TOKYO, Mar 11 (Pulse News Wire) – Kyoto Tool CO.,LTD. (5966.T) announced significant progress in its efforts to prevent recurrence of past issues.
At today's board meeting, the company decided to absorb subsidiaries North Land KTC and H-I TOOL into itself to enhance operational efficiency and strengthen corporate governance. Kyoto Tool established a Group Management Reform Committee last September, chaired by the president, to implement corrective measures. Key actions include improving internal controls at North Land KTC through enhanced inventory management systems and regular audits.
The company also revised intercompany transaction prices twice last year to reflect rising costs but plans further restructuring due to ongoing profitability concerns. To reinforce governance, Kyoto Tool strengthened its audit committee structure, separated executive functions from oversight roles, and mandated external training for new directors to ensure compliance and risk awareness. Regular compliance training programs for all employees are being implemented to foster a culture of integrity across the organization.
🟡 Confidence: Standard AI-translated content.