I have got a wooden arch made in my living room. Though the wood that is showing outside has been varnished and looks good(under the arch), the distemper done on the frame is peeling off or showing cracks. What should I do to make this arch look good and have the same finish as the surrounding wall?

Please advise and help.

No one can see what you see, so could you explain it better please?

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though the wood that is showing outside has been varnished and looks good(under the arch),

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Outside and under is confusing here.
Understand the under the arch is the "outside" the wood trim?

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the distemper done on the frame is peeling off

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Is this the whole frame? From side to side and under the Arch?

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showing cracks

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Exactly where is it showing cracks, the finish or also the wood?

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What should I do to make this arch look good and have the same finish as the surrounding wall?

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Don't know what the surrounding wall is in finish to look good to what? You want the whole Arch to look like the surrounding wall and what's that made of?

I know this all makes sense to you but just reading it doesn't