Sathya joins school at Bukkapatnam. Sathya`s divinity starts manifesting. His teacher asks him to stand on the bench to undergo punishment. The Teacher is stuck to his chair as long as Sathya is standing. Teacher wants to slap with the cane on Sathya`s palm. He sees Shirdi Sai on Sathya`s Palm! Sathya disguises as lady dancer who was to perform on School Day and performs stupendous task. Nobody recognises him as Sathya! His dramatic talents manifests here. Sathya announces to his mother, "I have come here to carry the water of life to everyone."