Section 319(6) in The Naval Ceremonial, Conditions Of Service And Miscellaneous Regulations, 1964
(6)When assessing the character of a sailor who is in the second class for conduct on the immediately preceding 31st December and may be restored to the first class at the end of the first or second months, the Commanding Officer may award the highest character permissible, for example, "VG.*" if appropriate or "Good", but if restoration is deferred beyond the first or second months, the assessment must be altered to "Good" or "Fair" as the case may be. Such alterations shall be reported to the Captain, Naval Barracks.