Hi there

I understand how the ing modifier works in sentences that are not direct or indirect speech sentences. Does the 'ing modifier' function the same way in reported or direct speech sentences? I see lot of sentences in which ing forms(such as 'adding that' and 'noting that') modify the sentence. Given below is an example.

- Regarding Inventories, he explained that at year-end companies work very hard to reduce their inventories so their books look as good as possible at that time, noting that adding inventory in January is not unusual. -

Regards
Chinna