Many studies have been conducted on grading system but only two studies could be found which were conducted on comparison of Grading system and Marking system namely by Jayshree and Kumar (2013) and Kumar (1991). They found that Students of Grading system possessed less Stress and the Grading system is as consistent as Marking system. Bhatt and Gunasekaran (1978) and Gunasekaran and Jayanthi (1979) found that grading system is consistent in giving uniform results. Where as Token (2006), Mcclure (2005), Dahlgren (2009) Crone (2007), Ahluwaliya (1985), Bharati (1984) and Chauhan (1984) found that grading system and types of grading system are helpful in motivating students. Corbat (2009) studied the reaction of students towards grading system and found their positive reaction. But on the other hand, it does create a feeling of unfairness among high achievers by placing the higher and lower mark achievers in the same grades, which thereby results in a state of depression for the high performers. Keeping this in view certain modifications can be made in the current grading system.