Lord Varuna is one of the Dikpals (guardian of directions). He is the protector of West direction.
In this sculpture, Varuna is depicted in simplest manner with four hands. Upper hands are holding Padmas (lotuses). Lower right is holding Japmala / rosery. Since the forth hand is damaged, we can assume that it must had been holding a pasa (a noose) which is the prominent ayudha (weapon) of god Varuna.
There is an animal like figure near his feet. It is Makara – the mystical sea creature which is a mount / vehicle of Lord Varuna.