In the context of a private limited company, authorised capital refers to the maximum amount of capital that the company is permitted to raise from its shareholders through the issuance of shares. It denotes the total value of shares that the corporation is allowed to distribute to its shareholders. In this situation, because the authorised capital is established at one lakh rupees, the firm can issue shares up to that amount. The company's real capital raised may be less than the authorised capital, and it can be increased or decreased using the necessary legal procedures.