What is it?
timesrv.exe is a time synchronization utility from the original Windows NT 4.0 server resource kit.

Virus risk?
unfortunately timesrv.exe is associated with the W32.Spybot.DNC worm

What does it do?
W32.Spybot.DNC is a worm that may be remotely controlled via IRC channels.

When the worm is executed it copies itself to the windows system folder as timesrv.exe

The worm has the ability to perform distributed denial of service (DDoS) attacks and open a backdoor on the infected computers. It also attempts to steal CD keys from some computer games.

More info and Removal instructions
@symantec