A STUDY ON

MUNICIPAL BONDS

AT

SHORE INFOTECH INDIA PRIVATE LTD.

Project report submitted in partial fulfillment of the

Requirement for the award of the degree by

OU, Hyderabad-500007

MASTER OF BUSINESS ADMINISTRATION

By

M.ARVIND CHARY
(010-08-120)

PENDIKANTI INSTITUTION OF MANAGMENT

(2008-2010)
 DECLARATION

I here by declare that this project report titled “A STUDY ON MUNICIPAL

BONDS” at “SHORE INFOTECH INDIA Pvt. Ltd.” Submitted by me to the
department of Masters of Business Administration, Pendekanti Institute of
Management, Osmania University is a bonafide work undertaken by me and it is
not submitted to any other university or Institution for the award of any degree
diploma/certificate or published any time before.

Date:

Place: (Signature)
 ABSTRACT
Municipal bonds are a type of bond that is very popular among investors
looking for tax-free income. The interest they earn is not subject to
federal taxes. In this tutorial, you will learn the basic facts about
municipal bonds.

Municipal bonds (nicknamed munis) are bonds issued by states, cities,

counties and various districts to raise money to finance operations or to
pay for projects. The projects they finance include hospitals, schools,
power plants, office building, airports, etc. Municipalities levy taxes as
their first source of revenue. When they need more money (such as when
they overspend), they may turn to issuing bonds as a way to raise extra
money.

Municipals are considered relatively safe from default despite some

adverse notoriety in past years. After they have been issued, they can be
sold to other investors on the secondary market through exchanges or on
the over-the-counter market.

This topic covers how a particular municipal bonds works and chosen
among the securities. This also covers the various types of municipal
bonds which are traded among the market. The purpose of choosing this
topic is to know how it works and useful to the investors. The project is
undertaken for the study of my subject thoroughly while understanding
the different case studies for the better understanding of the investors
and myself.
 ACKNOWLEDGEMENT
I owe my sincere thanks to Mr.G.Samuel, Principal, Pendekanti Institute of
Management, Hyderabad for providing me an opportunity to do the project work as
a part of my MBA course.

I express my sincere gratitude to our Internal Finance Faculty Mrs. K.V. Satya for
her continuous support and assistance throughout my project.

I am grateful to Mr. Krishna Reddy, Managing Director, and Mr. Arun Deep,
Team Leader, Shore InfoTech India Pvt. Ltd. for providing me an opportunity to
do the project in the Organization.

M. Arvind Chary
 TABLE OF CONTENTS

CHAPTER-1 PAGE NO

• INTRODUCTION 1
• OBJECTIVE OF THE STUDY 1
• METHODOLOGY 2
• LIMITATIONS OF THE STUDY 3

CHAPTER -2

• COMPANY PROFILE 4
• INDUSTRIAL PROFILE 9

CHAPTER -3

• AN OVERVIEW OF MUNICIPAL DEBT 12

• AN OVERVIEW OF MUNICIPAL BONDS 15
• TYPES OF BONDS 17
• WORKING ON APPLICATION 30
• RISK AND RETURN ANALYSIS IN MUNICIPAL BONDS 57

CHAPTER -4

• FINDINGS 62
• CONCLUSION 62
• SUGGESTIONS 63
• BIBLOGRAPHY 64
 CHAPTER 1

INTRODUCTION

OBJECTIVE OF THE STUDY

METHODOLOGY

LIMITATION OF THE STUDY

 CHAPTER 2

COMPANY PROFILE

INDUSTRY PROFILE
 CHAPTER 3

AN OVERVIEW ON MUNICIPAL
DEBT

AN OVERVIEW ON MUNICIPAL
BONDS

TYPES OF BONDS

WORKING ON APPLICATION

RISK AND RETURN ANALYSIS

ON MUNICIPAL BONDS
 CHAPTER 4

FINDINGS

CONCLUSION

SUGGESTION

BIBLOGRAPHY