance Company or both.

Pricing

With all good intentions, efforts should be made to realize

Maximum price for disposal of the damaged set.

However certain norms, as guide lines, are being defined as

under for sale to Sales Dealer/Customer,
on as it is where it is basis:

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a) Set classed as (A) category damage

Dealer Net price less 5%

b) Set classified as (B) category damage:

Dealer Net Price less 15 %

c) Set classified as (C) category damage:

Dealer Net Price less 25 %

d) Set classified as (D) category damage/defect:

To be sent to Mega Service
Center for Cannibalization

The Country Manager can approve the sale/price up to the limits

mentioned above. In cases where higher discount then stated above
is to be allowed, it is to be sold to MSC

Realization of loss on Damaged units :

Damaged stocks at any point of time , results in a loss to the brand , hence
A proper and justified mechanism is required to cover up the loss :

1 ) If the damage has been incurred at Dealers shop ,the extent of damage
Is to be charged to the dealer as per survey report , the amount will be
Debited to the Dealers’ ledger .

2 ) If CM is of the view that the Damage is not to be shouldered by the Dealer,

Then the source is to be mentioned , like the savings made in any nature .

3 ) Damage from Customs opening is a normal loss and the Brand will bear it

4 ) Damage in transit is to recovered from Insurance / transporter as the case may

be .

5 ) Dead units are to be adjusted into the Vendors account .

This policy comes into force with immediate effect.

Dated: January 01 , 2009

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