Rainbow Foundations reports Rs 172.67 crore KMP loans outstanding

Rainbow Foundations Limited reported Rs 172.67 crore of unsecured principal due to four key managerial personnel (KMP) at 30 September 2026, with each loan carrying 15% annual interest and repayable on demand. The balance fell from Rs 253.27 crore at 1 April after Rs 146.76 crore of repayments exceeded Rs 66.17 crore of new loans.

How much did Rainbow Foundations owe its KMP lenders?

Rainbow Foundations owed four KMP lenders Rs 172.67 crore in loan principal at 30 September 2026, compared with Rs 253.27 crore at 1 April 2026. The Rs 80.59 crore reduction reflects the difference between Rs 66.17 crore of loans taken and Rs 146.76 crore of principal repaid during the half year.

Mr. Navin Jain, identified as a Director and KMP, had the largest closing principal balance at Rs 132.44 crore, down from Rs 139.79 crore. Mr. Gajraj Jain, Joint Managing Director and KMP, was due Rs 29.20 crore, up from Rs 22.82 crore, while Mr. Ashish Jain, Director and KMP, was due Rs 10.93 crore, down from Rs 17.30 crore.

Managing Director Mr. Anop Chand Jain had Rs 10.81 lakh of principal outstanding at 30 September 2026, compared with Rs 73.36 crore at the start of the half year. His disclosed Rs 12.25 crore of loans taken was outweighed by Rs 85.50 crore of repayments, producing the sharpest reduction among the four named lenders.

What were the terms of Rainbow Foundations' KMP loans?

Rainbow Foundations disclosed that all four loans were unsecured, carried interest at 15% per annum and were repayable on demand for business purposes. The related-party filing for the half year ended 30 September 2026 does not disclose fixed maturity dates, collateral or an instalment-based repayment schedule.

The on-demand terms apply to the Rs 172.67 crore closing principal distributed among the Managing Director, Joint Managing Director and two Directors. The filing identifies these four people as KMP lenders, while stating that non-executive and independent directors had no transactions with Rainbow Foundations during the half year.

Rainbow Foundations stated that the closing principal figures exclude interest for the half year, which is presented separately as interest payable. Interest on loans was Rs 10.41 crore for Mr. Navin Jain, Rs 1.86 crore for Mr. Gajraj Jain, Rs 88.26 lakh for Mr. Ashish Jain and Rs 79.52 lakh for Mr. Anop Chand Jain, totalling Rs 13.95 crore.

Did Rainbow Foundations repay more KMP debt than it borrowed?

Rainbow Foundations repaid Rs 146.76 crore of KMP loan principal during the half year ended 30 September 2026, exceeding the Rs 66.17 crore it borrowed by Rs 80.59 crore. This produced the decline from Rs 253.27 crore in opening principal to Rs 172.67 crore in closing principal.

Mr. Gajraj Jain was the only one of the four lenders whose principal balance increased over the period, rising by Rs 6.37 crore. He advanced Rs 23.54 crore and received Rs 17.16 crore in repayments, whereas the other three lenders each had repayments exceeding new loans.

Mr. Navin Jain received Rs 25.60 crore in principal repayments against Rs 18.25 crore of loans taken, reducing his balance by Rs 7.35 crore. Mr. Ashish Jain received Rs 18.50 crore against Rs 12.13 crore advanced, reducing his balance by Rs 6.37 crore, while Mr. Anop Chand Jain’s principal reduced by Rs 73.25 crore.

How did KMP loan interest compare with Rainbow Foundations' finance costs?

Rainbow Foundations reported Rs 13.95 crore of interest on loans from the four KMP lenders for the half year ended 30 September 2026. Standalone finance costs were Rs 22.90 crore for the same period, up from Rs 17.47 crore in the half year ended 30 September 2025; the filing does not say that KMP interest represented all finance costs.

The standalone cash-flow statement recorded Rs 7.39 crore of interest paid in the 2026 half year, compared with Rs 17.43 crore in the corresponding 2025 half year. It also reported a Rs 126.76 crore net decrease in other borrowings, reversing a Rs 312.43 crore net increase in the comparable prior-year half year; these cash-flow categories are broader than the named KMP loans.

Standalone revenue from operations rose to Rs 155.46 crore in the half year ended 30 September 2026 from Rs 85.13 crore a year earlier. Profit before tax increased to Rs 7.67 crore from Rs 3.41 crore, while finance costs increased by Rs 5.43 crore; Rainbow Foundations reports only one Real Estate/Construction segment and gives no segment-level finance-cost allocation.

What other related-party transactions did Rainbow Foundations disclose?

Rainbow Foundations reported Rs 227.75 crore of total related-party transactions for the half year ended 30 September 2026. The total includes Rs 66.17 crore of KMP loans taken, Rs 146.76 crore of repayments, Rs 13.95 crore of interest on loans, remuneration payments and Rs 1 lakh invested in the equity of wholly owned subsidiary Rainbow Foundations and Real Estates Pvt Ltd.

Remuneration to the four KMP loan lenders totalled Rs 54 lakh, comprising Rs 15 lakh each to Mr. Anop Chand Jain and Mr. Gajraj Jain and Rs 12 lakh each to Mr. Navin Jain and Mr. Ashish Jain. The filing also lists Rs 12 lakh for Mr. Nitesh Jain, identified as Chief Financial Officer and Executive Director and Chief Financial Officer from 30 September 2026, and Rs 1.50 lakh for Company Secretary Mr. Ikkapadath Bilal Mohammadali.

Three relatives of KMP received total remuneration of Rs 19 lakh: Rs 12 lakh for Mr. Vikash Jain, Rs 6 lakh for Mrs. Priyanka Jain and Rs 1 lakh for Mrs. Chandanbala Jain. Rainbow Foundations said these remuneration figures exclude gratuity, which is provided for the company as a whole, and said specified KMP remuneration was revised from 30 September 2026 following approval at the 2026 annual general meeting.

How do the KMP loans relate to Rainbow Foundations' balance sheet?

Rainbow Foundations reported consolidated current borrowings of Rs 437.60 crore at 30 September 2026, down from Rs 512.23 crore at 31 March 2026. It also reported consolidated non-current borrowings of Rs 84.35 crore, compared with Rs 140.12 crore six months earlier.

The Rs 172.67 crore KMP principal is disclosed in the standalone related-party statement, so the filing does not establish it as a directly comparable subset of either consolidated borrowing category. Consolidated other financial liabilities increased to Rs 144.47 crore at 30 September 2026 from Rs 87.53 crore at 31 March 2026, but no line-by-line mapping of the Rs 13.95 crore KMP interest payable is provided.

The related-party disclosure says the parties were identified by management and relied upon by the auditors. Rainbow Foundations' unaudited results, cash-flow statement and related-party disclosure were dated 14 November 2026 after Audit Committee review and Board approval.

Conclusion

Rainbow Foundations reduced KMP loan principal by Rs 80.59 crore during the six months to 30 September 2026, but still had Rs 172.67 crore in unsecured debt repayable on demand. Mr. Navin Jain accounted for Rs 132.44 crore of the closing balance, while the four lenders accrued Rs 13.95 crore of half-year interest at the disclosed 15% annual rate.

The next reported movements in principal, repayments and interest payable will show whether the half-year reduction continues. Separately, Rainbow Foundations said it is establishing an approved gratuity trust fund with Life Insurance Corporation of India and will give accounting effect to applicable Central and State rules or clarifications as they emerge.