UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



FORM 10-QSB





[xx]

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2004



Commission file Number:  0-50608



PACIFIC ALLIANCE VENTURES LTD.

(Exact name of small business issuer as specified in its charter)



Nevada

(State or other jurisdiction of incorporation or organization)



98-0414501

(I.R.S. Employer Identification Number)



Suite C102, 10000 North 31st Avenue

Phoenix, Arizona   85051   USA

(Address of principal executive offices)



(602)252-4477

(Issuer's telephone number)





State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date:

9,905,100 common shares as at March 31, 2004



Transitional Small Business Disclosure Format (check one):  Yes [  ]    No [ X ]





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PACIFIC ALLIANCE VENTURES LTD.





INDEX



PART 1.

FINANCIAL INFORMATION



Item 1.

Financial Statements



Balance Sheet as of March 31, 2004



Statement of Operations for the period ended

March 31, 2004



Statements of Cash Flows for the period ended

March 31, 2004



Notes to Consolidated Financial Statements



Item 2

Plan of Operation



Item 3

Controls and Procedures



PART II.

OTHER INFORMATION



Item 1

Legal Proceedings



Item 2

Changes in Securities



Item 3

Defaults Upon Senior Securities



Item 4

Submission of Matters to a Vote of Security Holders



Item 5

Other Information



Item 6

Exhibits and Reports on Form 8K





SIGNATURES





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PACIFIC
ALLIANCE VENTURES LTD.

BALANCE
SHEET

March
31, 2004

(Unaudited)







|                           |                                                             |                                                       |                         | ASSETS                                     |                        
|-------------------------- | ----------------------------------------------------------- | ----------------------------------------------------- | ----------------------- | ------------------------------------------ | -----------------------
|Current
      Assets       |                                                            
|                           | Cash                                                        |                                                       | $
              118,724
|                           |                                                             |                                                       |                         | LIABILITIES
      AND STOCKHOLDERS' EQUITY |                        
|Current
      Liabilities  |                                                            
|                           | Taxes
      payable                                         | $
                     649                           
|Stockholders'
      Equity |                                                            
|                           | Common
      stock, par value $.001, authorized 100,000,000 |                                                      
|                           |                                                             | shares;
      issued and outstanding 9,905,100 shares | 9,905                  
|                           | Additional
      paid-in capital                            | 87,018                                               
|                           | Retained
      earnings                                     | 21,488                                               
|                           |                                                             |                                                       |                         |                                            | 118,411                
|                           | Stock
      subscriptions receivable                        | (336)                                                
|                           |                                                             |                                                       |                         |                                            | 118,075                
|                           |                                                             |                                                       |                         |                                            | $
              118,724







See Notes to
Financial Statements

1



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PACIFIC
ALLIANCE VENTURES LTD.

STATEMENT
OF OPERATIONS

For
the Three Months Ended March 31, 2004

(Unaudited)



|Revenues,
      marketing income                           | $
                       - 
|---------------------------------------------------------- | ---------------------------
|Expenses                                                   |                            
|                                                           | Professional
      services
|                                                           | Salaries                   
|                                                           | Tax
      and licenses     
|                                                           | Other                      
|                                                           |                            
|Basic
      and diluted net loss per common share          | $
                   (0.00)
|Weighted
      average number of common shares outstanding | 9,905,100                  













See Notes to
Financial Statements



2

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PACIFIC
ALLIANCE VENTURES LTD.

STATEMENT
OF STOCKHOLDERS' EQUITY

For
the Period From January 1, 2004 to March 31, 2004

(Unaudited)



|                                         |           |  |                         |  | Common
      Shares    |  | Common
      Stock     |         | Additional
      Paid-in Capital |  | Retained
      Earnings |         | Stock
      Subscriptions Receivable |  | Total
      Stockholders' Equity
|---------------------------------------- | --------- |  | ----------------------- |  | ---------------------- |  | ---------------------- | ------- | -------------------------------- |  | ----------------------- | ------- | ------------------------------------ |  | --------------------------------
|                                        
|                                        
|                                        
|                                        
|Balances,
      December 31, 2003        | 9,905,100 |  | $
                9,905 |  | $
              87,018 |  | $
              31,353 |         | $
              (5,000)          |  | $
            123,276  
|Cash
      received on subscribed common |           |  |                         |  |                        |  |                        |         |                                  |  |                        
|                                         | stock     |  |                         |  |                        |  |                        |         |                                  |  | 4,664                   |         | 4,664                               
|Net
      loss                           |           |  |                         |  |                        |  |                        | (9,865) |                                  |  |                         | (9,865)
|Balances,
      March 31, 2004           | 9,905,100 |  | $
                9,905 |  | $
              87,018 |  | $
              21,488 |         | $
                 (336)         |  | $
            118,075  











See Notes to
Financial Statements



3

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PACIFIC
ALLIANCE VENTURES LTD.

