Exists return no value even though the image is present on the screen

Hi All,

I am new to Sikuli, I have an image say 1.png which i took a screenshot using the sikuli-IDE.
The exists method always returns no value for this image though it is present on the screen. I use exists in other screens and that returns the appropriate value. I also added a wait of 5 sec just incase sikuli doesnt have the required time to find the image.

Code:
If exists(<image of 1.png>):
        do something
else:
        do something
wait(5)

The else loop only is hit always for this image.

Any help in this regards would be gr8.

Thanks
Dj