UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549
FORM 10-Q

xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

x           QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30,December 31, 2010

OR

oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
o           TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from : Not applicable

Commission file number 0-4454

INTERDYNE  COMPANY
 (Exact(Exact name of registrant as specified in its charter)

CALIFORNIA95-2563023
(State or other jurisdiction of incorporation or organization)(I.R.S.  Employer Identification No.)
26 Briarwood, Irvine, California92604
(Address of principal executive offices)(Zip Code)


Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x  No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filero
o
Accelerated filer
o
Non-accelerated filero
o
Smaller reporting companyx
(do not check if a smaller reporting company)x
(do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes x No o

As of October 30, 2010,January 31, 2011, there were 39,999,942 shares of Common Stock, no par value, issued and outstanding.

Exhibit Index Page No.:  None
 
 
1
 
 
ININTERDYNE COMPANYTERDYNE COMPANY

FORM 10-Q

INDEX


  Page
   
PART I.   FINANCIAL INFORMATION 
   
Item 1.Financial Statements 
   
 
Balance Sheets as of September 30,December 31, 2010 and June 30, 2010
3
   
 
Statements of Operations for the QuartersQuarter and Six Months ended September 30,December 31, 2010 and September 30,December 31, 2009
4
   
 
Statements of Cash Flows for the QuartersQuarter and Six Months ended September 30,December 31, 2010 and September 30,December 31, 2009
5
   
 
Notes to Financial Statements
6
   
Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
9
   
Item 3.
Controls and Procedures
9
   
PART II.  OTHER INFORMATION 
   
Item 6.
Exhibits
10
   
Signatures11

 
2

PARTPart I. FINANCIAL INFORMATION
Financial Information
 
Item 1.
Financial Statements
 
INTERDYNE COMPANY
INTERDYNE COMPANY
BALANCE SHEET
 
  30-Sep-10  30-Jun-10 
  (Unaudited)  (Audited) 
       
ASSETS      
CURRENT ASSETS      
Cash $5,732  $7,807 
Due from affiliate  251,294   246,028 
TOTAL CURRENT ASSETS $257,026  $253,835 
         
LIABILITIES AND STOCKHOLDERS' EQUITY        
CURRENT LIABILITIES        
Accrued professional fees $11,300  $8,450 
Accrued management fees to related party  20,000   18,500 
Other accrued expenses  4,097   4,078 
TOTAL CURRENT LIABILITIES $35,397  $31,028 
         
STOCKHOLDERS' EQUITY        
Preferred stock, no par value, authorized 50,000,000 shares, no shares outstanding
        
Common stock, no par value, 100,000,000 shares authorized, 40,000,000 shares issued and to be issued
 $500,000  $500,000 
Accumulated deficit  (278,371)  (277,193)
TOTAL STOCKHOLDERS' EQUITY $221,629  $222,807 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $257,026  $253,835 
The accompanying notes are an integral part of the financial statements.
  12/31/2010  6/30/2010 
  (Unaudited)  (Audited) 
       
ASSETS      
CURRENT ASSETS      
Cash $9,845  $7,807 
Due from affiliate  246,484   246,028 
TOTAL CURRENT ASSETS $256,329  $253,835 
       
         
LIABILITIES AND STOCKHOLDERS' EQUITY        
CURRENT LIABILITIES        
Accrued professional fees $14,500  $8,450 
Accrued management fees to related party  21,500   18,500 
Other accrued expenses  530   4,078 
TOTAL CURRENT LIABILITIES $36,530  $31,028 
         
STOCKHOLDERS' EQUITY        
Common stock, no par value, 100,000,000 shares authorized, 40,000,000 shares issued and to be issued $500,000  $500,000 
Accumulated deficit  (280,201)  (277,193)
TOTAL STOCKHOLDERS' EQUITY $219,799  $222,807 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $256,329  $253,835 
 
 
3
 
INTEINTERDYNE COMPANYRDYNE COMPANY
STATEMENTS OF OPERATIONS
 
 Quarter Ended  Quarter Ended  Six Months Ended 
 30-Sep-10  30-Sep-09  12/31/2010  12/31/2009  12/31/2010  12/31/2009 
 (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited) 
                  
                  
INCOME                  
Interest earned $5,265  $5,672  $5,191  $5,610  $10,456  $11,281 
                        
EXPENSES                        
General and administrative  4,143   4,080   5,520   4,246   9,664   8,326 
Management Fees  1,500   1,500   1,500   1,500   3,000   3,000 
 $5,643  $5,580  $7,020  $5,746  $12,664  $11,326 
                        
NET (LOSS)/PROFIT BEFORE TAXATION $(378) $92  $(1,829) $(136) $(2,208) $(45)
                        
TAXATION  (800)  (800)  0   0   (800)  (800)
NET LOSS AFTER TAXATION $(1,178) $(708) $(1,829) $(136) $(3,008) $(845)
NET LOSS PER SHARE $(0.0000) $(0.0000) $(0.0000) $(0.0000) $(0.0001) $(0.0000)
 
The accompanying notes are an integral part of the financial statements.
 
