Section 294(6) in The Naval Ceremonial, Conditions Of Service And Miscellaneous Regulations, 1964
(6)A sailor who has received one or more minor punishments not involving a break in the continuity of his "Very Good" Conduct during the two years immediately preceding the award may nevertheless be deemed worthy of a badge, if his general conduct and bearing are of the requisite standard. Conversely, although a sailor may not have been punished, the Captain might, in certain circumstances, consider him below the requisite standard.