Formatting updates

I have a question, maybe even a stupid one (but thats how I learn :blush:). I see in the file structure there is python script "reports.py" and a directory "reports". 

Say sometimes, somehow there comes a necessity that we have to import something from "reports" directory, than would python look directly in the directory rather than "reports" script ? or will it 1st look in the script and complain that it couldn't find what ever we try to import ? :open_mouth: