AGS Transact Chair Says Staff To Be Paid Salaries In Tranches

Goyal says the firm has to make 'tough but necessary decisions', including downsizing ops

- Shayan Ghosh

Cash dispenser manager AGS Transact Technologies Ltd plans to clear pending salaries in tranches, and will finalize and share details in 10 working days, chairman and managing director Ravi Goyal told employees in an email, assuring them that the firm is not shutting down.

Goyal said that given the disruption in its pan-India operations, business collections have also been significantly affected. Mint has reviewed a copy of the mail sent on 8 April.

In February, AGS Transact informed the exchanges about credit rating downgrades by Crisil Ltd and India Ratings and Research Ltd. A detailed disclosure showed AGS and its subsidiary Securevalue had defaulted on loan repayments of ₹71.6 crore.

Mint reported on 14 February how a cash crunch at India's second-largest ATM manager began to impact cash dispensers of some of India's top banks, and eventually led to defaults on bank loans, statutory payments and staff salaries. AGS Transact had 32,151 ATMs and cash recyclers as of September.

"Given the disruption in our pan-India operations, our business collections have also been significantly affected," said Goyal.