Thanks all for your responses. The issue was solved by myself and it was due to buffering settings of SID tables in our system. As the SID tables were fully duffered, the new SIDs which are created in the table are not reflected in the buffer and hence the error. We have deactivated the buffer and it is working fine. SAP notes 912174 and 550784 explain about this issue. Thanks.
Regards,
Usha.