Section 301(3) in The Naval Ceremonial, Conditions Of Service And Miscellaneous Regulations, 1964
(3)It shall be within the discretion of the Captain to delay the restoration of a badge if, at the time restoration would normally be due, a sailor has failed to reach the requisite standard of conduct. When restoration of a badge is delayed under this sub-regulation, the continuity of "Very Good" conduct shall be regarded as broken on the date on which the sailor completed six months or twelve months, "Very Good" conduct and a fresh period of qualification commences the following day. This procedure may be repeated until the required standard of conduct is attained. The fact that the restoration of a badge has been delayed shall be noted on the sailor's Recommendations for '[promotion] and Conduct Record Sheet.