Both material nature and the living entity, which were existing before the creation of the cosmos, are explained in this verse. Whatever is created is but a combination of the living entity and material nature. There are many manifestations like trees, mountains and hills which are not moving, and there are many existences which are moving, and all of them are but combinations of material nature and the superior nature, the living entity. Without the touch of the superior nature, the living entity, nothing can grow. The relationship between material nature and spiritual nature is eternally going on, and this combination is effected by the Supreme Lord; therefore He is the controller of both the superior and inferior natures.
(Bhagavad-Gita-----13:27-----purport).

Śrī Vyāsadeva says herein that the manifested internal potency is real, whereas the external manifested energy in the form of material existence is only temporary and illusory like the mirage in the desert. In the desert mirage there is no actual water. There is only the appearance of water. Real water is somewhere else. The manifested cosmic creation appears as reality. But reality, of which this is but a shadow, is in the spiritual world. Absolute Truth is in the spiritual sky, not the material sky. In the material sky everything is relative truth. That is to say, one truth depends on something else. This cosmic creationresults from interaction of the three modes of nature, and the temporary manifestations are so created as to present an illusion of reality to the bewildered mind of the conditioned soul, who appears in so many species of life, including the higher demigods, like Brahmā, Indra, Candra, and so on. In actuality, there is no reality in the manifested world.
(Srimad Bhagavatam-----1:1:1-----purport).

The chief engineer of a complicated construction does not personally take part in the construction, but he knows every nook and corner because everything is done under his direction. He knows everything about the construction, both directly and indirectly. Similarly, the Personality of Godhead, who is the supreme engineer of this cosmic creation, knows every nook and corner, although affairs are apparently being carried out by demigods. Beginning from Brahmā down to the insignificant ant, no one is independent in the matter of material creation, for the hand of the Lord is seen everywhere. All material elements as well as all spiritual sparks emanate from Him only. And whatever is created in this material world is but the interaction of two energies, the material and the spiritual, which emanate from the Absolute Truth, the Personality of Godhead, Śrī Kṛṣṇa. A chemist can manufacture water in the chemical laboratory by mixing hydrogen and oxygen.
(Srimad Bhagavatam-----1:1:1-----purport).

And the materials with which he works are also supplied by the Lord. The Lord knows everything directly and indirectly, and He is cognizant of all minute details, and He is fully independent. He is compared to a mine of gold, and the cosmic creations in so many different forms are compared to objects made from the gold, such as gold rings, necklaces and so on. The gold ring and the gold necklace are qualitatively one with the gold in the mine, but quantitatively the gold in the mine is different. Therefore, the Absolute Truth is simultaneously one and different. Nothing is absolutely equal with the Absolute Truth, but at the same time, nothing is independent of the Absolute Truth.
(Srimad Bhagavatam-----1:1:1-----purport).

The impersonal cosmic situation is also Mukunda because it is the emanation of the energy of Mukunda. For example, a tree is a complete unit, whereas the leaves and the branches of the tree are emanated parts and parcels of the tree. The leaves and branches of the tree are also the tree, but the tree itself is neither the leaves nor the branches. The Vedic version that the whole cosmic creation is nothing but Brahman means that since everything is emanating from the Supreme Brahman, nothing is apart from Him. Similarly, the part-and-parcel hands and legs are called the body, but the body as the whole unit is neither the hands nor the legs. The Lord is the transcendental form of eternity, cognition and beauty. And thus the creation of the energy of the Lord appears to be partially eternal, full of knowledge and beautiful also. The captivated conditioned souls under the influence of the external energy, māyā, are therefore entrapped in the network of the material nature.
(Srimad Bhagavatam-----1:5:20-----purport).

Each and every part of His transcendental body can perform each and every function of the other parts. This is confirmed in the Brahma-saṁhitā (5.32): aṅgāni yasya sakalendriya-vṛttimanti. In Bhagavad-gītā (14.3) also, the same principle is confirmed: mama yonir mahad-brahma tasmin garbhaṁ dadhāmy aham. When the cosmic creation is manifested, the living entities are directly supplied from the Lord; they are never products of material nature. Thus, no scientific advancement of material science can ever produce a living being. That is the whole mystery of the material creation. The living entities are foreign to matter, and thus they cannot be happy unless they are situated in the same spiritual life as the Lord. The mistaken living being, out of forgetfulness of this original condition of life, unnecessarily wastes time trying to become happy in the material world. The whole Vedic process is to remind one of this essential feature of life.
(Srimad Bhagavatam-----3:5:26-----purport).

