MIRA INFORM REPORT

Report Date :

27.12.2014

IDENTIFICATION DETAILS

Name :	DVTEL INC.
Registered Office :	65 Challenger Road, Ste 2, Ridgefield Park, NJ 07660
Country :	United state
Date of Incorporation :	03.08.2000
Legal Form :	Corporation – Profit
Line of Business :	Designs, manufactures, and supplies security solutions for video surveillance applications in transportation hubs, city centers, nuclear and power facilities, corporations, educational institutions, and government facilities.
No. of Employee :	70

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
United state	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

UNITED STATE ECONOMIC OVERVIEW

The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $49,800. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets. US firms are at or near the forefront in technological advances, especially in computers and in medical, aerospace, and military equipment; their advantage has narrowed since the end of World War II. The onrush of technology largely explains the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. Since 1975, practically all the gains in household income have gone to the top 20% of households. Since 1996, dividends and capital gains have grown faster than wages or any other category of after-tax income. Imported oil accounts for nearly 55% of US consumption. Crude oil prices doubled between 2001 and 2006, the year home prices peaked; higher gasoline prices ate into consumers' budgets and many individuals fell behind in their mortgage payments. Oil prices climbed another 50% between 2006 and 2008, and bank foreclosures more than doubled in the same period. Besides dampening the housing market, soaring oil prices caused a drop in the value of the dollar and a deterioration in the US merchandise trade deficit, which peaked at $840 billion in 2008. The sub-prime mortgage crisis, falling home prices, investment bank failures, tight credit, and the global economic downturn pushed the United States into a recession by mid-2008. GDP contracted until the third quarter of 2009, making this the deepest and longest downturn since the Great Depression. To help stabilize financial markets, in October 2008 the US Congress established a $700 billion Troubled Asset Relief Program (TARP). The government used some of these funds to purchase equity in US banks and industrial corporations, much of which had been returned to the government by early 2011. In January 2009 the US Congress passed and President Barack OBAMA signed a bill providing an additional $787 billion fiscal stimulus to be used over 10 years - two-thirds on additional spending and one-third on tax cuts - to create jobs and to help the economy recover. In 2010 and 2011, the federal budget deficit reached nearly 9% of GDP. In 2012 the federal government reduced the growth of spending and the deficit shrank to 7.6% of GDP. Wars in Iraq and Afghanistan required major shifts in national resources from civilian to military purposes and contributed to the growth of the budget deficit and public debt. Through 2011, the direct costs of the wars totaled nearly $900 billion, according to US government figures. US revenues from taxes and other sources are lower, as a percentage of GDP, than those of most other countries. In March 2010, President OBAMA signed into law the Patient Protection and Affordable Care Act, a health insurance reform that was designed to extend coverage to an additional 32 million American citizens by 2016, through private health insurance for the general population and Medicaid for the impoverished. Total spending on health care - public plus private - rose from 9.0% of GDP in 1980 to 17.9% in 2010. In July 2010, the president signed the DODD-FRANK Wall Street Reform and Consumer Protection Act, a law designed to promote financial stability by protecting consumers from financial abuses, ending taxpayer bailouts of financial firms, dealing with troubled banks that are "too big to fail," and improving accountability and transparency in the financial system - in particular, by requiring certain financial derivatives to be traded in markets that are subject to government regulation and oversight. In December 2012, the Federal Reserve Board (Fed) announced plans to purchase $85 billion per month of mortgage-backed and Treasury securities in an effort to hold down long-term interest rates, and to keep short term rates near zero until unemployment drops below 6.5% or inflation rises above 2.5%. In late 2013, the Fed announced that it would begin scaling back long-term bond purchases to $75 billion per month in January 2014 and reduce them further as conditions warranted; the Fed, however, would keep short-term rates near zero so long as unemployment and inflation had not crossed the previously stated thresholds. Long-term problems include stagnation of wages for lower-income families, inadequate investment in deteriorating infrastructure, rapidly rising medical and pension costs of an aging population, energy shortages, and sizable current account and budget deficits

Source : CIA

Company name and address

DVTEL INC.

