its never like this that you only pay interest to your lenders when you make profit, you are bound to pay interest wheather you are at profit or loss, it has nothing to do with profit here in you example new net income after considering net interest will be 47 crore(50-3), suppose if profit was to 2 crore before paying interest then after deducting or paying 3 crore interest you would show loss of 1 crore(2-3=-1). did you get that for more clarity mail me amit.singhiims@gmail.com

Thanks Amit. Marc, Amit is right - interest has nothing to do with profit or loss. The only thing that depends on profit are taxes - you dont pay income tax if you dont make a profit. You have to pay interest no matter what.