The cosmic creation is working under the influence of the three modes of the external potency of the Lord. Different creatures are also under the same influence, and therefore they cannot act concertedly in satisfying the Lord. Because of this diverse activity, there cannot be any harmony in the material world. The best policy, therefore, is to act for the sake of the Lord. That will bring about the desired harmony.
(Srimad Bhagavatam-----3:5:48-----purport).

The elements of cosmic creation are all matter and have no potency to increase in volume unless entered into by the Lord in His plenary portion. This means that matter does not increase or decrease unless it is spiritually touched. Matter is a product of spirit and increases only by the touch of spirit. The entire cosmic manifestation has not assumed its gigantic form by itself, as wrongly calculated by less intelligent persons. As long as spirit is within matter, matter can increase as needed; but without the spirit, matter stops increasing. For example, as long as there is spiritual consciousness within the material body of a living entity, the body increases to the required size, but a dead material body, which has no spiritual consciousness, stops increasing. In Bhagavad-gītā (Chapter Two) importance is given to the spiritual consciousness, not the body. The entire cosmic body increased by the same process that we experience in our small bodies. One should not, however, foolishly think that the individual infinitesimal soul is the cause of the gigantic manifestation of the universal form. The universal form is called the virāṭ-rūpa because the Supreme Lord is within it in His plenary portion.
(Srimad Bhagavatam-----3:6:5-----purport).

When cotton is transformed into thread, the cotton is no longer visible, and when the thread is woven into cloth, the thread is no longer visible. Similarly, it is perfectly correct that when the seed that had generated from the navel of Garbhodakaśāyī Viṣṇu became manifested as the cosmic creation, one could no longer understand where the cause of the cosmic manifestation is. Modern scientists have tried to explain the origin of creation by a chunk theory, but no one can explain how such a chunk might have burst. The Vedic literature, however, explains clearly that the total material energy was agitated by the three modes of material nature because of the glance of the Supreme Lord. In other words, in terms of the chunk theory, the bursting of the chunk was caused by the Supreme Personality of Godhead. Thus one must accept the supreme cause, Lord Viṣṇu, as the cause of all causes.
(Srimad Bhagavatam-----7:9:34-----purport).

All these actions of śuddha-sattva display the potencies of Mahā-saṅkarṣaṇa, who is the ultimate reservoir of all individual living entities who are suffering in the material world. When the cosmic creation is annihilated, the living entities, who are indestructible by nature, rest in the body of Mahā-saṅkarṣaṇa. Saṅkarṣaṇa is therefore sometimes called the total jīva. As spiritual sparks, the living entities have the tendency to be inactive in the association of the material energy, just as sparks of a fire have the tendency to be extinguished as soon as they leave the fire. The spiritual nature of the living being can be rekindled, however, in association with the Supreme Being. Because the living being can appear either in matter or in spirit, the jīva is called the marginal potency.
(Sri Caitanya Caritamrta-----1:5:41-----purport).

The glancing power of the Lord agitates the entire cosmic energy, and thus its actions begin at once. This indicates that matter, however powerful she may be, has no power by herself. Her activity begins by the grace of the Lord, and then the entire cosmic creation is manifested in a systematic way. The example of a woman's conception can help us understand this subject to a certain extent. The mother is passive, but the father puts his energy within the mother, and thus she conceives. She supplies the ingredients for the birth of the child in her womb. Similarly, the Lord activates material nature, which then supplies the ingredients for cosmic development.
(Sri Caitanya Caritamrta-----1:5:51-----purport).

The power is generated at a powerhouse under the control of an expert living being. Similarly, behind all the jugglery of the natural laws is a great living being, who is a person like the mechanical engineer in the powerhouse. It is by His intelligence that the entire cosmic creation moves in a systematic way.
The modes of nature, which directly cause material actions, are also originally activated by Nārāyaṇa. A simple example will explain how this is so: When a potter manufactures a pot from clay, the potter's wheel, his tools and the clay are the immediate causes of the pot, but the potter is the chief cause. Similarly, Nārāyaṇa is the chief cause of all material creations, and the material energy supplies the ingredients of matter. Therefore without Nārāyaṇa, all other causes are useless, just as the potter's wheel and tools are useless without the potter himself.
(Sri Caitanya Caritamrta-----1:5:51-----purport).