 
4
 
INTERINTERDYNE COMPANYDYNE COMPANY
STATEMENTS OF CASH FLOWS
 
  Quarter Ended 
  30-Sep-10  30-Sep-09 
  (Unaudited)  (Unaudited) 
       
CASH FLOWS FROM OPERATING ACTIVITIES      
       
Net loss $(1,178) $(708)
         
Adjustments to reconcile net loss to net cash generated from/(used in) operating activities :
        
Increase/decrease resulting from changes in :        
Due from affiliate  (5,266)  (2,700)
Accrued expense  4,369   4,490 
Total adjustments  (897)  1,790 
         
NET CASH GENERATED/(USED) IN OPERATING ACTIVITIES
  (2,075)  1,082 
         
CASH, BEGINNING OF PERIOD  7,807   208 
         
CASH, END OF PERIOD $5,732  $1,290 
The accompanying notes are an integral part of the financial statements.
  6 Months Ended 
  12/31/2010  12/31/2009 
  (Unaudited)  (Unaudited) 
       
CASH FLOWS FROM OPERATING ACTIVITIES      
       
Net loss $(3,008) $(845)
Adjustments to reconcile net loss to net cash generated from/(used in) operating activities :        
Increase/decrease resulting from changes in :        
Due from affiliate  (456)  1,665 
Accrued expense  5,502   230 
Total adjustments  5,046   1,895 
NET CASH GENERATED/(USED) IN OPERATING ACTIVITIES  2,038   1,050 
         
CASH, BEGINNING OF PERIOD  7,807   208 
         
CASH, END OF PERIOD $9,845  $1,258 
 
 
5
 
INTERDYNEINTERDYNE  COMPANY

NOTES TO FINANCIAL STATEMENTS

Note 1.  Interim Financial Statements

The accompanying financial statements are unaudited, but in the opinion of the management of the Company, contain all adjustments, consisting of only normal recurring accruals, necessary to present fairly the financial position as of September 30,December 31, 2010 and the results of operations for the quarter and six months ended September 30,December 31, 2010 and 2009 and changes in cash flows for the quartersix months ended September 30,December 31, 2010 and 2009.  Certain information and footnote disclosures normally included in financial statements that have been prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission, although management of the Company believes that the disclosures contained in these financial statements are adequate to make the information p resentedi nformation presented therein not misleading.  For further information, refer to the financial statements and footnotes thereto included in the Company's Annual Report in Form 10-K as of June 30, 2010, as filed with the Securities and Exchange Commission.  The results of operations for the quarter ended September 30,December 31, 2010 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending June 30, 2011.

Note 2.  Fair Value Measurements

Determination of Fair Value

At September 30,December 31, 2010, the Company applied fair value to all assets based on quoted market prices, where available. For financial instruments for which quotes from recent exchange transactions are not available, the Company determines fair value based on discounted cash flow analysis and comparison to similar instruments. Discounted cash flow analysis is dependent upon estimated future cash flows and the level of interest rates. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value.

The methods described above may produce a current fair value calculation that may not be indicative of net realizable value or reflective of future fair values. If readily determined market values became available or if actual performance were to vary appreciably from assumptions used, assumptions may need to be adjusted, which could result in material differences from the recorded carrying amounts. The Company believes its methods of determining fair value are appropriate and consistent with other market participants.

However, the use of different methodologies or different assumptions to value certain financial instruments could result in a different estimate of fair value.

Valuation Hierarchy

FASB ASC 820 establishes a three-level valuation hierarchy for the use of fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date:

Level 1.     Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 1 assets and liabilities include debt and equity securities and derivative financial instruments actively traded on exchanges, as well as U.S. Treasury securities and U.S. Government and agency mortgage-backed securities that are actively traded in highly liquid over the counter markets.

 
6

Level 2.     Observable inputs other than Level 1 prices such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs that are observable or can be corroborated, either directly or indirectly, for substantially the full term of the financial instrument. Level 2 assets and liabilities include debt instruments that are traded less frequently than exchange traded securities and derivative instruments whose model inputs are observable in the market or can be corroborated by market observable data. Examples in this category are certain variable and fixed rate non-agency mortgage-backed securities, corporate debt securities and derivativ e contracts.derivative contrac ts.

Level 3.     Inputs to the valuation methodology are unobservable but significant to the fair value measurement. Examples in this category include interests in certain securitized financial assets, certain private equity investments, and derivative contracts that are highly structured or long-dated.

Application of Valuation Hierarchy

A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following is a description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy.

