Ind AS 103 defines control as the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
Examples of control include:
1.Ownership of more than 50% of voting rights: When an entity owns more than 50% of the voting rights in another entity, it is presumed to have control over the other entity. For example, if Company A owns 60% of the voting rights in Company B, it is presumed to have control over Company B.
2.Control over board of directors: When an entity has the power to appoint or remove the majority of the board of directors of another entity, it has control over the other entity. For example, if Company A has the power to appoint or remove five out of seven directors of Company B, it has control over Company B.
3.Control over key management: When an entity has the power to direct the key management personnel of another entity, it has control over the other entity. For example, if Company A has the power to hire or fire the CEO of Company B, it has control over Company B.
4.Special rights: When an entity has special rights that give it the power to govern the financial and operating policies of another entity, it has control over the other entity. For example, if Company A has a veto right over the major strategic decisions of Company B, it has control over Company B.
