Hi Chaitesh Lekurwale...
You can have Multiple Database ,Maintaining separate databases for each legal entity is sometimes required for legal/tax reasons. I don't know where you are based.
You can also check with these threads
http://scn.sap.com/thread/760895
http://scn.sap.com/thread/1155033
http://scn.sap.com/thread/951556
Hope Helpful
Regards
Kennedy