converting tex to xdoc using pandoc (math formulas are not converted)

Question

I just started using pandoc and I followed every step in this page.
First of all we create a text file named test1.md.txt

# Test!

This is a test of *pandoc*.

- list one
- list two

Convert it to a tex file using the code:

pandoc test1.md.txt -s -o test1.tex  

we get:

\documentclass[]{article}
\usepackage{lmodern}
\usepackage{amssymb,amsmath}
\usepackage{ifxetex,ifluatex}
\usepackage{fixltx2e} % provides \textsubscript
\ifnum 0\ifxetex 1\fi\ifluatex 1\fi=0 % if pdftex
  \usepackage[T1]{fontenc}
  \usepackage[utf8]{inputenc}
\else % if luatex or xelatex
  \ifxetex
    \usepackage{mathspec}
    \usepackage{xltxtra,xunicode}
  \else
    \usepackage{fontspec}
  \fi
  \defaultfontfeatures{Mapping=tex-text,Scale=MatchLowercase}
  \newcommand{\euro}{€}
\fi
% use upquote if available, for straight quotes in verbatim environments
\IfFileExists{upquote.sty}{\usepackage{upquote}}{}
% use microtype if available
\IfFileExists{microtype.sty}{%
\usepackage{microtype}
\UseMicrotypeSet[protrusion]{basicmath} % disable protrusion for tt fonts
}{}
\ifxetex
  \usepackage[setpagesize=false, % page size defined by xetex
              unicode=false, % unicode breaks when used with xetex
              xetex]{hyperref}
\else
  \usepackage[unicode=true]{hyperref}
\fi
\usepackage[usenames,dvipsnames]{color}
\hypersetup{breaklinks=true,
            bookmarks=true,
            pdfauthor={},
            pdftitle={},
            colorlinks=true,
            citecolor=blue,
            urlcolor=blue,
            linkcolor=magenta,
            pdfborder={0 0 0}}
\urlstyle{same}  % don't use monospace font for urls
\setlength{\parindent}{0pt}
\setlength{\parskip}{6pt plus 2pt minus 1pt}
\setlength{\emergencystretch}{3em}  % prevent overfull lines
\providecommand{\tightlist}{%
  \setlength{\itemsep}{0pt}\setlength{\parskip}{0pt}}
\setcounter{secnumdepth}{0}

\date{}

% Redefines (sub)paragraphs to behave more like sections
\ifx\paragraph\undefined\else
\let\oldparagraph\paragraph
\renewcommand{\paragraph}[1]{\oldparagraph{#1}\mbox{}}
\fi
\ifx\subparagraph\undefined\else
\let\oldsubparagraph\subparagraph
\renewcommand{\subparagraph}[1]{\oldsubparagraph{#1}\mbox{}}
\fi

\begin{document}

\section{Test!}\label{test}

This is a test of \emph{pandoc}.

\begin{itemize}
\tightlist
\item
  list one
\item
  list two
\end{itemize}

\end{document}  

When we try to convert this final tex file to a docx file, its done appropriately:

pandoc test1.tex -s -o test1.docx  

we get the result as:

but now I have my own tex code named as equation.tex

\documentclass{article}
\usepackage[margin=1in]{geometry}% Just for this example
\usepackage{amsmath}

\begin{document}

\begin{align}
 T_4 &= \langle \underline{k}\,.\,\underline{k}^{*^T} \rangle=
   \left\langle
   \begin{bmatrix}
     |k_1|^2 & k_1k_2^* & k_1k_3^* & k_1k_4^* \\
     k_2k_1^* & |k_2|^2 & k_2k_3^* & k_2k_4^* \\
     k_3k_1^* & k_3k_2^* & |k_3|^2 & k_3k_4^* \\
     k_4k_1^* & k_4k_2^* & k_4k_3^* & |k_4|^2
   \end{bmatrix}
   \right\rangle \\
 &= \frac{1}{2}
   \left[\begin{matrix}
     \langle|S_{XX}+S_{YY}|^2\rangle &
     \langle(S_{XX}+S_{YY})(S_{XX}-S_{YY})^*\rangle &\\
     \langle(S_{XX}-S_{YY})(S_{XX}+S_{YY})^*\rangle &
     \langle|S_{XX}-S_{YY}|^2\rangle & \cdots\cdots\\
     \langle(S_{XY}+S_{YX})(S_{XX}+S_{YY})^*\rangle&
     \langle(S_{XY}+S_{YX})(S_{XX}-S_{YY})^*\rangle & \cdots\cdots\\
     \langle j(S_{XY}-S_{YX})(S_{XX}+S_{YY})^*\rangle &
     \langle j(S_{XY}-S_{YX})(S_{XX}-S_{YY})^*\rangle &
   \end{matrix}\right. \nonumber \\
 & \phantom{{}= \frac{1}{2}}
   \left.\begin{matrix}
     & \langle(S_{XX}+S_{YY})(S_{XY}+S_{YX})^*\rangle
     & \langle -j(S_{XX}+S_{YY})(S_{XY}-S_{YX})^*\rangle\\
     \cdots\cdots& \langle(S_{XX}-S_{YY})(S_{XY}+S_{YX})^*\rangle
     & \langle -j(S_{XX}-S_{YY})(S_{XY}-S_{YX})^*\rangle\\
     \cdots\cdots& \langle|S_{XY}+S_{YX}|^2\rangle
     & \langle-j(S_{XY}+S_{YX})(S_{XY}-S_{YX})^*\rangle\\
     & \langle j(S_{XY}-S_{YX})(S_{XY}+S_{YX})^*\rangle
     & \langle|S_{XY}-S_{YX}|^2\rangle
   \end{matrix}\right]
\end{align}

\end{document}  

And try to convert it to a docx file:

pandoc equation.tex -s -o equation.docx  

I get the result:

This code is fine when used in latex and it does produce the proper pdf file

why doesn't pandoc create the write docx file and it just writes the latex codes in the docx file?