Hi Seenu,
Stateless session beans can have state in their instance variables but they cannot contain state specific to a particular client.
Refer to
EJB 2.0 Specification section 7.8 page #87 which says,
The term �stateless� signifies that an instance has no state for a specific client. However, the instance
variables of the instance can contain the state across client-invoked method calls. Examples of such
states include an open database connection and an object reference to an EJB object.