The shares of Arshiya International have fallen about 20 per cent following reports that the company has fired some senior management members due to reports of financial irregularities.

The shares of the company fell drastically and touched its lower circuit following reports suggesting certain financial irregularities in the company. A total of a whooping 16.94 lakh shares exchanged until this afternoon compared to a two-week daily average volume of 29,000 shares. The shares of the company fell to touch a lower circuit limit of 20 per cent to Rs 97.40, which is its lowest level in about a year.

The employees were reportedly sacked by the management of the company on Saturday. The company has fired several senior level employees on allegation that they were involved in shrinking order-book concerns. One of the sacked employees accused the promoters of the company of trying to mislead the investors by showing a healthy profile of the company. It has also been alleged that the salaries of employees have not been paid since September, 2012.

The company said in a statement that, "There have been some news items in some sections of the press on January 9, regarding operations and affairs of the company which are misleading and not true. Further, the company has clarified that it has taken a call on rationalising its employee costs/ removing non-performers in the overall interest of the company."