Section 321(1) in The Naval Ceremonial, Conditions Of Service And Miscellaneous Regulations, 1964
(1)The privilege of a "VG.*" character is granted in order that a sailor may not, by one slip, forfeit the rewards due to an otherwise unblemished record. The Commanding Officer may assess a sailor's character as "V.G.*" once during the sailor's career, notwithstanding that an assessment of "V.G." has been precluded by one of the following punishments:(a)in the first four years of sailor's time(i)Cells for a period not exceeding five days;(ii)reduction to the second class for conduct if restored at the end of one month; or,(b)by the following punishment at any time-Deprivation of one Good Conduct Badge.