Hello Prasad,
please read SAP note 498074 -->last sentence
to avoid the seperate folder for each single role.
one additional hint:
If you do not want to modify the composite role menu, simply do not merge the single role menus, but leave it empty. Users get then the single role menus.
Advantage: every change of a single role menu is valid immediately and you do not need to update the composite role menu.
b.rgds, Bernhard