I understand that this question has been raised and closed before.
https://scn.sap.com/thread/3564115
However, the answers provided there haven't really helped me solve my issue.
As mentioned in the previous discussion, the prerequisite test fails in Windows version.
I am using Windows 7, windows server 2008 R2 and I do not have any other version of crystal reports installed.
Rightly as Ludek sir pointed out, my setuplog shows the following:
S-Bank(0x008BE928)::setV create $os.version with 6.1-WORKSTATION
I am attaching the screenshot of my log.
Please help me with a workaround. Thankyou