A WHOLLY-OWNED subsidiary of AA Group Holdings has been charged with an offence under the Workplace Safety & Health Act and is expected to be fined up to S$130,000.

On Wednesday, the company, which produces and supplies loudspeaker parts, said that Engineering Manufacturing Services (EMS) had failed to take sufficient preventive measures to ensure the safety of workers of the contractor, Poh Huat Heng Corporation, in carrying out painting works at a factory in the Pioneer area in Singapore.

"EMS has since implemented risk mitigation measures and enhanced the safe work procedures to prevent the occurrence of similar incidents in the future," AA Group said.

The company added that the incident will not have an adverse impact on the financial position of the group.

The next court hearing is scheduled for May 10.

AA Group closed unchanged at S$0.033 on Wednesday.