EXTENSION OF TIME(EOT)
What is Extension of Time (EOT)
The Extension of Time (EOT) initiative is a measure implemented by regulatory authorities in Malaysia to support companies facing difficulties in meeting statutory obligations due to unforeseen circumstances. It is aimed at providing additional time for companies to complete their financial statements, hold Annual General Meetings (AGM), complete statutory documents, and allow audit firms to complete delayed assignments.
Why there is Extension of Time (EOT)
For private companies in Malaysia, audited financial statements must be circulated within six months from the Financial Year End (FYE) and submitted to the SSM within 30 days from the circulation date. However, companies may face challenges in meeting these deadlines due to a variety of reasons, such as business disruptions, health crises, or changes in regulations. In such cases, companies may apply for an Extension of Time (EOT).
What that Extension of Time (EOT) will provide
Under this initiative, companies are eligible for a 90-day extension period to prepare their financial statements, director reports, and audit reports. For instance, if the circulation date of the financial statements is 31 May 2021, the extension period is until 30 August 2021. Similarly, if the lodgment date to SSM is 30 June 2021, the extension period is until 30 September 2021.
How to apply for Extension of Time (EOT)
To apply for an Extension of Time (EOT), the Company Secretary is required to lodge the application form [Section 259(2)] with the SSM. The application must be accompanied by the necessary supporting documents. The SSM will review the application and determine whether the company is eligible for an extension based on the reasons provided by the company and the circumstances surrounding the delay.
It is important to note that an Extension of Time (EOT) does not exempt the company from its obligation to file its financial statements or statutory documents but provides additional time to do so. Failure to meet the extended deadline may result in penalties or other consequences as prescribed by the relevant laws and regulations. Therefore, it is essential for companies to make timely and accurate applications for Extension of Time (EOT) and ensure compliance with all statutory requirements.