Vision - Alibaba

148 Annual Report 2007
Notes to the Financial Statements
32 COMMITMENTS (Continued)
(c) Other commitments — sales and marketing expenses
2007 2006
RMB’000 RMB’000
No later than 1 year 1,981 4,633
33 RELATED PARTY TRANSACTIONS
Parties are considered to be related if one party has the ability, directly or indirectly, to control the other
party or exercise signifi cant infl uence over the other party in making fi nancial and operating decisions.
Parties are also considered to be related if they are subject to common control or common signifi cant
infl uence.
Except as disclosed elsewhere in the consolidated fi nancial statements, the following transactions were
carried out with related parties:
(a) Deed of indemnity
On October 19, 2007, a deed of indemnity was entered into between the ultimate holding company
and the Company whereby the ultimate holding company has undertaken to the Company that it
will indemnify and at all times keep the Company fully indemnifi ed on demand in connection with,
among others, (i) any taxation falling on the Group prior to the listing of the shares of the Company
on the Stock Exchange to the extent that specifi c provision has not been made nor disclosed in the
Prospectus and/or other conditions as specifi ed in the deed of indemnity; (ii) all losses, damages,
costs and expenses of any nature arising out of or related to liabilities not expressly assumed by the
Group upon the transfer of the assets and liabilities of the B2B business from AliPay E-commerce
Corp. and Zhejiang Alibaba E-commerce Co., Ltd. to the Group pursuant to the Reorganization (Note
1.1); and (iii) all losses, damages, costs, expenses and liabilities of any nature, in excess in aggregate
of US$2.0 million (RMB15.0 million), related to legal proceedings arising at any time relating to the
conduct of a fellow subsidiary’s business prior to the listing date of the shares of the Company on the
Stock Exchange on November 6, 2007. As of December 31, 2007, no indemnity was effected.