On $1$ August $2023,$ Velaphi Ltd issued $7500$ compulsorily convertible debentures with a face value of

R$70$ per debenture $($which represented their fair value on issue date$).$ The debentures are compulsorily

convertible on $31$ July $2029$ into two ordinary shares for every debenture held. The debentures pay a

fixed interest at a rate of $11\%$ per annum, compounded annually. The market$-$related interest rate for

similar instruments without the conversion rights is $12,5\%.$

Discuss, in terms of IAS $32,$ Financial instruments: presentation, the classifcation

and measurement of the debentures in the financial records of Velaphi Ltd for the

year ended $31$ March $2024.$

Please note:

$$ Your discussion must include all the relevant amounts and calculations.