any establishment, not any branch or expension, which is newly set ub is exempted from paying bonus to its employees in the first five years, employer can be exempted for the next two year if he is not gaining profit, but he gains profit in the first five year he has to pay bonus to its employees, After seven years if employer does not gain any profit, he is bound to pay minimum bonus ie 8.33% to its employees & bonus has to be distributed to employees within eight months from the closing of financial year.