While creating a new report, there are 2 options to begin with:
1. Template
2. Theme

Both appear independent of each other as either one can click Create after selecting Template or Theme. 

It will help to know the difference between the two and when one should select Template versus Theme.

A template defines the default objects that appear in your new report. If all your financial reports need a specific structure, and all of your operating reports have different structure, you would make a template for each.

The theme takes that template structure and applies a specific color theme to it. A good example might if your reports have different colors by region, you could have red text in the header for Haryana, orange for Maharashtra, and purple for Odisha. Another might be different color schemes based on the period your reports are looking at, Historical Current Forecasting.

Hey Paul, 

It is interesting that you used Indian state names in your explanation and made it a more personalized response, hats off to your effort :) 

Regards,