Section 329(1) in The Naval Ceremonial, Conditions Of Service And Miscellaneous Regulations, 1964
(1)(a)The standard required for the maintenance of "Very Good" Conduct is not the same as that for an award of "V.G." character, but is a higher and more exacting one. To maintain the standard a sailor must have conducted himself with sobriety, diligence and attention.(b)"Very Good" conduct is not governed by a sailor's character as assessed on his service certificate, except as in clause (c) of sub-regulation (2) and, subject to the provisions of the following rules, the latter part of a year for which a character lower than "VG." has been awarded may be regarded by the Commanding Officer as a period of "Very Good" conduct.