Due from Affiliate.     Market prices are not available for the Company's loan due from an affiliate. As a result, the Company bases the fair value utilizing an internally-developed discounted cash flow model which includes assumptions regarding prepayment, the risk of default and the LIBOR forward interest rate curve. The loan due from the affiliate is carried at lower of cost or fair value and is classified within Level 3 of the valuation hierarchy.

The following table presents the financial instruments carried at fair value as of September 30,December 31, 2010, by caption on the consolidated balance sheet and by FASB ASC 820 valuation hierarchy described above.

Assets measured at fair value on a recurring and nonrecurring basisat September 30, 2010:
 Level 1 Level 2 Level 3 Total carrying value 
Assets measured at fair value on a recurring and nonrecurring basis at December 31, 2010:
 Level 1  Level 2  Level 3  Total carrying value 
Nonrecurring:                        
Loan held for sale  -   -  $251,294  $251,294   -   -  $246,484  $246,484 
                                
Total assets at fair value $-  $-  $251,294  $251,294  $-  $-  $246,484  $246,484 

 
7

Level 3 Gains and Losses

The following table sets forth a summary of changes in the fair value of the Company’s Level 3 assets for the quartersix months ended September 30,December 31, 2010.
LEVEL 3 ASSETS 
Quarter Ended September 30, 2010 
  Due from Affiliate 
    
Balance - July 1, 2010 $246,028 
Advances and (repayments), net  5,266 
Balance - September 30, 2010 $251,294 

Note 3.  Subsequent Events

In accordance with FASB ASC 855 (formerly SAFS No. 165 Subsequent Events) management evaluated all activities of the Company through November 1, 2010 (the issue date of the financial statements) and concluded that no additional subsequent events occurred that would require recognition or disclosure in these financial statements.
LEVEL 3 ASSETS 
Six Months Ended December 31, 2010 
  Due from Affiliate 
    
Balance - July 1, 2010 $246,028 
Advances and (repayments), net  456 
Balance - December 31, 2010 $246,484 

 
8

Item 2.
Item 2. 
Management's Discussion and Analysis of Financial Condition and Results of Operations

The Company is at present dormant and is looking for new opportunities.

The cash needs of the Company will be funded by collections from amount due from its affiliate.


ItemItem 3.
Quantitative and Qualitative Disclosures about Market Risk.

N/A

Item 4.
Item 4. 
Controls and Procedures

Our management, comprising the Chief Executive Officer and the Chief Financial Officer/Principal Accounting Officer, is responsible for establishing and maintaining disclosure controls and procedures for the Company.  It has designed such disclosure controls and procedures to ensure that material information is made known to it, particularly during the period in which this report was prepared.

As of the end of the period covered by this report, our management carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (or Exchange Act)).  Based on this evaluation, as of the end of the period covered by this report, our management has concluded that our disclosure controls and procedures are effective considering the fact that the Company is dormant.

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f).  Our management conducted an evaluation of the effectiveness of our internal control over financial reporting as of September 30,December 31, 2010 based on the criteria set forth in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organization of the Treadway Commission.  Based on this evaluation, our management concluded that our internal control over financial reporting was effective as of September 30,December 31, 2010 considering the fact that the Company is dormant.

Our independent auditors have not audited and are not required to audit this assessment of our internal control over financial reporting for the period covered by this report.

During our most recent fiscal quarter, there has not occurred any change in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 
9

PART II
OTHER INFORMATION

ItemItem 1.  
Legal Proceedings

None

ItemItem 1A.  
Risk Factors.

None

Item 2.  Unregistered Sale of Equity Securities and Use of Proceeds.

None

Item 3.  Defaults upon Senior Securities.
Unregistered Sale of Equity Securities and Use of Proceeds.

None
Item 3.
Defaults upon Senior Securities.
None

Item 4.  
Submission of Matters to a Vote of Security Holders.

None.

Item 5.  
Other Information.

None

Item 6.  Exhibits
Exhibits

a.
a.31.1
31.1 Certification of the Company's Chief Executive Officer, Sun Tze Whang, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

b.
b.31.2
31.2 Certification of the Company's Chief Financial Officer/Principal Accounting Officer, Kit H. Tan, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

c.
c.32
32 Certification of the Company's Chief Executive Officer and Chief Financial Officer/Principal Accounting Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 
10

SISIGNATURESGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


INTERDYNE COMPANY
(Registrant)


Date : November 1, 2010 
INTERDYNE COMPANY
(Registrant)
Date : February 1, 2011By :/s/Sun Tze Whang
Sun Tze Whang
Director /Chief Executive Officer
By :/s/Kit H. Tan
Kit H. Tan
Director /Chief Financial Officer/Principal Accounting Officer
Sun Tze Whang
Director /Chief Executive Officer

By :  /s/Kit H. Tan11
Kit H. Tan
Director /Chief Financial Officer/Principal Accounting Officer
11