Three features of a departmental undertaking are as follows:
1.Part of Government : Departmental Undertaking is a part of the Govt, and is organised as a unit of the concerned ministry. For example, Ministry of Railways is accountable for the working of Diesel Locomotive Work (DLW).
2.Government financing : Since the Govt, fully owns a departmental undertaking, the concerned ministry is responsible for financing it from the budget alloted to it. Its surpluses are also part of the concerned budget.
3.Accounting and audit: Departmental Undertakings are subject to same accounting and audit rule pattern which are relevant for other government department.