11.8 Nataja Mumbai Ltd. (A). Nataja Mumbai Ltd., the Indian subsidiary of a Belgian corporation, is a car- diothoracic instruments manufacturer. Nataja manu- factures the instruments primarily for the medical industry globally-though with recent advances in car- diovascular surgery, its business has begun to grow rap- idly. Sales are primarily to hospitals based on Europe and Asia. Nataja Mumbai's balance sheet in thousands of Indian Rupees (INR) as of March 31 is as follows: Nataja Mumbai Ltd. Balance Sheet, March 31, thousands of Indian rupees Assets Liabilities and Net Worth Cash INR26,000 Accounts INR11,000 payable Accounts 38,000 Bank loans 70,000 Receivable Inventory 46,000 Common 20,000 stock Net plant and Retained equipment 65,000 earnings 74,000 INR175,000 INR175,000 Exchange rates for translating Nataja Mumbai's bal- ance into euros are: INR79.19/ April 1st exchange rate after 25% devaluation. INR59.39/ March 31st exchange rate, before 25% devaluation. All inventory was acquired at this rate. INR50.00/ Historical exchange rate at which plant and equipment were acquired. Using the data presented, assume that the Indian rupee dropped in value from INR59.39/ to INR79.19/ between March 31st and April 1st. Assuming no change in the balance sheet between these two days, calculate the gain or loss from trans- lation by both the current rate method and the tem- poral method. Explain the translation gain or loss in terms of change in the value of the exposed accounts