Section 294(2) in The Naval Ceremonial, Conditions Of Service And Miscellaneous Regulations, 1964
(2)If after considering the award of a badge, the Captain decides that the sailor has clearly failed to reach the necessary standard (his decision shall operate as a break in the continuity of "Very Good" conduct) the Captain's decision not towards the badge shall be recorded on the man's Form I.N. 285 in the appropriate column, together with a new date of recommencement of "Very Good" conduct, that is to say, the day after the man qualified for consideration. This shall be entered in red ink and signed by the Captain.