Address: 65 Challenger Road, Ste 2, Ridgefield Park, NJ 07660 - USA

Telephone: +1 201-368-9700

Fax: +1 201-368-2615

Website: www.dvtel.com

Corporate ID#: 3267420

State: Delaware

Judicial form: Corporation – Profit

Date incorporated: August 3, 2000

Stock: -

Value: -

Name of manager: Yoav STERN

ACTIVITIES & OPERATIONS

IST

Business:

DVTEL, INC. designs, manufactures, and supplies security solutions for video surveillance applications in transportation hubs, city centers, nuclear and power facilities, corporations, educational institutions, and government facilities.

It offers Intelligent Security Operations Center, which includes Latitude network video management system, an IP-based video surveillance system; mentor screen recording system that provides non-invasive view of various networked PC; Latitude V6 video analytics solutions, which detect threats and distribute intelligent alerts in real-time; and CaseBuilder incident reporting and management system, an evidence and risk management tool. The company also provides intelligent video IP cameras with video analytics that are combined with ioimage video analytics and technology; network video recorders; and video encoders with video analytics with built-in self-sustained video analytics for automated detection and autonomous tracking of intruders, suspicious baggage, stopped vehicles, and removed items.

In addition, it offers adaptive visualization technology products, such as SceneTracker that provides real-time perspective of various camera images in a single integrated view; and Layer Monitoring that enables users to see through walls. Further, the company provides edge-based devices, including IP and network cameras, encoders, audio intercoms, and CCTV keyboards.

Furthermore, it offers professional engineering services.

The company provides its products through resellers.

The company was founded in 2000 and is headquartered in Ridgefield Park, New Jersey with additional offices in New Jersey, Florida, Texas, Illinois, California, Massachusetts, Mexico, the United Kingdom, India, Australia, China, Singapore, and the Middle East.

Office of the Foreign Assets Control (OFAC):

The company is not listed on the OFAC list.

The Specially Designated Nationals (SDN) List is a publication of OFAC which lists individuals and organizations with whom United States citizens and permanent residents are prohibited from doing business.

No name of foreign suppliers available.

EIN: 52-2261809

Staff: 70

Operations & branches:

At the headquarters, we find a showroom, workshop and office.

SHAREHOLDERS & MANAGERS

Shareholders:

This is a private Company.

Management:

Yoav Stern has been the Chief Executive Officer and President of DVTel, Inc. since February 2011. Mr. Stern is the Founder of Kellstrom Industries Inc. and serves as its Principal. Mr. Stern serves as an Executive in a variety of high-tech companies. He has 20 years of management experience as Chief Executive Officer and/or Executive Chairman and President. He worked with large international corporations and investment firms in the Homeland Security Industry including as the President and Chief Executive Officer of a $70M multi-national company. Mr. Stern served as an Acting Chief Executive Officer of Magal Security Systems Ltd. from March 1, 2009 to May 2009 and served as its Acting President until May 2009. From March 1995 to August 1995, he served as a Co-chief Executive Officer and Co-president of Bogen Communications International Inc.

Prior to August 1995, Mr. Stern served as a Co-chief Executive Officer of Bogen's predecessor company. He served as Chairman of Kellstrom Industries Inc. from June 1995 to July 2002 and as its Co-Chairman and Chief Executive Officer from December 1993 to June 1995.

