I resolved this issue by following changes:-
1) Changed log4j.properties to log4j.xml.
2) Added jboss-deployment-structure.xml under web-inf folder.
3) jboss was unable to write velocity log on server and failing there. I added the following line of code(highlighted in bold)in my application.context after that it started working fine.
<bean id="velocityEngine" class="net.genworth.ltc.fiveseries.util.VelocityInitializer"
init-method="init">
<property name="velocityProperties">
<map>
<entry key="resource.loader" value="class"></entry>
<entry key="class.resource.loader.class"
value="org.apache.velocity.runtime.resource.loader.ClasspathResourceLoader"></entry>
<entry key="runtime.log.logsystem.class"
value="org.apache.velocity.runtime.log.SimpleLog4JLogSystem"></entry>
<entry key="class.resource.loader.modificationCheckInterval"
value="0"></entry>
</map>
</property>
</bean>