Tried to resolve the same by following the similar approach however no success.
Below are the settings on IIS which helped resolving the problem.
1. Go to Start | Run.
2. Type inetmgr command to open the IIS Manager.
3. Expand the server name and select the Sales Logix Application pool.
4. Right click and select the Advanced Settings.
5. Set Load User Profile to True.
6. Click on Ok button and apply the settings.
7. Select the SLX Web Reporting application pool and follow the steps 4 to 6.
8. Perform IISRESET.