Time zones affect escalation matrix

Here I am sharing a strange issue which I came across some days back. I have a simple escalation matrix setup as shown below on my CRM server. Now as per the SageCRM functionality once the case is saved, the escalations are created in the database as soon as case is saved however strangely escalation time being set was not according to the matrix I had designed. It was always running some hours behind.

I checked all the configurations related to Escalations and SLA’s which seemed to be fine, then what might be an issue? I found out that it has nothing to do with the Escalation configurations and the time zone itself was wrong.
Then I went to Administration | System | System Behavior and changed the time zone to the one of my region and wholla escalations are running properly on time now.