A Ltd. is the asset manager of Fund X (a venture capital fund). A holds 10% of Fund X's units; balance 90% is held by external investors. The external investors appoint a committee for day-to-day administrative activities, but INVESTMENT/DIVESTMENT decisions (the most significant return-driving activity) lie with A Ltd. as the asset manager. Under Ind AS 110:

Para 18 — A Ltd. has power because it directs the relevant activities (investment/divestment). BUT power alone is insufficient for control — the entity must also have exposure to variable returns (10% is small but exists) AND ability to use power to affect returns. Asset-manager-as-agent vs principal analysis: an asset manager with only a modest economic interest may be acting as AGENT (not controlling) — para B58. Further evaluation is required.