STATEMENT
OF CASH FLOWS

For
the Three Months Ended March 31, 2004

(Unaudited)



|Cash
      Flows From Operating Activities |                                                                             
|------------------------------------------ | ----------------------------------------------------------------------------
|                                           | Net
      loss                                                              
|                                           | Adjustment
      to reconcile net loss to net cash from operating activities
|                                           |                                                                             
|                                           |                                                                             
|Cash
      Flows From Financing Activity   |                                                                             
|                                           | Cash
      received on subscribed common stock                              
|                                           |                                                                             
|Cash
      at the beginning of the period  | 130,393                                                                     
|Cash
      at the end of the period        | $
              118,724                                                     
|Cash
      paid for income taxes           | $
                  8,117                                                   





See Notes to
Financial Statements



4



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NOTES
TO FINANCIAL STATEMENTS







Note
1.  Organization and Significant Accounting Policies



Organization



Pacific
Alliance Ventures Ltd. ("the Company") was formed October 20, 2003 and
is a marketing and advertising service provider.  The Company designs
marketing and advertising campaigns for corporate clients wishing to increase
awareness of their products, services, corporate image and general corporate
branding.



The
Company conducts its business through offices in Phoenix, Arizona, and
Vancouver, British Columbia, and intends to gradually increase its availability
to corporate clients across North America.  The Company works with a number
of freelance designers, writers, and editors who enable the Company to react to
customer demands without the need to incur large fixed overhead costs.



The
Company's offices are currently provided on a rent free basis by the President
and Chief Executive Officer of the Company.  Due to limited Company
operations, any facilities expenses are not material and have not been
recognized in these financial statements.



The
Company designs marketing and branding campaigns in conjunction with its clients
and relies on its ability to custom-design marketing solutions in response to
client's needs to secure additional business.



Interim
Period Financial Statements



The
interim period financial statements have been prepared by the Company pursuant
to the rules and regulations of the U.S. Securities and Exchange Commission (the
"SEC").  Certain information and footnote disclosure normally
included in financial statements prepared in accordance with accounting
principles generally accepted in the United States have been condensed or
omitted pursuant to such SEC rules and regulations.  The interim period
financial statements should be read together with the audited financial
statements and accompanying notes included in the Company's audited financial
statements for the period ended December 31, 2003.  In the opinion of the
Company, the unaudited financial statements contained herein contain all
adjustments necessary to present a fair statement of the results of the interim
period presented.



Revenue
Recognition



As
marketing service agreements are relatively short-term in nature, revenue is
recognized when agreements are complete.  Any costs incurred on agreements
in process are deferred until the agreement is complete.  Also, any advance
payments from customers are deferred until the agreement is complete.
 Completion of marketing service agreements occurs when the customer has
approved and accepted the advertising materials.

5

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Earnings
per Share



Basic
loss per share is computed by dividing net income or loss available to common
shareholders by the weighted average number of common shares outstanding in the
period.  Diluted earnings per share takes into consideration common shares
outstanding (computed under basic earnings per share) and potentially dilutive
common shares.  There were no potentially dilutive securities during the
period ended December 31, 2003.



Comprehensive
Income



There
are no reconciling items between the net loss presented in the Statements of
Operations and comprehensive loss as defined by SFAS No. 130, "Reporting
Comprehensive Income."



Stock-Based
Compensation



The
Company has no stock-based compensation arrangements.  Should it enter into
these types of arrangements, the Company intends to follow the recognition and
measurement principles of APB Opinion No. 25,"Accounting for Stock Issued
to Employees," and related interpretations.  Compensation cost for
stock options granted to non-employees will be measured using the Black-Scholes
valuation model at the date of grant multiplied by the number of options
granted, amortized over the estimated life of the option.  This
compensation cost will be recognized ratably over the vesting period.





6

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PLAN OF OPERATIONS



Our current working capital of approximately $118,000 is sufficient to fund the continuing operations and expansion of our business for the next 12 months.  It is also sufficient to pay the expenses associated with our reporting company obligations including increased accounting and legal fees.



We do not anticipate requirement for major capital expenditures during the next 12 months related to our ongoing business.  We do not conduct research and development and subcontract all actual production. Existing casual relationships with freelance designers and editors and their attendant costs are expected to remain constant.  We have sufficient office space to accommodate existing and expanded operations for the next 12 months.



