The timezones are out of sync on kickstarted machines

Prereqs: 
Knowledge of hos to kicktstart thorugh the Web UI
A User X with a bunch of kickstart profiles + systems ready to be kickstarted

1) Login as X
2) Systems -> Kickstart -> Profiles
3) From the list select a KS profile
4) System Details -> Locales, 
5) Select a time zone -> Asia/Novobirsk .. 
6) Select 'Hardware Clock uses UTC'
7) Select Update Locate preferences.
8) Using this profile Kickstart a system (by scheduling & using rhn_check)
9) After the system has been kickstarted successfully .. SSh to the system and
on the command line type 
% date
note down the sync time
Compare that with http://www.timeanddate.com/worldclock/city.html?n=375
Notice they are totally out of sync....