In direct speech the original words of person are narrated (no change is made) and are enclosed in quotation mark. While in indirect speech some changes are made in original words of the person because these words have been uttered in past so the tense will change accordingly and pronoun may also be changed accordingly. In indirect speech the statement of the person is not enclosed in quotation marks, the word “that” may be used before the statement to show that it is indirect speech. Indirect speech is also called reported speech because reported speech refers to the second part of indirect speech in which something has been told by a person.
Reporting verb: The verb first part of sentence (i.e. he said, she said, he says, they said, she says,) before the statement of a person in sentence is called reporting verb.