features of departmental undertaking

Dear student,

The features of Departmental Undertakings are:
1) These undertakings are financed by the Government budget and their revenue are paid into government treasury.
2) No legal formalities or registration is required in its formation. It is formed by administrative decision of Government.
3) The audit and accounting procedures applicable on government departments are applicable on these undertakings also.
4) These undertakings have high degree of public accountability.
5) The employees of departmental undertakings are civil servants.
6) These undertakings are useful for public utility services.


Regards

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FEATURES ARE-
1. These accounts are not subjected to audit by CAG
2. Government control
3. No motive of profit
4. Most suitable form of government
5. No requirement of registration
6. Heads of parliament elect the other members
7. The revenue is going to national treasure
8. Departmental Undertakings is the backbone of public sector
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