Fashion India Ltd. (FIL) is a listed entity engaged in the manufacture and sale of fashion products. During the year, FIL undertook various…

Fashion India Ltd. (FIL) is a listed entity engaged in the manufacture and sale of fashion products. During the year, FIL undertook various transactions involving equity instruments and convertible debentures. On 10 August 20X2, FIL entered into an agreement with RFD Ltd. for purchasing specialised machinery. The agreement stipulated that the consideration for the machinery would be settled by issuing FIL's equity shares. The order was confirmed on the same date. The machinery was supplied under an invoice dated 25 October 20X2 and was delivered to FIL on 1 November 20X2. The agreed consideration was ₹ 150 lakh, while the fair value of the machinery on the date of receipt was reliably estimated at ₹ 160 lakh. In accordance with the agreement, FIL issued 1,00,000 equity shares of ₹ 100 each to RFD Ltd. FIL also had a 1,000 face-value 10% convertible debenture, issued on 1 April 20X1 and maturing after 10 years. The debenture was originally convertible into ordinary shares at ₹ 50 per share, with interest payable annually in cash. On 1 April 20X2, FIL decided to encourage the debenture holder to convert the debenture earlier. It therefore amended the conversion terms so that, if conversion took place before 1 June 20X2, the conversion price would be reduced from ₹ 50 to ₹ 40 per share. On the date of modification, FIL's ordinary shares were trading at ₹ 80 per share. FIL also had 1,000 ₹ 100, 10% convertible bonds, outstanding throughout the year. Each bond was convertible into 20 ordinary shares on demand. FIL had 10,00,000 ordinary shares outstanding throughout the reporting period. For the year, FIL reported earnings of ₹ 5,00,000 and the applicable income-tax rate was 21%. The market price of an ordinary share was ₹ 4.50. For purposes of calculating diluted EPS, assume the convertible bonds qualify as potential ordinary shares and ignore the requirements of Ind AS 109 relating to the convertible bonds. Analyze the transactions mentioned above and choose the most appropriate option in questions 13 to 17 in line with relevant Ind AS: