Solution

The financial instruments in this case are puttable ordinary shares and puttable 'A' ordinary shares issued by T Motors Limited. The shares have the following features:

1. Holders of ordinary shares are entitled to one vote per share, whereas holders of 'A' ordinary shares are not entitled to any voting rights.
2. The holders of both classes of shares are equally entitled to receive a share of the net assets upon liquidation.

Based on these features, the puttable ordinary shares can be classified as equity instruments, as they represent a residual interest in the assets of T Motors Limited after deducting liabilities. The fact that the holders of these shares have voting rights does not change the nature of the instrument as an equity instrument.

The puttable 'A' ordinary shares, on the other hand, may be considered a hybrid instrument. This is because they have a feature of equity (i.e., entitlement to a share of the net assets upon liquidation), but do not have the right to vote. The lack of voting rights is similar to a characteristic of financial liabilities, as the holders of these shares do not have control over the company's management.

However, the fact that the two classes of shares are equally entitled to receive a share of the net assets upon liquidation suggests that they have equal rights in the residual assets of T Motors Limited. This strengthens the case for classifying the puttable 'A' ordinary shares as equity instruments.

Therefore, based on the information provided, the puttable ordinary shares are classified as equity instruments, and the puttable 'A' ordinary shares may be considered a hybrid instrument with features of both equity and financial liabilities.