Converting negative net worth into positive - how?

Hi,

A running pvt ltd co. has authorized share capital of inr 1.0 lakh. Its balance sheet shows negative reserves and surplus (about inr 3 lakh). The networth is negative. What steps need to be taken to convert the reserves + surplus to positive? Should the authorized and paid-up capital be increased to inr 3 lakh to bring the reserves and surplus to positive? Does this mean that the bank+cash balance always have 3 lakh throughout the year and beyond?

Thanks.