Cloaking is a very very very bad behavior. It is pretending to be who you are not. You will wonder if telling you have the best services in the world when you know it is certainly not is cloaking. No, it is not. Cloaking is a behavior you address specifically to Google or let’s say more generally to search engines. Ask your SEO company India about it if you have more questions.
For example, you are looking for Cinderella costume for your little girl. You type your query in the search box, Google displays 10 results about Cinderella clothing and you click on one URL. The next thing you see is a Cinderella who is way older than 8 years old with a very tiny costume you can barely identify. You will be extremely deceived and mad at Google. The truth is that Google did not do anything wrong bringing you onto a page like this because Google did not know it would be anything like that. When Google crawls this URL, it gets nicely little and cute little girls ready for Halloween.
What is happening is that the owner on this website is deliberately feeding Google with appropriate pages and deliberately feeding you with an adult version. This is cloaking. Google is paying great attention to this behavior and will punish anyone trying to play this kind of trick.
Now, there are few cases you are allowed to display different pages to Google and to your visitors. For example, if you identify your visitor’s location with his/her IP address and display the page in his/her native language, it is very different. You are simply adapting your content to your audience. Same thing if you display a lighter version of your website to people browsing it with a iPhone or any tablet. In both cases, your site is fitting your audience’s needs, you are not lying about your identity. You may want to increase website traffic but you have to do it ethically!