Thanks for your response. Please find the details below.Kindly assist
The below are the software�??s/applications details
A)Development Workstation
[INDENT]OS:  Windows 7 Enterprise 64-bit, Version 6.1 (Build 7601) Sp1[/INDENT]
[INDENT]Note: Computer name does not contains _ or space[/INDENT]
[INDENT]ArcGIS Version:   10.1  (EDN)  Components Installed as below:  [/INDENT]
[INDENT]1.ArcGIS Server for Enterprise 10.1 (EDN),  [/INDENT]
[INDENT]2.ArcSDE 10.1 for Oracle10g  (sp1)[/INDENT]
[INDENT]3.ArcGIS Desktop 10.1 (sp1)[/INDENT]
[INDENT]Oracle Client: 10.2.0.5[/INDENT]
 
B)Database Server:  (Separate server)
[INDENT]Database: Oracle 10g (10.2.0.5) 64 bit [/INDENT]
[INDENT]OS: Linux 64bit[/INDENT]
Note:
Service never worked before, this is the first time install
No logs generated in SDEHOME\etc\ folder
C) Sdeservice list
C:\>sdeservice -o list
SDE service Information
--------------------------------------------------------------------
RDBMS:              Oracle
Name:                 ArcSde Service(esri_sded)
SDEHOME: C:\Program Files\ArcGIS\ArcSDE\ora10gexe\
Version:              10.1
Status:                 SERVICE_STOPPED
D) What has been tried so far???
1- Installed ArcGIS Server 10.1 and authenticated successfully, followed by installed  as below
2- Installed Oracle Client (10.2.0.5) and Created Local Service named GISD, tested the sqlplus from command prompt working fine.
3- Created a SDE Service
        C:\>sdeservice -o create -d ORACLE,GISD -p sde10d -i esri_sded
        Error creating SDE Service(esri_sded).
        Database service OracleServiceGISD doesn't exist.
        Use option -n to exculde OracleServiceGISD from ArcSde dependent service.
4- Recreated create service using �??n option
      C:\>sdeservice -o create -d ORACLE,GISD -p sde10d -i esri_sded -n
      Copying contents of C:\Program Files\ArcGIS\ArcSDE\ora10gexe\\etc\dbinit.sde to
      C:\Program Files\ArcGIS\ArcSDE\ora10gexe\\etc\dbinit.sde.backup.
      Successfully created and registered esri_sded service
5- Since Oracle & ArcSDE in different machine altered dbinit.sde file changed 
    set ORACLE_SID=GISD  to  set LOCAL=GISD
6- Verified environment below variables 
       ORACLE_HOME = C:\app\useraccount\product\11.2.0\client_1\
       ORAHOME = C:\app\useraccount\product\11.2.0\client_1\
       SDEHOME =  C:\Program Files\ArcGIS\ArcSDE\ora10gexe\
7- Started the SDE service
          C:\>sdemon -o start -i esri_sded -p sde10d
          Error starting esri_sded service(1053)
          Could not start ArcSDE -- Check Network, $SDEHOME disk, DBMS settings and dbinit.sde.