Case details for Meenakshi Rama Rao

Name: Meenakshi Rama Rao

Name: CHRYSALIS CHANGE AND TRANSFORMATION LIMITED

Date of Birth: 9 / 11 / 1964

Date Order Starts: 15 / 4 / 2022

Disqualification Length: 7 Years 0 Month(s)

CRO Number: 11217845

Last Known Address: Flat 2, 23 Bruton Sreet, , , London, W1J 6qf

Conduct: Ms Meenaskshi Rama Rao (“Ms Rao”) caused Chrysalis Change and Transformation Ltd (“Chrysalis”) to obtain a loan of £50,000 under the government-backed “bounce back loan scheme” (“BBLS”), to which it was not fully entitled, by the provision of false information and caused Chrysalis to act in breach of the terms of the BBLS loan and to the detriment of its creditors, in that: The eligibility criteria shown in the banks application state “You can apply for a loan which is up to 25% of your annual turnover in calendar year 2019, to a maximum of £50,000. If your business was established after 01 January 2019, you should apply the 25% limit to your estimated annual turnover from the date you have started your business.” Ms Rao signed and dated the BBLS application on 26 June 2020 and stated Chrysalis’s annual turnover was £250,000 and applied to borrow £50,000. Ms Rao ticked the box in the application to confirm that the amount borrowed was equal to or less than 25% of annual turnover for 2019. Annual accounts prepared for Chrysalis to 28 February 2019 show the turnover was £91,100 and for 28 February 2020 the turnover was £81,630. The accounts to 28 February 2019 were signed by Ms Rao on 15 November 2019 and the accounts to 28 February were signed by Mrs Rao on 22 February 2021. Ms Rao was therefore only entitled to apply for a maximum of £22,775 based on the turnover to 28 February 2019 of £91,100 being the equivalent of 25% under the terms of the BBLS. Under the terms of the agreement BBLS are only provided for uses that bring economic benefit to the company. Ms Rao stated the funds were used to develop software in India which would result in generating business revenue for the company. The bank statements show from the date of receipt of BBLS funds on 26 June 2020 to 23 November 2020 there were no sales receipts. Bank statements for the Chrysalis company bank account show payments totalling £21,533 of the BBLS funds, made between 29 July 2020 and 17 August 2020 to a third party organisation in India; £9,579 of the funds were used on business expenses; and £18,888 of the funds were used for Ms Rao’s personal benefit meaning the BBLS funds were not used entirely for the economic benefit of the company. In the year to February 2020 Ms Rao’s salary had been £7,540. In November 2020, Ms Rao sought the advice of Insolvency Practitioners. Chrysalis was placed into liquidation on 01 April 2021 and the BBLS moneys remains unpaid. 

This information is correct as at 25 / 3 / 2022



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