AGS Transact defaults on dues price ₹386 million

AGS Transact Applied sciences and its models defaulted in paying obligations price ₹385.9 million. File

AGS Transact Applied sciences and its models defaulted in paying obligations price ₹385.9 million ($4.44 million), the struggling funds providers agency stated.

The corporate and its unit Securevalue India “defaulted within the cost of principal compensation obligations for sure excellent borrowings” price ₹212.3 million, it stated in an change submitting late on Thursday.

The businesses and one other unit, India Transact Providers, additionally delayed paying sure statutory dues, together with tax liabilities price ₹173.6 million on account of delays in gathering funds from prospects and invoicing sure unbilled quantities.

AGS Transact offers digital and cash-based options to banks and company shoppers, together with ATM providers.

The corporate and Securevalue owe a complete of ₹7.19 billion to their collectors, which incorporates the State Financial institution of India and Axis Financial institution, the corporate stated.

The most recent growth follows a string of economic difficulties for the Indian agency, together with a risk of insolvency proceedings from Maxwel Aircon India, one in all its collectors, over alleged unpaid dues.

SBI, Axis Financial institution and Maxwel Aircon didn’t instantly reply to Reuters’ requests for feedback.

The corporate has been grappling with monetary pressure, resulting in credit standing downgrades from companies Crisil and India Rankings, and the resignation of all 4 of its unbiased administrators over “private causes.”