A very simple silly electronic question, as far as i know CE circuit inverts the signal. so if I provide a simple audio signal as input using some microphone and pronounce some letter "A" to the CE configuration it would say some other letter? Is my understanding correct? Please explain me this.
No, it will not change what you say. What it means is this:
When the input voltage of a CE amplifier increases, the output voltage decreases, and vice versa. An audio signal is a voltage that's changing constantly in strength (voltage) and direction. If you feed that to the input of a CE amplifier, it will cause the output voltage to keep changing too, but always in the opposite direction.
Look at the diagram below and compare the input waveform with the output. You'll be able to see that when the input is going up, the output is going down and vice versa. It's also called phase reversal. The human ear cannot detect the inversion so that the output sounds the same as the input.
The common Emitter amplifier just INVERTS the signal from +ve peak to -ve peak but does not translate the signal to any other form, as is obvious from the above wave form.