Section 319(5) in The Naval Ceremonial, Conditions Of Service And Miscellaneous Regulations, 1964
(5)The actual character assessment to be given to any sailor shall be at the discretion of the Commanding Officer subject to the maximum assessments prescribed in Regulations 320 to 325 and to any inferior assessment already approved following conviction by the civil power. Any assessment which is below the maximum allowable, for example, "Good" when "V.G." or "V.G.*" is permissible or "Fair" when "Good" is permissible, shall be underlined by the Commanding Officer in order that there may be no question that the assessment has been made advisedly. When considering such discretionary assessments the Commanding Officer shall bear in mind that(a)any discretionary assessment involves a break in the continuity of the sailor's "Very Good" conduct and therefore has an adverse effect on the award or restoration of badges, and on [promotion] [Substitued by S.R.O. 361, dated 10th November, 1975](b)a "Good" assessment unless awarded within the first three years of pensionable service shall render the sailor ineligible to be considered, on completion of time for minimum pension, for the award of the Long Service and Good Conduct Medal with or without gratuity;(c)a "Fair" or lower assessment shall render a sailor ineligible to be considered, for all time, for the award of the long service and good conduct medal with or without gratuity.