API error ORG ID is invalid

Getting 'API error ORG ID is invalid' when calling API as below, is the API still checking whether org passed as a parameter is the value on the profile for the current responsibility? I am trying torun this in a loop from certain responsibility, thought should be OK as I passed all parameters and initializing  fine. Please help :

                mo_global.init('AR');

                mo_global.set_policy_context('S',b_org_id);

Fnd_Global.apps_initialize (user_id => 1093--interface user FND_GLOBAL.USER_ID

                                                                ,resp_id => l_resp_id

                                                                ,resp_appl_id => 222

                                                        ,security_group_id => 0);

apps.AR_RECEIPT_API_PUB.create_misc(