Error messages found from the installation logs:

1) Final Result: Installation failed with error code: (0x800B0001), "Unknown trust provider. " (Elapsed time: 0 00:00:12).

2) Windows update could not be installed because of error 2359302 "" (Command line: "wusa.exe "D:\7176a536af72f98249ad\Windows6.1-KB958488-v6001-x64.msu" /quiet /norestart")

3) MSI (s) (8C:EC) [09:34:30:829]: Product: Microsoft .NET Framework 4 Client Profile -- Error 1330. A file that is required cannot be installed because the cabinet file “<Path>\netfx_core.mzz”  has an invalid digital signature.  This may indicate that the cabinet file is corrupt.  Error 1 was returned by WinVerifyTrust.

While working on the issue it was found that the Digital Signature tab was missing from the file properties page.

File Properties page

We also noticed an error in the Windows Update shown as WindowsUpdate_800B0001

Searching for this error lead to the following page:
http://windows.microsoft.com/is-is/windows7/windows-update-error-800b0001

As per the steps motioned in the above page we tried to use the System Update Readiness Tool available at the following page.

http://support.microsoft.com/kb/947821

The  System Update Readiness Tool was able to fix the Windows Update related issue and that was in turn able to resolved the .Net Framework 4.0 installation issue.

Content By : Keshav Jain.