Query on Financial instrument treatment under ind-As

It is classified as Financial liability...because it has obligation to deliver cash i.e 14% of rs140000 for payable half yearly....on the other hand it has obligation to settle in own shares but at the option of holder....thus it is assumed that the holder does not exercise his right of conversion into equity therefore the financial instrument is classified as Financial liablity but if we talk in technical term it is compound instrument which has both elements equity as well as financial liablity...but the value of equity is very small i.e(option value)....i hope your query is resolved

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