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I would go online and check out IKEA furniture/ living rooms for inspiration, even if there is not one close to you. Then with road trip it to IKEA or use their LR designs for inspiration. Affordable wall art, rugs, drapes/ blinds and furniture can turn this into a great spot. Right now it looks like odds and ends you have gathered about you.

Hi Raghvendra! What I understand is that you require ideas for cushions and also for the wall. First of all, decide on the theme which you are going for.....modern...European....etc. Your furniture looks a mix of the two. As such a full view of the room would help one to decide on the best combination. Also the furniture material esp sofa will decide the texture of the walls and the cloth you will use for cushions. Also the size of cushion will matter. Personal choice of the color is best. I always go for rustic looks which matches most & mingles with all set ups. It give a look of luxury too. Pl consider all these facts before you decide. Hope this will help you. Looking forward for a happy home!!

Lostinwoods, Covering the holes should not be a problem with a small dab of painters putty. If you are lucky or have planned enough the frames may cover the area left behind by hanger or clock. IMO, you should use colored photos with white frames as the room seems a bit dark as described by you. You may need some focus lights for the frames. Have a look at some of these photos. Thanks, Nitin Cornerstone Designs, Bangalore.