Hi Suresh,
On a normal BS on ASE installation you should just have the SYB_BACKUP server.
I would suggest to drop the SYB_BACKUP2 server using isql command line tool (logged as "sapsa" user):
use master
go
sp_dropserver SYB_BACKUP2
go
The error 7215 that appears on the ASE error log use to indicate that the Backup Server is down.
Startup of the Backup Server will be done automatically when using startdb or startsap. TO start it manually you have to run on command line the "run" file: ./RUN_SID_BS
The ^M message you are having seems to indicate that the file has been copied/edited from Windows OS. You'll see it if you edit the RUN_SID_BS file, you can then replace the ^M as mentioned Ajith or just delete it manually.
Regards,
Victoria.