DIrect & reported Speech! :--))

Direct speech is usually in the dialogue form. When we talk to a person we address them directly. Asking them and hearing their replies or vice - versa. when we put it down on paper, we write the person's name followed by a colon (:) and write the speech in dialogue form that is enclosed it within quotations / inverted commas.

Lakshmi:  "Hi P! How are you?"
P:  "I'm fine Lakshmi. I didn't see you for the past couple of days, where had you been?"

Like this! It can be in the formal or the informal mode.

Now for reported speech. This is what we find in newspapers. Whatever has been a part of a meeting, conversation or speech is reported to us.

Now, Mr.X would have said something like, "We / I will take strict action against people who are found smoking in theatres, restaurants or other public places. Such nonsense won't be tolerated." But when it is converted into reported speech, it sounds like this:
Mr.X said that an action will be taken against people found smoking in public places.

Lakshmi:  "Where are you going?"
Ashwin:    "I'm going to cycle."

That was direct speech.

Lakshmi asked Ashwin where he was going. Ashwin replied that he was going to cycle. Now we can also do away (avoid) that from the above sentence, it's not compulsory.

Note that the verb changes in Reported Speech is different from the one that's used in Direct Speech.

simple present → simple past                  will → would

past → past perfect                                  can → could

present perfect → past perfect

This is true if the action is complete, while if the action is still going on or is set in future, the same verb could be used.