From December 1993 to June 1995, Mr. Stern served as a Co-President of Kellstrom Industries Inc. From January 1993 to September 1993, Mr. Stern served as the Chief Operating Officer and President of WordStar International, Inc. He served as Vice President of Business Development of Elron Electronic Industries Ltd. until 1994. Mr. Stern served in the Israeli Air Force for ten years as an F-15, A-4, Mirage and Kfir Fighter Pilot, Avionics Systems Officer, Commander of Operational Training Unit and a Deputy Squadron Commander and was involved in management and operations of highly advanced avionics and aerospace technologies. He spent 20 years in reserve services in the Israeli Air Force. Previously, he was a Founding and Managing Partner of Helix Capital. He served as the Executive Chairman of the Board of Kellstrom Aerospace LLC. He has been a Non-executive Co-Chairman of Bogen Communications International Inc. since 1997. Mr. Stern served as a Co-Chairman of Bogen since November 1997. Mr. Stern serves as a Director of Euro-Trade Bank Limited, located in Tel-Aviv, Israel. He has been a Director of Bogen Communications International Inc. since August 1995 and DVTel, Inc. since February 2011. He served as a Director of Kellstrom Industries Inc. since December 1993. From January 1992 to May 1995, he served as a Director of WordStar International, Inc. He is an Investor.

Mr. Stern earned a Practical Engineering Diploma in Advanced Mechanics and Automation from ORT Technological College, Israel in 1973, graduated from the Israel Air Force Academy in 1975 and received a B.S. in Mathematics and Computer Science from Tel Aviv University in 1985.

He is a graduate of the Air Force Flying Instructors' course with Distinction.

Zvi PELED has been Chief Operating Officer and Chief Product Officer at DVTel, Inc. since April 9, 2013.

Tomer PINCHAS is the CFO.

As far as we know, they are not involved in other local corporations.

Subsidiaries

And partnership:

DVTEL UK LTD.

7 Lancaster Court, Coronation Road, High Wycombe, HP12 3TD - UK

DVTEL INDIA Pvt., LTD.

303, SSR Corporate Park, Mathura Road, Faridabad – 121002, Haryana, India

DVTEL Mexico S.A.P.I. de C.V

Felipe Villanueva No. 10, Col. Guadalupe Inn, México, D.F. 01020

and others.

FINANCIALS

In United States, privately held corporations are not required to publish any financials.

On a direct call, a financial assistant controlled the present report but deferred any financials.

We sent a fax but no answer received.

Outside sources (bank) gave estimate sales for year 2013 in the range of

USD 30,000,000=

The business is profitable.

Banks: Wells Fargo Bank

…

LEGAL FILINGS

Legal filings & complaints:

As of today date, there is no legal filing pending with the Courts.

Secured debts summary (UCC): None

COMPANY CREDIT HISTORY

Trade references:

Date reported: December 2014

High credit: USD 15,000

Now owing: 0

Past due: 0

Last purchase: November 2014

Line of business: Office supply

Paying status: 5 days beyond terms

Date reported: December 2014

High credit: USD 200,000

Now owing: 0

Past due: 0

Last purchase: November 2014

Line of business: Payroll

Paying status: As agreed

Date reported: December 2014

High credit: USD 800

Now owing: 0

Past due: 0

Last purchase: November 2014

Line of business: Telecommunications

Paying status: 3 days beyond terms

Domestic credit history:

Domestic credit history appears as follow:

Monthly Payment Trends - Recent Activity

Date	Balance	Current	Up to 30 DBT	31-60 DBT	61-90 DBT	>90 DBT
07/14	$77,400	100%	0%	0%	0%	0%
08/14	$260,900	95%	5%	0%	0%	0%
09/14	$212,100	74%	26%	0%	0%	0%
10/14	$160,300	56%	44%	0%	0%	0%
11/14	$227,000	78%	22%	0%	0%	0%
12/14	$227,800	77%	23%	0%	0%	0%

National Credit Bureaus gave a medium credit rating.

According to our credit analysts, during the last 6 months, domestic payments were made with an average of 5+ days beyond terms.

Other comments:

The Company is developing a strong business.

The Company is in good standing.

This means that all local and federal taxes were paid on due date.

The risk is low.

Our opinion:

A business connection may be conducted.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.63
UK Pound	1	Rs.98.98
Euro	1	Rs.77.74

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	ANK

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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