I opened countries.shp in Udig, and opened the north arrow also. In this case there was no problem. For testing I chose India and north arrow was perfect in EPSG:4326(default for countries.xml). But when I changed the projection to EPSG:3110, the map and the north arrow rotated, but the behaviour was not as expected. The north arrow is showing the direction that is not north according to the map. I did some manupulations from JTS azimuth function and found that, the north arrow was not correct. See the snaps attached.