Contract employees are hired as needed.  There are no immediate plans to hire permanent employees.  We do not store goods in warehouses as this is a function performed by the commercial printers whom we engage to produce and distribute our advertising materials.



The following is a discussion of our general plan of operation for the next 12 months.  This plan of operation will be implemented by our C.E.O. and is based on her prior experience in the publishing and marketing industries.



Our primary target market is mid-sized companies trying to build brand, product and/or service recognition for their products, services, and companies.  These mid-sized companies are large enough to be able to fund significant marketing efforts, yet small enough to be aware that they need to differentiate themselves from their competitors in order to excel in their particular market sectors.



Because of the size and evolution of our clients, they usually do not have more than one person in their own companies devoted to marketing and promotions.  They are aware of their marketing needs, but not able to fulfill those needs internally.  This is different from larger companies that frequently are capable of designing and fulfilling their marketing and advertising requirements in-house; or smaller companies that are not sufficiently large to develop the budgets required for effective direct marketing campaigns.



Thus, our services fit a real need for marketing expertise.  Our attention to detail and custom-designed advertising programs are generally beyond the capabilities of any of our clients to perform in-house.  Because of this custom-designed marketing approach, our gross profit margins are higher than generic advertising approaches, and can reach levels of 30% or more depending on individual circumstances.



Our potential clients can exist in any business sector that relies on an appeal to individual retail customers or end-users of a product or service, or in any business that wishes to improve their public image or build their brand awareness in their particular marketplace.  For this reason, our clients could span virtually all business sectors.



Growth



We are a young company although we have seasoned professionals as management.  In our next 12 months of operation, our primary focus will be to solidify our market share in the Southwest United States.  Our secondary focus will be to initiate our business presence in new geographic regions in other areas of North America, initially through an internet build-up, and eventually through the opening of additional sales offices.



Management expects to be able to maintain current creative control and head office functions in our existing Phoenix office.  Because our business model currently relies on strong and diverse relationships

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with various subcontractors and freelance professionals, we believe we can accommodate expected growth rates with little or no requirements for additional capital or infrastructure.



Our rate of expected growth cannot be determined because it relies in large part on the general strength of the overall economy and the advertising and marketing needs of divergent sectors within the broader economy.  Fundamentally, it is the rates of growth and sales of our clients that determines our potential growth rate.  Eventually our rate of growth could slow, based on the demands upon the time of our key personnel.  If our revenue and project growth exceeds the capacity of current management to properly execute future marketing projects, then we will need to determine whether to engage additional full time senior management at that time.



Management considers its current ability to provide exceptional customer service with creative intellectual capital to be our strongest asset.  As long as we continue to deliver these attributes to clients, we believe our business can grow successfully.



Sales and Payment



All significant marketing projects commence when a sizable deposit has been made by the client.  We do not incur significant external expenses, nor do we contractually expose ourselves to significant external expenses with subcontractors, until such time as performance payments from our clients are received.  Thus, we generally are not exposed to significant cash flow risks.



As marketing service agreements are relatively short-term in nature, revenue is recognized when agreements are complete.  Expenses such as printing and postage are not incurred until our client has submitted progress payments to cover such expenses.  Revenue received is not refundable to the client and we do not make performance claims that could expose us to future liabilities.



Inventory and Shipping



We do not warehouse any kind of inventory because we provide mainly intellectual services, with actual finished goods provided by subcontractors.  Delivery of advertising medium is generally achieved via U.S. Post.



Item 3 - Controls and Procedures



Our C.E.O. and C.F.O. have concluded that our controls and other procedures designed to ensure that information required to be disclosed in reports that we submit under the Securities Exchange Act of 1934, is recorded, processed, summarized and reported within the time periods specified in the Commission's rules and forms are effective, based upon their evaluation of these controls and procedures as of a date within 90 days of the filing date of this Form 10-QSB.



There were no significant changes in our internal controls or in other factors that could significantly affect those controls subsequent to the date of this evaluation, including any corrective actions with regard to significant deficiencies and weaknesses.



PART II

OTHER INFORMATION



Item 1.

LEGAL PROCEEDINGS



None

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Item 2

CHANGES IN SECURITIES



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 AND REPORTS ON FORM 8-K



(a)

Exhibits



31.1

Section 302 Certification of Chief Executive Officer

31.2

Section 302 Certification of Chief Financial Officer

32

Section 906 Certification



(b)

Reports on Form 8-K



None



SIGNATURES



In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



PACIFIC ALLIANCE VENTURES LTD.





Dated:  May 14, 2004

Per:

/s/Gerald R. Tuskey



Gerald R. Tuskey,

C.F.O., Secretary, Treasurer and Director