Hi Srinu
Did you manage to figure this out yourself? If you search you will find CUA cookbooks and other material that explains the CUA setup
In relation to the "Profile does not exist" (and useful hints masquerading as hints), you need to run the user compare job (button links of SU01 roles or profiles tab as well as SCUA transaction) to update the tables in CUA that hold the references of roles and profiles that exist for each child system.
If you cannot run this job or attempt to use transactions SCUA or SCUG for the child system and receive a connection error then you need to work with Basis to check the CUA setup. If you happen to be the Basis Administrator then you need to go back to basic training and read up on ALE, RFC and CUA setups to see where it failed (most times it's either trusted RFC or system user in RFC connection being locked or not existing or authorisation error)
In relation to your comment below about "you cannot logon to system" for your test user - again this is the fundamentals of CUA and some slight differences to standalone. You need to assign the CUA system to the system tab of the test user. Logon checks will look at USR02 on a standalone to make sure users is not locked, in validity, etc but with CUA it also checks out the system tab assignment to make sure the user does not exist for CUA purposes only (differentiates between the user being a CUA account or an actual Solman account).
In short, go back to your basics on CUA. It's been around 10+ years so you'll find your answers out there
Regards
Colleen