ITDN Interdyne Company (CE)

INTERDYNE COMPANY

N OTES 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 at March 31, 2008 and the results of operations for the quarter and nine months ended March 31, 2008 and 2007 and changes in cash flows for the nine months ended March 31, 2008 and 2007. 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 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-KSB as of June 30, 2007, as filed with the Securities and Exchange Commission. The results of operations for the quarter ended March 31, 2008 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending June 30, 2008.

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.

As of the end of the period covered by this report, the Company’s Chief Executive Officer, Sun Tze Whang, and The Company’s Chief Financial Officer, Kit Heng Tan, have evaluated the effectiveness of the Company’s disclosure controls and procedures and in their opinions, considering the fact that the Company is dormant, the Company’s disclosure controls and procedures ensure that material information relating to the Company is made known to them by others who have dealings with the Company, particularly during the period in which this report is being prepared, so as to allow timely decisions regarding required disclosure. To the knowledge of Sun Tze Whang and Kit Heng Tan, considering the fact that the Company continues to remain dormant, there have been no significant changes in the Company’s internal controls or in other factors that could significantly affect the Company’s internal controls subsequent to the date of evaluation, and as a result, no corrective actions with regard to significant deficiencies or material weakness in our internal controls were required.

6