Replacement of Customer Sets

Replacement of Customer Sets

1.0 Objective

Streamline the replacements/refund to the customers for all product categories

2.0 Geography

All India

3.0 Policy

Encompasses the need of replacement - attributable to one of the following reasons

  • a) Dead on Arrival
  • b) Repeated failure
  • c) Part not available
  • d) Beyond economical repair
  • e) Technical problem – non repairable
  • f) CDRF (consumer forum) Case/critical escalation

Exclude EOL cases

The replacement of the products shall be as per the below order of priority

  • a) Same model
  • b) Equivalent model in terms of features/capacity/star rating, etc.
  • c) Upgraded model
  • d) Refund to customer will be on depreciated purchase value as per below table

In case of EWP

• The set shall be replaced with a refurbished set only without depreciation.
• If it is replaced with new set, depreciation will be applicable as per the table mentioned & standard prevailing warranty shall be offered

Price difference in case of upgraded model

• Difference amount between MRP of both the models will be collected from customer.
• Difference amount up to 10% of MRP of new model can be waived off by BH.
• Above 10% waiver to be approved by COO/CFO

Depreciation in case of product beyond 1 year from DoP (Date of Purchase)

Customer will be charged depreciation amount on MRP of original model as per below table

Ageing from DOP Deprecation Rate
0-12 Months 0% 0%
13-24 Months 20% 30%
25-36 Months 45% 60%
37-48 Months 65% 80%
49-60 Months 85% 100%
60 Months100% 100%

Waiver of 10% on depreciation rate can be given by RM

Warranty on replaced product:

◦ Warranty/Extended warranty on replaced product will be for the balance period. If a product carrying a warranty for 12 months has been replaced after 8 months of purchase, the replaced product will be warranted for 04 months. ◦ If the product is replaced after expiry of warranty/extended warranty period as per the applicable depreciation rate, the prevailing standard warranty, extended warranty will be offered to the customer.


• Customer’s defective product has to be taken back while giving replacement • Classification as seconds/defective/scrap to be done in Warehouse by service on receipt of defective • Classification to be recommended by Branch Service Manager & approved by Branch Accountant • The data has to be shared in the standardized format (Refer to the XL attachment)

4.0 Exceptions

Any waiver/discount in depreciation more than mention above must be approved by COO/CFO.

5.0 Responsibility & Accountability

CFO will be responsible for ensuring compliance with this policy.

Deviations, if any should be reported within 12 hours to the CFO thru e mail.

6.0 Process Flow

Cases recommended for replacement will be uploaded on replacement portal.

BSM will upload details on replacement portal

RSM will validate & recommend for replacement

RM will approve/reject based on merit of the case.

RM will suggest model to be given as replacement as per available stock to BA

BA to arrange replacement invoicing in the name of customer

Logistics to arrange delivery at customer place & pick up of defective unit.

Service to arrange de-installation & installation of product at customer place.

Effective From

Above policy is w.e.f August 01,2019
Place Mumbai
Version 1.0
Control Copy Yes/No
Controller CFO/COO/BH
Circulation Internal/Enternal
Date July, 2019

Addendum to the SOP

Follow Up SOP on the replacement process & CRM Changes in accordance.

EOL Policy for the customer to be defined

Authorized to Authorize Matrix to be defined

Next Review Date: 01st of January 2020