by a second treaty, signed on 1 march 1768 the nizam acknowledged the validity of shah alam's grant and resigned the circars to the company, receiving as a mark of friendship an annuity of 50,000. finally, in 1823, the claims of the nizam over the northern circars were bought outright by the company, and they became a british possession. the circars were incorporated into madras presidency, and the godavari district was constituted, which included the present-day east godavari and west godavari districts.