If it was just one machine, I would have blamed it on hardware, but there are multiple ubuntu machines - combo of desktop and servers which are falling behind. They are loosing around 2 minutes every day.
For the desktop machines (12.10), automatically update time from internet is checked and still loosing time. Not sure how to check the settings for server editions.
Some servers are virtual machines hosted on windows box. Windows box has right time, but servers don't.
I would like to know if automatic time update is really working. If so, which server its referring to get its time entries. How do I find out which server is sending the wrong time information.