Thanks for your responses but they did not help ! Let me explain my problem in detail.

There is no problem to run the code without any figures in EPS fromat but when I run the code with the EPS format, it says :
 ---------------------------------------------------------------------
Last OS error: No such file or directory
MiKTeX GPL Ghostscript 8.60: Unrecoverable error, exit code 1
---------------------------------------------------------------------

I also tried to google about it and find similar stories in there. But the solutions given in there were also not of much help !

Thanks anyways !