The goddess Durgā is the superintending deity of this material world, which is made of material elements. The demigods are simply different directors engaged in operating the departments of material activities, and they are under the influence of the same material energy. Kṛṣṇa's internal potencies, however, have nothing to do with the creation of this cosmic material world. The spiritual world and all spiritual activities are under the direction of the internal, spiritual energy, and such activities are performed by Yogamāyā, the spiritual energy. Yogamāyā is the spiritual or internal energy of the Supreme Personality of Godhead. Those who are interested in being promoted to the spiritual world and engaging in the service of the Lord attain spiritual perfection under the control of Yogamāyā. Those who are interested in material promotion engage in ritualistic religious ceremonies and economic development to develop sense gratification. They ultimately attempt to merge into the impersonal existence of the Lord. Such people generally become impersonalists.
(Sri Caitanya Caritamrta-----2:8:90-----purport).

This is the chief qualification of the Supreme Personality of Godhead when He assumes a particular incarnation. Kṛṣṇa tells Arjuna that although they both took birth many, many times before, Kṛṣṇa remembers everything about His previous appearances but Arjuna does not remember. Since Kṛṣṇa is beyond the cosmic creation, He is in the exalted position of being able to remember everything in the past. Everything within the cosmic creation has a material body, but Kṛṣṇa, being beyond the material cosmic creation, always has a spiritual body. He imparted Vedic knowledge into the heart of Brahmā. Although Brahmā is the most important and exalted personality within this universe, he could not remember what he did in his past life. Kṛṣṇa had to remind him through the heart. When Lord Brahmā was thus inspired, he was able to create the entire universe. Remembering everything about the past and inspiring Lord Brahmā to create are vivid examples of the characteristics called svarūpa-lakṣaṇa and taṭastha-lakṣaṇa.
(Sri Caitanya Caritamrta-----2:20:359-----purport).

Everything manifested within this cosmic world is but the energy of the Supreme Lord. As fire situated in one place spreads its illumination and heat all around, so the Lord, although situated in one place in the spiritual world, manifests His different energies everywhere. Indeed, the whole cosmic creation is but various manifestations of His energy.”
Lord Caitanya continued citing the Viṣṇu Purāṇa (6.7.61): “The Supreme Lord's original energy is transcendental and spiritual, and the living entities are part and parcel of that energy. There is a third energy, however, called the material energy, which is covered by the cloud of ignorance.” This energy, which is material nature, is divided into three modes, or guṇas (goodness, passion and ignorance).
(Teachings of Lord Caitanya).

The purpose of the material manifestation is to give the conditioned souls a chance to become liberated and return to the āśraya-tattva, or the Absolute Truth. Since everything in the cosmic creation, which is manifested by Kṛṣṇa's Viṣṇu expansions, is dependent on the āśraya-tattva, the various demigods and manifestations of energy, the living entities, and all material elements are dependent on Kṛṣṇa, for Kṛṣṇa is the Supreme Truth. Thus Śrīmad-Bhāgavatam indicates that everything is sheltered by Kṛṣṇa directly and indirectly. Consequently perfect knowledge can be had only by an analytical study of Kṛṣṇa, as confirmed in the Bhagavad-gītā.
(Teachings of Lord Caitanya).

When it is created, the earthen pot is made of earth, water, fire, air and sky, while it remains it is the same in composition, and when it is broken and annihilated its different ingredients are conserved in different parts of the material energy. Similarly, at the creation of this cosmic manifestation, during its maintenance and after its dissolution, everything is but a different manifestation of My energy. And because the energy is not separate from Me, it is to be concluded that I am existing in everything.
“In the same way, the body of a living being is nothing but a composition of the five elements, and the living entity embodied in the material condition is also part and parcel of Me. The living entity is imprisoned in the material condition on account of his false conception of himself as the supreme enjoyer.
(Krsna Book).

The living entity has a small material body taken in various species and forms, and similarly the whole universe is but the material body of the Supreme Personality of Godhead. This body is described in the śāstras as virāṭ-rūpa. As the individual living entity maintains his particular body, the Supreme Personality of Godhead maintains the whole cosmic creation, entering within it. As soon as the individual living entity leaves the material body, the body is immediately annihilated, and similarly as soon as Lord Viṣṇu leaves the cosmic manifestation, everything is annihilated. Therefore only when the individual living entity surrenders unto the Supreme Personality of Godhead is his liberation from material existence possible. This is confirmed in the Bhagavad-gītā: mām eva ye prapadyante māyām etāṁ taranti te (B.G.7:14). Surrendering unto the Supreme Personality of Godhead, and nothing else, is therefore the cause of liberation.
(Krsna Book).