Guess I figured out what the problem is. Although the name is set to Bombay the 
time zone was set to PKT, hence the time was showing up according to Karachi, 
Pakistan time.
To fix it I had to select Asia/Kolkata as the time zone.
Did not realize this earlier, thinking that setting Bombay will automatically 
select the IST zone.

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Time Difference between EDT and IST
https://bugs.launchpad.net/bugs/212371
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