The festival is called "Gudi Padwa" in Maharashtra; it heralds the advent of new year and is one of the most auspicious days for Maharashtrians. It is customary to erect ‘Gudis’ on the first day (Padwa) of the Marathi New Year. 'Gudi' is a bamboo staff with a colored silk cloth and a garlanded goblet atop it, which symbolizes victory or achievement. Hence, this day is known as “Gudipadwa” in Maharashtra. The New Year is ushered in with the worship of the "Gudi" and the distribution of a specific "Prasad" comprising tender neem leaves, gram-pulse and jaggery. The symbolism of tastes is the same as what is described above. Also in many Maharashtrian homes they celebrate the occasion by making Shrikhand Puri.
The Gudhi :
Gudhi Padwa is especially dedicated to the worship of Lord Brahma. Many legend states that this festival is celebrated to commemorate the corronation of Rama after his return to Ayodhya from 14 years of exile. Some Maharashtrians see the gudhi as a symbol of victory associated with the conquests of the Maratha forces lead by the great hero Chhatrapati Shivaji Maharaj. Gudhi is also displayed as they are expected to ward off evil and invite prosperity and good luck into the house.Ghudi is also symbol of victory of Shalivahana over Sakas, which people hoisted when he returend to Paithan. The gudhi, Brahma’s flag (Brahmadhvaj) is hoisted in every house as a symbolic representation of Rama’s victory and happiness on returning to Ayodhya after slaying Ravan. Since a symbol of victory is always held high, so is the gudhi (flag). A bright green or yellow cloth adorned with brocade (zari) is tied to the tip of a long bamboo over which gathi (a type of sweet), neem leaves, a twig of mango leaves and a garland of red flowers is tied. This is then hoisted by placing a silver or copper pot placed in the inverted position over it. Beautiful designs with special powder of soft, white stone (rangolis) are drawn on the floor in front of it. Everyone eagerly waits to usher in the new year. Then uttering meaning, ‘I offer obeisance to the flag of Lord Brahma’ one should ritualistically worship the gudhi with a resolve. Since Lord Brahma created the universe on this day, this flag is called ‘the flag of Brahma’ (Brahmadhvaj) in the scriptures. Some also refer to it as ‘the flag of Indra’ (Indradhvaj). On Gudhi Padwa, you will find gudhi hanging out of window or otherwise prominently displayed in traditional Maharashtrian households.
Position of the Gudhi :
The Gudhi is raised next to the main entrance of the house. The spot selected should be on the right side (when sighted from the house) of the entrance. The right side symbolizes active state of the soul.
Source : http://www.aryabhatt.com/fast_fair_festival/Festivals/Ugadi.htm
