Hi Shamir,
Ready folder is the rigth location of the syndicated files. You can check it in the uide as well: SAP NetWeaver Master Data Management (MDM) 7.1 – SAP Help Portal Page -> MDM Console Guide -> MDSS -> Syndication File Location
So your MDSS works fine. PI searches for files in the Ready folder also. If PI doesnt take the file, then it is not beacuse the files are in wrong location but bcause of something else.
Best regards,
Gábor