The shares of Arshiya International 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.

Mumbai-based Arshiya International recorded the fall after some media reports suggested that some former employees were involved in financial irregularities. 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.

Employees claim that the management asked as many as 290 people to leave the company without notice and payment of their dues. The company management has responded by saying that the allegations are baseless.