Can someone tell me if this coin is really damaged or was a tool used to get it out or another story

Can anyone tell me something about this coin. If it is really damaged? What are the markings on the side?

This is the oldest coin in my collection and I know very little about it. I bought it in Kuwait. The man said he had it in his family for over 350 years. I haggle him for it for three days. I told him it would stay in my family for as long as it was in his.

I found a website to confirm what it was.

http://www215.pair.com/sacoins/public_html/mughal/mughal_20_sha.html

Thanks

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