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Default OFFSET COLUMN() ROW() - what does this mean?

I have a formula which I'm trying to get my head around

OFFSET('Daily Datasheet'!$B$1,ROW()-ROW($AL$4)-5,$AM$3+COLUMN()-COLUMN($AL$4))

Can someone explain what each part means? I get what OFFSET does, just not sure how ROW and COLUMN fit into it..

Thanks..
 
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