An aqueous solutions or dispersions of cross linked shellac-rosin polymer hybrid and a high gloss coating compositions thereof is provided comprising a polymeric product of a crosslinker and urethanised shellac-rosin favouring water resistant and gloss retaining water borne paint/ coating compositions. Particularly, a process of manufacturing the same is also provided that involves sequential dissolution of shellac and rosin in a solvent and reacting each with an isocyanate and polyamine followed by neutralisation with aqueous amine.