It seems that the Table Input Step in the Ktr is not able to read the data.
Firstly, if you are calling a ktr file from Java code, make sure that the database driver jar files is properly imported/build inside the Java project. I mean import the "sqlserver" database jar file in the java project.
You may try reading this blog. I have used Maven to handle dependency of jars (my db was : postgresql). And it works :)
Hope this helps :)