Unable to boot from on-chip RAM

I have just discovered that the on-chip memory was successfully configured by the hex software image. The only problem was that NiosII was not running from the reset location. This is how I found it out. I programmed the EPCS with a hardware/software image where the code is meant to display "I am LCD" to the LCD display. Upon power-up I don't see this display. I then changed the code to display "I am GCD". I then downloaded the elf through JTAG. I can see that during this process NiosII executed the existing software code! I could see the original software output "I am LCD". During this process SBT downloaded the new software image to the on-chip RAM. And after some time I could see the output of the new code "I am GCD". Does this give any hint. I feel that somehow NiosII is not able to start-off from the beginning of on-chip RAM, upon power-up.