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 Ltd.," in the year 2016. His profit in the year 2020-21 after all appropriation was Rs. 6,25,000. This profit was arrived after taking following items into consideration:
| Loss on Sale of fixed Assets | Rs. 5,00,000 |
| Goodwill written off | Rs. 3,80,000 |
| Transfer to reserve | Rs. 3,55,000 |
| Provision for tax | Rs. 2,70,000 |
| Interest on Debentures paid | Rs. 1,65,000 |
Other Details are:
| Particulars | 2020 (in Rs.) | 2021 (in Rs.) |
| Prepaid Expenses | 25,000 | 10,000 |
| Accrued interest | 40,000 | 68,000 |
| Trade payables | 7,00,000 | 4,00,000 |
| Inventories | 6,50,000 | 5,50,000 |
