PDF Encryption: encrypted string with 0x0D gives error in Acrobat.

I am generating enrypted PDF using Standard password security handler with CFM "AESV3" i.e 256-bit AES. The issue is that if encrypted string  in the PDF contains byte 0x0D i.e "CR", Acrobat  9/X  does not understand it. The part/object of PDF with which such string is associated  behaves erroneously.  If string does not have 0x0D byte in it , it works fine. As per the PDF spec 1.7, string can have standalone CR byte.

Any help is appreciated.

Thanks.