**AGS Transact Technologies Plans Salary Payments Amid Cash Crunch**
AGS Transact Technologies Ltd, a leading cash dispenser management company, has announced plans to clear pending salaries in installments, with details to be finalized and shared within the next 10 working days. Chairman and Managing Director Ravi Goyal reassured employees in an email that the company is not shutting down, despite facing significant disruptions in its operations across India.
The company has been grappling with a cash crunch that has severely impacted its business collections, leading to defaults on loan repayments totaling ₹71.6 crore. This situation has affected not only AGS Transact but also its subsidiary, Securevalue. The cash flow issues have begun to influence the cash dispensers of major banks in India, resulting in delays in statutory payments and employee salaries.
In his communication, Goyal acknowledged the challenges posed by the freezing of the company’s bank accounts, which has hindered the timely disbursement of salaries. He stated, “Given the disruption in our pan-India operations, our business collections have also been significantly affected.” He emphasized that the company is making “tough but necessary decisions,” which may include downsizing operations, although he did not provide specific details on this matter.
An employee who received Goyal’s email expressed concern over not receiving their salary for the past six months, stating, “There is no clarity right now, but the company is saying they will let us know on salary payments in 10 days. I am awaiting that.”
Despite the ongoing challenges, Goyal reiterated that AGS is committed to its core business and is focused on stabilizing and strengthening its operations in the coming months. He mentioned that a phased salary disbursement plan is in the works and will be communicated soon.
The company has also seen a wave of resignations from its board, including all four independent directors, following the acknowledgment of its financial difficulties. This includes Jhuma Guha, who cited a “preoccupation elsewhere,” and former Mumbai Police commissioner Sivanandhan Dhanushkodi, who stepped down for “personal reasons.”
As AGS Transact navigates these turbulent times, the focus remains on ensuring the long-term sustainability of the business while addressing the immediate concerns of its employees.
**FAQ**
**Q: What is AGS Transact Technologies doing about unpaid salaries?**
A: AGS Transact Technologies plans to clear pending salaries in tranches and will provide further details within 10 working days.
