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Have just found out that the answer to my above question lies in MOS Note - 157702.1. ie. limit set to DEFAULT implies that the limit value for DEFAULT profile for that resource name applies. While this question stands answered, it is more appropriate if this explanation is embedded alongside the documentation on profiles, in addition to a standalone document in MOS.
Thank you very much for catching this, Rakesh. I'm the author of the Database Security Guide. I'll update it to include this information. I believe this may also affect the 11.1 version of the book, so I'll update that one as well.
Thanks a lot, Pat.
I possibly hastily posted it on the forum, but some digging into MOS revealed the answer. If you're able to incorporate this into the Security Guide, guess it would be best !