'ing modifier' after the reported/direct sentence

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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
Source: — Sentence Correction |

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by GMATGuruNY » Sat Feb 02, 2013 11:01 am
Chinn_asama wrote: The economist explained that at year-end companies work very hard to reduce their inventories, noting that adding inventory in January is not unusual.
This sentence would not be valid on the GMAT.
On the GMAT, COMMA + VERBing modifies the IMMEDIATELY PRECEDING CLAUSE.
The agent of the VERBing modifier should be the SUBJECT of the immediately preceding clause.
Here, COMMA + NOTING is immediately preceded by the following clause: companies work very hard.
Since the subject of this clause is companies, the grammatical implication is that the COMPANIES are NOTING.
Not the intended meaning.
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