Read the following information to answer.
On the basis of case study given below, answer the question which follows:
"Mikku on alumni of IIT Delhi initiated his start-up "Gajanan Lid.," in the year 2016. His profit in the year 2020-21 after all appropriation was ₹625000. This profit was arrived after taking the following items into consideration:

Net profit before tax will be:

₹1250000

Profit after all appropriations =₹625000
Add: transfer to reserve         355000
        provision for tax            270000
Profit before tax = 1250000