Section 329(1)(b) in The Naval Ceremonial, Conditions Of Service And Miscellaneous Regulations, 1964
(b)"Very Good" conduct is not governed by a sailor's character as assessed on his service certificate, except as in clause (c) of sub-regulation (2) and, subject to the provisions of the following rules, the latter part of a year for which a character lower than "VG." has been awarded may be regarded by the Commanding Officer as a period of "Very Good" conduct.