AGS Transact: Amid Financial Decline, Three Top Officials Quit

Automated teller machine company AGS Transact Technologies Ltd. said that three of its top officials have resigned on Tuesday. In an exchange notification, the company said that its Chief Financial Officer Saurabh Lal, and Executive Directors Stanley Johnson Panacherry and Vinayak R Goyal have resigned from their positions.

While Panacherry's last day is set for April 30, both Goyal and Lal have exited the firm with effect from Tuesday. In their respective resignation letters, Panacherry and Lal cited "personal reasons" for quitting. Goyal said that he was looking to pursue higher education.

Both Panacherry and Goyal are directors on AGS Transact's board. The former has been with the company since 2010, and Goyal has been associated with AGS Transact since 2021. Lal had joined the company in 2012.

AGS Transact has been in the news over the last two months owing to severe business disruptions, coming from financial stress in the company. These disruptions led to multiple bank ATMs being non-functional, as AGS Transact could not ensure cash fulfillment in all of them.

Private sector lender Yes Bank had sent out text messages to its customers in February, saying that there was an ongoing issue with its "managed service provider", due to which some of its ATMs were not available for use. While the bank had not disclosed the name of its service providers, people in the know said that it was AGS Transact.

"We have migrated around 50% ATMs in our network to the banks and MSPs networks to ensure minimised disruption," AGS Transact said in a statement on March 11.

On March 6, AGS Transact told exchanges that the company and its subsidiary Securevalue India Ltd. had defaulted on term loans and repayment of statutory dues.

While AGS Transact owes over Rs 592 crore to banks and has overdue payments worth Rs 17 crore, SVIL owes nearly Rs 127 crore, with a default of Rs 4.2 crore.

Maxwel Aircon India Pvt Ltd., an operational creditor, had filed an insolvency petition against AGS Transact, in front of the Mumbai bench of the National Company Law Tribunal. The legal proceedings are ongoing. Maxwel Aircon is an ATM safe manufacturer.