1. First need to read out specs of Speaker like details of sensitivity(db),impedance,recommended amp power(watts).
This is correct , it will help narrow down your selection and come to an approximate value of power requirement.
2. Match this with spec of amp, like amplifier power(watts).
Initially , to narrow your selection.But to finally decide , there are a couple of things that are more important. VOICING .By voicing I mean actually listening to the amp with the speakers.Like speakers ,amps have differing characteristics. For example Yamaha tends to be slightly bright and bass light , pairing a Yammie with bright speakers will offer very detailed sound but might make your ears bleed.Nad however if bass heavy ,slightly less detailed in the treble area,but highly musical and would do well with brighter speakers.Again , you have to hear your speakers first ,then decide on the amp ,tailoring the sound to suit your ears.I suggest you get a fix on the speakers first,then the amp.But remember that above all else ,all specs and numbers aside,Voicing is by far the most important thing ,if it sounds good to you ,thats all that matters.
3. Amp should be more power than recommended speaker power.
ALWAYS.Unless you like listening only to flute solos in which case a flea and pixie dust powered SET matched with single driver speakers will offer a completely different experience.But god help you if you want any bass performance.If you want midrange that will murder anything else this is definitely the way.
In the pro audio world (by pro audio I do not mean your local speaker dude who rents out their stuff for parties,By pro audio I mean PROFESSIONAL AUDIO.The guys who master your recordings before putting them on CDs and the guys who own studios with Adam audio monitors for referencing) it is generally the norm to feed a speaker with 2 X continuous power to keep enough headroom or go completely active.This is the standard practice in the industry.
Apart from all the above, how do you decide for room size like 10X12 (120sqft). how much power watts of speaker and amp should be choose from ?
Room gain ,on an average is around 3-6 db depending on placement.Hence you can add about that much to the sensitivity rating of the speakers and then decide accordingly,there are a few more variables ,it also depends on the VOICING of your room,if your room has loads of heavy furnishing and is acoustically dead,we can turn the room gain figure down,if your room is highly reflective acoustically I.e. its LIVE then we might have to read the room gain figure slightly higher.Obviously ,I do not need to tell you that smaller rooms ,mean less space,means smaller speakers
The reason is currently i am listening Bose companion 3 with speaker volume level in 9o clock position.
(Even the choice of music doesnt require heavy of punchy bass).
Well then I guess you could get away with smaller speakers ! I think the ideal would be to go for bookshelves ,whether you want to go for ones that are passive or active is upto you.Personally I prefer active ones.
@Shaiju
Threadjacking is an offence! read the rules ! lol
Buy speakers first ,then voice your amps , Polks are slightly warm sounding speakers ,I guess they would do well with Denon or Yamaha ,my suggestion to you is to first get a complete fix on what speakers you want,then come back to the forum with the entire specs and details of the speakers ,along with what tonal quality you are looking for as well as the music tastes you have ,using all that we can come up with an ideal match.For example your power requirements will differ based on the music you listen to ,if you are mainly into acoustical recordings you will require less power.Also be sure to post the specs of the amps that you are considering ,we forum folks are lazy and hate googling for specs.
HTH.