She said to me, “I have a beautiful watch.” Change into Indirect Speech
She said to me, “I have a beautiful watch.” Change into Indirect Speech
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Indirect Speech: She told me that she had a beautiful watch.
Explanation: When the reporting verb is in the past (said) and the direct speech is in the present indefinite tense (simple present tense), then the indirect (reported) speech will change into the past indefinite tense. Present Indefinite Tense > Past Indefinite Tense.
Here, have is itself a verb and not an auxiliary verb. Hence, the sentence is in simple present tense and not in present perfect tense.
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